Effect Global Financial Crisis – Occupancy Rate Hotels in Bali are Decline

>Hotels in Bali are yet to experience any significant down turn of the occupancy or the rate of room reservation, as the island’s tourism leaders showed signs of nervousness in the global financial crisis begins to hit industry. Several hotels in Bali, reported that slightly lower occupancy rates and availability of last year, with the decline attributed to the global crisis and the Australian government travel warning.

Meutia Mahardhika, public relations manager of Bali Hyatt in Sanur, said the occupancy rate of the hotel is about 50 to 60 percent in the first weeks of December, similar to the same period last year last. She said the Hyatt had not noticed a significant reduction in rate of booking for New Year celebrations, as it was already booked about 80 percent before the start of January. “So far we’re still very good, but we are concerned about the financial crisis because our core market of Europeans, who may feel less inclined to travel to Bali to spend their holidays and could opt for destinations closest place, “she said.

Ani, a reservations agent at the Hotel Mercure in Sanur, reported a decline of about 10 percent of reservations for the period January-December, at an average occupancy rate of 70 per cent this year 80 per cent last year. However, the hotel is about 90 percent booked for the end of December. “I can say that we are the hosts, again and again, despite the financial crisis,” she said.

In Seminyak Bali, Kuta and Legian areas, hotels are less encouraging numbers. Sukaesih Winjarini, sales manager of the Oberoi Hotel, said the reservation has been slow in December 2008, with an average occupancy of about 60 per cent.

Bali hotels tend to live 70 to 90 percent occupancy during December to January, a period known as the local tourism industry traditional season. “In our case, we just had a slow month, whether because of the financial crisis or something,” she said.

With so many heading south, Robin Deb, director of a hotel chain Accor operated, warned another problem for the tourism industry in Bali could be from the south too – the Australian government travel warning published last month about the recent execution of three bombers in Bali. “I can say that, at least for Accor hotels in Legian and Seminyak, cancellations were mostly Australian tourists, who I think is due to the travel warning,” he said.

Head of Tourism in Bali, Ngurah Wijaya, confirmed that Bali had lower occupancy rate in the first two weeks of December, a sign that the tourists were waiting for the financial crisis to subside before to go on vacation. “Rate reservation May remain the same or slightly lower, but this is not a sign of what would happen in the coming days, except that it will not be as high as last year,” he said.

“The point will decide in January and February, and I hope we will continue to be invited.” He urged hotels and tour operators not to engage in a price war, as we saw after the first Bali bombing in 2002, which almost destroyed the tourism industry of the island. “Companies in the tourism industry must work together, helping each other in promoting the island as it is in the best interest of the island to survive as a whole,” he said.

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