Hotels, tours to increase prices 10-20 percent next year

Tourism businesses in Bali have announced their plan to increase hotel and tour tariffs by around 10 to 20 percent next year.

“The general increase will be around 10 to 20 percent. However, we believe most hotels will not charge more than 10 percent due to the tight competition with new hotels,” deputy chairman of the Bali chapter of the Indonesian Tour and Travel Agencies Association (Asita) Ketut Ardana said.

Ardana acknowledged that it was common for hotels and travel agents that were able to maintain their quality to increase their tariffs annually.

Ardana said that for tour and travel agencies deciding on prices to charge customers for holiday packages, the cost of accommodation was the largest factor among a range of expenses that included transportation, entrance fees, meals and tour guide fees. The Bali chapters of Asita and the Indonesian Tour Guide Association (HPI) evaluate tour guide fees every two years, while other expenses are evaluated annually.

Chairman of the Denpasar chapter of the Indonesian Hotel and Restaurant Association (PHRI) Ida Bagus Gede Sidharta Putra and of the Badung PHRI chapter, I Gusti Ngurah Suryawijaya, both stated that the increase in hotel room tariffs had been considered from several factors, including the influx of visitors, exchange rates, the increase in minimum wages at regency and province level and the central government’s plan to increase the basic tariff for electricity by 15 percent next year, as well as competition against other countries’ tourism destinations.

Sidharta stated that during the ASEAN Tourism Forum (ATF), the International Tourism Exchange (ITB) in Berlin and other promotional events through the year, Bali was still among the most favored tourism destinations for foreign visitors.

The statistics have also reflected the ever increasing number of tourists from year to year. “In 2011, we recorded our best achievement, as shown by the very good occupancy rate for hotels both during and outside the peak season. That is our main reason for deciding to increase the hotel room tariffs,” he said, while adding that government’s plan to increase the price of electricity would also have a strong impact on hotel expenses related to laundry, lighting, cooling systems, food and beverage.

Suryawijaya pointed out that some hotels would start increasing their tariffs by early next year, while others would wait until the middle of the year. Acknowledging that hotel tariffs were under the authority of the hotels, Suryawijaya said: “The association cannot interfere. We can only support their decisions and considerations related to their tariffs.”

Executive vice president of the Aerowisata Hotel and Resort, Anton Partono, recently announced that his hotel would increase its room prices by 15 percent next year, despite the tight competition with other hotels. Aerowisata, which is under the Garuda Indonesia Group, currently operates 20 hotels nationwide and targets opening 15 new hotels next year.

Sourced: thejakartapost