Tourists face a Bali bereft of the Hyatt

JAKARTA (JP): Fierce competition in the hotel industry on the holiday island of Bali is forcing the Bali Hyatt to launch a large-scale renovation in an attempt to hold on to its market share.

The five-star hotel at Sanur Beach, is changing one of its three buildings to conform to a more Balinese style.

The hotel's marketing and communications officer, Ayun Sundari, told The Jakarta Post yesterday that the Hyatt will be shut down for eight-months.

Hirsch Bedner of Singapore is the design consultant that will give the hotel a Balinese flair, while Sumitsu of Japan will bring the bold plan to material fruition, she said.

The hotel, with 388 rooms, will reopen in the middle of December.

"The extensive renovation will cost US$12 million, which will be partially financed with loans," Ayun said. She refused to specify the details of the loans.

During the renovation, more than 80 percent of some 800 employees will be temporarily out of work.

Ayun said that by closing the hotel, the renovation work will move more quickly than if the refurbishment was gradual.

"Besides, we will also keep up our name. Imagine, our guests would be annoyed by the renovation process when staying here if we made a gradual renovation," she said.

Salaries

She said that while 150 workers will not be working due to the renovation, they will get their monthly salaries.

"They will continue receiving their salaries at their normal levels, but their take-home receipts will be only about 75 percent of their normal revenues because they will not get any service fees while the hotel is totally closed," she said.

Ayun also said about 150 permanent officers will continue their daily jobs, including technical, engineering and financial activities and overseas marketing.

"We should keep on promoting the hotel as foreign visitors usually arrange their holidays one or two years in advance," she said.

She said all of the hotel's personnel will resume working in the middle of October for various training courses.

"We are competing for the best service," she said, adding that the training courses will focus on overseas sales.

According to Ayun, Bali Hyatt, established in 1973, has a steady occupancy rate of 70 percent.

"Our guests within the last few years were mostly from Europe, including Germany, Italy and France. But we will concentrate on Asian visitors as the number of visitors from Japan, Singapore, Taiwan and Hong Kong is increasing," she said, adding that several rooms will be dominantly designed with an Asian style.

There are five hotels managed by Hyatt in Indonesia, including the Aryaduta and Grand Hyatt in Jakarta, Hyatt Regency in Surabaya, East Java, Bali Hyatt and Grand Hyatt in Nusa Dua, Bali.

Ayun said that a European travel magazine elected her hotel as the best leisure hotel in the world two years ago.

She said that Jan Dharmadi, a shareholder of PT Wyncor which owns Bali Hyatt, also controls the Grand Hyatt in Jakarta. (icn)