In Reply to: Cheaper in Bali posted by Bali lovers on Wednesday, 25. February 2009 at 14:21 Bali Time:
I really think that we should be comparing apples with apples in this case. It is not the point that Bali may be cheaper than in Australia, and in many areas it is not, but rather the fact that many people are now starting to comment on the perception that Bali is getting much more expensive. It is simply not enough anymore to say that the price increases are linked to exchange rates alone as the relative rates between the Rupiah and the AUS$ have not varied greatly over the past, volatile, twelve months. Rates have fallen dramatically in comparison to the US$ and this has caused a dramatic increase in hotel rates by those hotels quoting in US$. It also has an equally dramatic rise in profit rates for those same hotels. It is true that much of the accommodation available is cheaper than in Australia but an awful lot is much more expensive with the star ratings not reaching the same heights as at some other destinations. The same applies to many of the eating spots. I normally only eat the local cuisine so find, generally, that things are fairly cheap. But, for those who insist on sticking to European menus, or foods varied in taste so that Europeans will enjoy them, prices may come as an unpleasant surprise. Despite the high costs of operating a business in Australia and the comparable relatively low costs with doing the same in Indonesia (Bali) many everyday items are actually cheaper in Australia. This includes numerous items of clothing, food stuffs and even beer bought on the beach from a vendor with an esky. The facts are that Australia is a modern country with a certain minimum standards that must be reached to ensure legal operation of any business whereas Indonesia is not faced with the same cost structure or operating restrictions. However over the past twelve months, or so, the percentage price increases in Bali have been far higher than back here in Australia. The bottom line, though, is the reason you may have chosen to holiday in either location. Simply put your expectations for either location are probably very different. During my working life I have had the opportunity to travel around Australia a number of times and have been to Bali on over thirty occasions since 1969. I still enjoy both and don't try and compare or judge one against the other. I prefer to just to enjoy the moment, wherever it may be.
Cheers
Maverick