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Two more hotels to open in Nusa Dua

Two more hotels to open in Nusa Dua

NUSA DUA, Bali (JP): The Nusa Dua tourist resort will soon
have two more international-standard hotels.

The president of the Nusa Dua resort management firm, PT Bali
Tourism Development Corporation (BTDC), Anak Agung Gde Rai, said
here on Sunday that construction of the two hotels would start
soon.

"Each hotel, which will be managed by Kempinski and Pacific
Resorts, will be located on a 7.5-hectare plot," Gde Rai said
during the grand reopening of the Nusa Dua Beach Hotel.

Kempinski is a Germany-based international hotel management
firm partly owned by Dusit Thani of Thailand, while Pacific
Resorts is an Australian-based hotel chain.

The concept of Nusa Dua, situated on the eastern rim of
Semenanjung Bukit, was born out of Bali's 1971 master plan to
reinvigorate the country's economy. The government then assigned
BTDC to develop and manage the 350-hectare resort area.

Basic infrastructures were installed in the resort, including
roads, electricity, water, telecommunications and waste systems.

Developers were then invited to lease individual plots in the
self-contained tourist area. The developers are usually joint-
venture companies between Indonesian and foreign partners.

Club Med, Nusa Dua Beach, Sheraton Nusa Indah, Sheraton
Lagoon, Melia, Grand Hyatt, Putri Bali, Hilton and Aman
currently operate luxury properties in Nusa Dua.

Gde Rai said that when a company signs a leasing contract with
BTDC, it has to pay a minimum compensation to BTDC until the
hotel begins operation. After the hotel begins operation, it has
to pay them a leasing fee.

"The minimum leasing fee is US$300 per room per year, with a
calculation that one hectare of land consists of 50 rooms," he
said. "The fee is calculated on the basis of the hotel's
operating revenues, comprised of 4 percent from room operation, 3
percent from food business, 2 percent from beverage business and
10 percent from other income."

He said BTDC netted a profit of about Rp 12 billion (US$5.2
million) last year.

The first hotel in the area was the Nusa Dua Beach Hotel,
built in 1983 by PT Aerowisata, a subsidiary of Garuda Indonesia.
(icn)

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