New accommodation must be licensed in Bali

New accommodation must be licensed in Bali, Posted: 09 Sep 2012 11:09 PM PDT, by Wasti Atmodjo on 2012-09-10,  The Indonesian Hotels and Restaurants Association (PHRI) Bali chapter is strongly recommending newly opened tourist accommodation facilities equip their operations with the required licenses and participate in qualification schemes.

PHRI chairman, Tjok Oka Artha Ardana Sukawati, confirmed that the association had not given any support or the green light to the development of new accommodation, on the grounds of the island’s tourism sustainability.

He warned that the opening and operation of new hotels should not disturb the current tourism situation by applying low-room rates and discounted prices, which in turn would lead to a tariff war.

“New hotels are required to register as members of PHRI. They are the ‘new kids on the block’ and unless they are PHRI members, we do not recognize them as tourism stakeholders. There are so many unfamiliar hotel owners and managements doing business without introducing themselves. We can kick them out if they continue disturbing the business environment,” Sukawati warned.

Accommodation facilities in Bali, he said, had exceeded market demand and the mushrooming construction of new hotels, villas and other facilities would lead to unhealthy business practices, as well as become a heavy burden on the island’s environmental state.

Sukawati, the Gianyar regent popularly known as Cok Ace, suggested that managements and owners of new hotels that were already in operation abide by the present requirements and regulations.

“Obtaining all necessary licenses and undergoing the qualification process are just initial efforts to show their good intentions and to also pay attention to the island’s social, cultural and environmental condition,” remarked Cok Ace.

Cok Ace continued saying that a
large number of new hotels had categorized their establishments as certain star levels without undergoing any official qualification process.

The licensing and qualification processes were intended to provide accurate information on specific accommodation to customers, as well as regulators, he explained.

“When you promote your property as a three- or four-star hotel,
all your facilities and services have to meet with international standards for those categories, otherwise it will mislead customers,”
he said.

He also said it would be easy for the PHRI to coordinate with owners and managements of hotels and restaurants which belonged to the association.

“They [members of PHRI] have to follow all government regulations and requirements, while many of the new hotels and other establishments have never given us any information regarding their facilities, security systems, employment standards or anything else,” Cok Ace stated.

He admitted that he was quite disappointed over the government’s lack of action on a variety of construction violations and the weak licensing procedures.

“The government seems to close its eyes to so many deviations. PHRI’s request for its involvement in the issuance of permits is also ignored,” he added.

He continued stating that since he was the regent of Gianyar, “It is easier for me to apply all regulations in my area.”

Bagus Sudibya, deputy chairman of the Indonesian Tour and Travel Agencies Association (ASITA),
said most problems that occurred in the tourist industry were caused by the government’s inconsistent policies and weak law enforcement.

“The government at all levels [central, provincial and regional] only cares about how to generate as much tax and revenue as possible from the industry. But it never
pays serious attention to seeking solutions for any emerging problems. Every new minister or leader comes up with his or her own
policy. This is very saddening,” Sudibya said.

Anak Agung Gede Rai, former president of PT Bali Tourism Development Cooperation (BTDC), was also concerned saying that the spiraling amount of hotel accommodation had decreased the island’s average occupancy rate.

“This was the real proof that we have an oversupply of hotel rooms. The island’s tourist industry is heading to saturation, and even to bankruptcy,” Gede Rai said.

This Article Sources : " New accommodation must be licensed in Bali " http://www.thejakartapost.com/bali-daily/2012-09-10/new-accommodation-must-be-licensed.html

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