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If you can't compete, banish them DENPASAR - Following accusations leveled by Kuta residents and widely reported in the Bali press that the newly opened Tune Hotel on Jalan Ciung Wenara in Kuta was contaminating ground water with fuel oil, the two low cost hotels in Bali affiliated with AirAsia have come in for more sharp criticism, this time by local legislators who question both the hotel's environmental practice and its destructive impact on the market mechanism.

Quoted in Bali Post, I Wayan Puspa Negara, a member of the Badung House of Representatives (DPRD-Badung), alleged that a second Tune Hotel in Legian was "of a five star standard" but offering prices as low as Rp. 230,000 (US$23) a night which compete with locally owned and operated "Melati class" hotels.

"The Tune Hotel is five star class, but is selling at prices cheaper than Melati class properties. That is what you call unhealthy competition. Whatever the reason for this, even in the name of promotion, this is unacceptable. Five star hotels should not sell below a minimum promotional price of Rp. 500,000 to Rp. 600,000." I Wayan Puspa Negara

Balinese tourism leaders are concerned that the low price approach of Tune Hotels - who brand their properties as "no-frill" hotels, will destroy Melati hotels owned by local businesspeople and destroy the normal market mechanism. "Don't let the foreign investment sector run riot and destroy local investments in the process," said Puspa Negara.

For at least the Tune Hotel operating at Jalan Ciung Wenara, Puspa Negara is calling for their operating permits to be withdrawn for violations of local environmental standards until such a time as the owners are prepared to obey local rules.

Another member of the DPRD-Badung, A.A. Anom Guamanti, said the Tune Hotel has also violated the coefficient zoning rule which requires 40% of any building project's land be kept open to for gardens can absorb rain water that replenish ground water reservoirs. Both legislators are calling on the Badung Tourism authority and the Indonesian Hotel & Restaurant Association (PHRI) to take firm action against Tune Hotels in Bali to halt violations of the law.

In year's past, Melati class hotels were the more-or-less exclusive preserve of local entrepreneurs, offering low investment and minimum regulated access to the indigenous investors. Over the past several years, however, rules for low-cost accommodation providers have been manipulated creating loop holes for foreign investors building seeking to build low cost hotels or luxury villa developments.


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Related blog entries (category 'Oddly enough ...') Tags: Tune, hotel, cheap, competition, expensive


Posted in Oddly enough ... @ 29 December 2009 01:44 CET by Jeroen · 'Blog' RSS feed · permalink





belgianguy
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obviously this I Wayan Puspa Negara character has never even set foot in a tune hotel, if he had he would not talk nonsens like this...tunehotel is not a 5 star hotel and doesn't even come close...anyways I don't see how 2 tunehotels with a couple of hundred rooms would 'destroy' the local hotels!



Yerun
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I think it's called 'doing business the Bali way'. Emoticon: So funny



kiwimave
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Indonesian people are easy to get jealous with sucessful companys like Tune Hotels or Air Asia or whatever, especially if these companies come from Malaysia and are way better in serving the tourists then their own companies.



Yogya-Bali
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(Edited) Posted @ 06 January 2010 16:24


The Tune Hotel is five star class, but is selling at prices cheaper than Melati class properties. That is what you call unhealthy competition. Whatever the reason for this, even in the name of promotion, this is unacceptable......" I Wayan Puspa Negara
Never thought to improve quality and service? That's healthy.

Balinese tourism leaders are concerned that the low price approach of Tune Hotels .....will destroy Melati hotels owned by local businesspeople and destroy the normal market mechanism. "Don't let the foreign investment sector run riot and destroy local investments in the process," said Puspa Negara.
Talking about normal market mechanism! What are they doing at the moment? Raising the prices without any improvement and totally unaware of the still ongoing economic crisis in the western world. Talking about destroying your own market......

In year's past, Melati class hotels were the more-or-less exclusive preserve of local entrepreneurs, offering low investment and minimum regulated access to the indigenous investors. Over the past several years, however, rules for low-cost accommodation providers have been manipulated creating loop holes for foreign investors building seeking to build low cost hotels or luxury villa developments.
Typical Balinese: the stupidity and childishness of these DPRD-members.



alterity
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Too many of the Melati hotels in Bali are poor quality and expensive (especially since the rupiah has appreciated so much).

They need to get their act together and improve.



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