Hotel optimistic for new branch
Despite the mushrooming number of hotels in southern Bali, the operator of Ibis hotels said it remained optimistic that the occupancy rate of its newest hotel would reach between 50 to 70 percent.
Accor, the operator of Ibis hotels, opened on Monday its newest Ibis Styles mid-level budget hotel on Jl. Dewi Sri in Kuta, Badung, one of the most dense accommodation blocks on the island.
The construction was the latest effort by the operator to achieve the ambitious target of building 100 hotels with 20,000 rooms across the archipelago by 2015.
Gerard Guillouet, senior vice president of Accor Malaysia-Indonesia-Singapore, said that his side was optimistic about entering the market carrying the company’s brand.
He said Ibis hotels currently had no international competitor on the island.
“We are the hotel of choice and reference. It’s a very recognized brand with strong brand equity, and that’s a guarantee of quality,” he said after the opening ceremony.
“The price is affordable, but the product comes with quality,” he said.
The opening of Ibis Styles in Kuta adds to the number of accommodation in the southern part of Bali, which is around 90,000 rooms.
Research by the culture and tourism ministry (now Tourism and Creative Economy Ministry) in 2010 revealed that southern Bali was overpopulated with hotels and, therefore, needed a moratorium on new hotel construction.
As follow up, Bali Governor Made Mangku Pastika in December 2010 issued a regulation to halt construction in the area until research regarding demand was conducted.
The results were given to the Investment Coordinating Board (BKPM). The conclusion was that there was a disparity in the number of hotels in southern Bali compared to other parts of the island.
BKPM has said that the report would be published by the governor, however, no time frame had been set for this.
The Bali office of the Indonesian Hotel and Restaurant Association (PHRI) has said that construction continued as some permits had been issued years beforehand.
The Indonesian Forum for the Environment (Walhi) slammed the provincial administration for not being firm.
As result, Guillouet said that competition would certainly become tight.
“Competing here is definitely tough, because any brand will compete with whoever is around,”
he said.
“If they cannot fight and compete on product quality, they will just have to drop the rates,” he added.
Guillouet agreed that southern Bali — which accounted for less than 10 percent of the resort island —was overdeveloped, however, a moratorium was not the answer.
According to him, the accommodation business was determined by product quality, thus, those that could not complete would be fall by the wayside.
He added that the government should be more active in promoting the undeveloped areas outside southern Bali. In fact, many had their own unique attractions, he added.
The first step included efforts to increase the tourism promotion budget. With its size, Guillouet said Indonesia should have 10 times the budget Malaysia had.
Hotel optimistic for new branch
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