PHRI Bali urges capacity study as villas go up for sale

Denpasar — The Bali chapter of the Indonesian Hotel and Restaurant Association, known as PHRI Bali, said on Sept. 30 that villas made up most tourist properties being offered for sale after a random field check conducted with the Bali Tourism Agency. Some properties were still operating with occupancy above 60 percent and as high as 75 percent.

The findings came as Bali’s accommodation supply continued to raise concerns about oversupply, even though properties on the market were not necessarily performing poorly. PHRI Bali said occupancy above 60 percent could still indicate a healthy operation, based on the experience of its deputy chairman, I Gusti Agung Ngurah Rai Suryawijaya.

Why Bali’s capacity matters to visitors and residents

PHRI Bali called for the government and tourism stakeholders to conduct a carrying-capacity study for Bali. In practice, such a study would assess how much additional accommodation and tourism activity the island can support before pressure on infrastructure, space and the environment becomes harder to manage.

For foreign residents and visitors, the issue is broader than whether an individual villa is operating normally. Continued construction of hotels, villas, condotels and apartments could increase competition among properties and contribute to price pressure in areas where accommodation supply already exceeds demand. The association said a capacity assessment could help establish limits for future tourism growth and new accommodation development.

PHRI Bali also proposed using spatial-planning instruments such as detailed spatial plans, while taking environmental carrying capacity into account. It said the government and other stakeholders should first evaluate current problems and consider reorganizing development, including a possible moratorium, over a period of three to five years.

NusaBali independently reported that the properties identified in the joint random data collection were mostly already-built and operating villas. It also reported that some hotels offered for sale were operating above 60 percent occupancy, reaching 75 percent, and linked PHRI Bali’s call for a carrying-capacity assessment to decisions about the future limits of tourism growth.

Sources

• Bali Post — Balinese news outlet
• NusaBali — Balinese news outlet
• detik.com
• rri.co.id
• Tribun Bali — Indonesian news outlet