Oversupply of Rooms and Diminishing Water Supply Should Cause Government to Refuse New Accommodation Licenses.
(1/5/2008) A leading academic and observer of Balinese tourism from Udayana University’s Tourism Study Department, Drs. I Putu Anom, has called on the Government to call a halt to the building of new accommodation in order to stop the diversion of land from agricultural purposes and to allow existing accommodation operators to consolidate their business positions.
Quoted in BisnisBali, Anom said the Government must act firmly in refusing to issue new accommodation permits. The tourism observers claims that supply currently far outstrips demand in the accommodation sector as reflected in average occupancies of 54.58% at all Bali hotels in 2007, up from an average of 40.35% in 2006. Data collected by Udayana University suggests that the current over supply of rooms will remain a factor until 2010.
Anom told the press that in addition to issues of over supply, Bali also faces problems of limited supplies of fresh water and the limited carrying capacity of Bali's sole airport.