Hotel room rates in Bali could rise by up to 15% from April, when the Indonesian government will hike the cost of fuel.
Chairman of the Bali Hotels Association Jean-Charles Le Coz said it was usual for fuel increases to then drive up prices across the board, resulting in “heavier costs” for operators.
“It is to be expected that hotels will try to negotiate higher increases than other years,” he admitted. He stressed that supply and demand played a key role when negotiating contracts.
Meanwhile, general manager of Bali Garden Resort and Spa Adrian Forsyth anticipated prices could even fall over the coming year.
“With the increasing supply of rooms in Bali and with the slight softening of demand due to the current world economic climate, I expect room rates in Bali will not rise,” he said. “More likely, they may even fall.”
Regardless of any increases, all parties stressed Bali would continue to offer good value to Australian travellers, particularly on the back of the strong Australian dollar.
