The number of hotel rooms in Bali is in a serious state of over-supply, yet construction of new hotels in the southernmost regency of Badung continues apace.
The chairman of the Bali branch of the Indonesian Hotel and Restaurant Association (PHRI-Bali), Tjokorda Oka Artha Ardhana Sukawati, said on Friday, October 13, 2017, that steps are underway to deal with the excess inventory of rooms in Badung. The PHRI-Bali chairman blamed new building projects in Badung on pre-existing building permits that are now being used to build new properties, as quoted from Bali Discovery.
As reported by Beritabali.com, Tjokorda said the Governor of Bali recommended a moratorium on new hotels in 2012 for the Badung regency. In 2014, the regency issued a policy that did not forbid the construction of new hotels but tried to bring new projects under control. This policy has imposed rules on the minimum land area needed to open a hotel in areas such as Tuban and North Kuta.
“While the Governor of Bali has recommended a moratorium, the final right to issue permits rests with the Regency. Most of the rooms are in Badung Regency. In the past, someone with only 10 are (1,000 square meters) of land could construct hundreds of hotel rooms. Now there are restrictions on new construction,” said the PHRI-chairman.