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Greed Precedes the Bust. Real Estate Leader Warns that Bali Hotel Development is Uncontrolled, Overbuilt and has Exceed Local Environment's Carrying Capacity. (9/6/2014)

The vice-chairman of theBali chapter of Real Estate Indonesia (REI), I Made Sudhana, is urging the provincial government of Bali to declare a moratorium on permits for new hotels in Bali. Sudhana warns that as the result of uncontrolled development, Bali's current condition has become chaotic, dirty and highly disordered.

Speaking to Kompas.com, Sudhana  said on Monday, September 1, 2014: "Hotels can now be found in every corner of Bali. Most are budget hotels. Because of this we urged the provincial government of Bali to urgently limit building permits for new hotels."

Sudhana believes that budget hotels are being built and managed by local and foreign entities with little or no regard for the environment's carrying capacity. Some new hotels, moreover, are being built on postage-stamp sized plots of land of only 8 are (800 square meters). Projects on such minuscule pieces of land mean little or no space is reserved for parking or garden areas to absorb groundwater.

"In the end, the vehicles of hotel guests must park on the side of roads resulting in more traffic congestion in Bali. The chaotic situation of Bali grows more chaotic," explained Sudhana.

Also of concern, according to Sudhana, the average occupancy levels of hotels in Bali continue to decline. Based on statistics from the National Statistics Bureau (BPS) for July 2014 showed an average occupancy of 61.40%, down 0.70% from the average of 62.10% reported in June 2014. When compared to the same period in 2013, occupancies in July 2014 are down 1.04% from 62.44% one year ago.

Sudhana insists that his call for a moratorium on new hotels is not without basis. He says the number of new hotels in Bali continues to rise. almost beyond the limits of anyone's ability to calculate. Hotels are popping up in every district and sub district of the Island.

Reports from BPS estimated that by the end of 2016 Bali will open another 67 hotels that are home to 12,226 rooms. Of that number an estimated 40% is comprised of three-star hotels.

The official count says Bali had 25,400 hotel rooms at the end of 2012. Another 4,700 rooms were added in 2014, with another 4,100 estimated to come on line in 2014-2016.  

This means Bali will have 34,200 rooms on sale by the end of 2016. Not included in this total are new condotel units estimated to number at east 13,000 by the end of 2016. See more - balidiscovery.com

 

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