I Wayan Juniartha

I Wayan Juniartha
The Jakarta Post
Denpasar, Bali

Bali's hotels gear up for holiday season

The hotel industry in the country's main resort island, Bali,
is expecting a higher occupancy rate during the year-end holiday
season, which will be kicked off by a five-day Idul Fitri break
next week and holidays for Christmas and New Year.

Most of the island's hotels, whose occupancy rates mostly
plunged to below 10 percent following the terrorist attack on the
island's entertainment center recently, have started to attract
more guests thanks to their campaign to lure more local
travelers.

Most hotels in Bali's principal tourist resorts, Kuta, Legian,
Nusa Dua and Sanur, have seen a growing number of guests for Idul
Fitri or Lebaran next week.

Kuta, the scene of last month's deadly bombing, is reportedly
the area that has received the biggest number of confirmed
bookings for the season.

"In fact, for Lebaran we are already over-booked by
two or three rooms. On December 6, 7 and 8, our estimated
occupancy rate will be 100 percent," the Hard Rock Beach Hotel's
public relations manager, Dedy Sasmita, said.

Situated next to the famous Kuta beach, the four-star
418-room hotel has received the majority of it's confirmed
bookings from domestic vacationers from Jakarta and Surabaya.

"Meanwhile, for Christmas our estimated occupancy
rate varies between 58 percent and 60 percent," he said.

To attract more visitors, the hotel had slashed room rates
under it's Christmas package, effective from Dec. 20 to Dec. 26,
from Rp 950,000 to Rp 750,000 (about US$85) per night. It's the
price of its four-night New Year package has also been slashed,
from US$199 to $125 per room per night. About 65 percent of the
existing rooms have been booked for these events.

"The price of the Christmas and New Year packages are usually
higher than the normal room rate, but this year they are cheaper
than our US$180 normal room rate," Dedy said.

A significant increase in confirmed bookings has also been
confirmed by the Nusa Dua-based five-star, 390-room Nikko Bali.
The hotel's estimated occupancy rate during the three days of
Lebaran will be 90 percent, way above the current level of around
18 percent.

Over Christmas and the New Year, the hotel expects an
occupancy rate of 30 percent.

The Nikko Bali is also offering an interesting rupiah package
of Rp 750,000 per room per night to lure domestic travelers. In
addition, the hotel has scrapped its initial plan to impose a Rp
100,000 of surcharge for guests staying in the hotel over
Lebaran.

"Except for Lebaran, those who stay for a minimum of four
nights in the hotel will received a complimentary dinner for two.
This offer is valid until December. 26," the hotel's sales
manager Sitawati said.

Meanwhile, Sophie Suzylowati, the marketing communications
manager of the Legian-based, five-star, 405-room Bali Padma, said
that the hotel had only received a slight increase in confirmed
bookings for the holiday season.

"It is not something that we are very happy about. Currently,
our occupancy rate is seven percent, and it will increase to
around 30 percent over Lebaran," she said.

The hotel is offering an attractive year-end three-night
package for just Rp 2.7 million per package, with additional
benefits including a 20 percent discount on admission to the
water park and rafting, 35 percent discount for cruises, and a 50
percent discount for a spa treatment.

Separately, the situation is similar in Sanur, where the four-
star, 196-room Raddin is located. The hotel's senior sales
executive, Yunita Hidayatullah, expects no big increase in the
occupancy rate over the holidays.

She estimated that the occupancy rate would be about 10
percent over Lebaran, while for Christmas and the New Year, the
occupancy rate would be lower at six percent.

"The situation is very serious indeed. It seems that the
market is not responding to the various packages and price
discounts we have been offering," she said.

The chairman of the Bali Hotel and Restaurant Association
(PHRI), I Gde Wiratha, stated that whether holiday season
vacationers would provide the island's tourist industry with a
significant boost was something that remained to be seen.

"The occupancy rate, particularly in Kuta, is getting better,
hovering at around 25 percent, and we predict that it will
increase to around 50 percent by the end of this year. But, we
must remember that there are still many hotels that are suffering
from single digit occupancy rates. And, we are still waiting for
any huge influx of domestic tourists to materialize," he
said.

He also advised the tourist industry against slashing prices.
Instead, the industry should be more creative in integrating
various new services into their holiday packages.

"Do not slash prices, but provide more services. So for the
same price the customers will get a chance to experience more
activities and facilities, and, consequently, the package will be
more interesting," he said.