In Reply to: Plethora of locally owned cheap hotels posted by balibagoose on Monday, 27. February 2012 at 23:23 Bali Time:
"...Based on research carried out by the Bali branch of Bank Indonesia, the Island's southern regions of Denpasar, Badung and Gianyar are being overrun with melati properties.
Speaking on Tuesday, February 21, 2012, Luarensi Yoan Destalinda, a researcher from Bank Indonesia, said that the over-supply of inexpensive hotel rooms in South Bali has resulted in occupancy levels below 30% at non-starred hotels during low season and a 'rate war' offering prices that are not economically sustainable.
In order to address this problem, the government is being urged to introduce a moratorium on melati-class hotels in the southern part of Bali. 'The tariff war between melati hotel operators is crazy. So this does not continue it is recommended that a moratorium on the construction of new melati properties be introduced in the three southern regencies,' said Laurensia."
Full story in the link