Hoteliers in Balikpapan, Indonesia, are calling for a stop to hotel development as the local market is already saturated. The East Kalimantan chapter of the Indonesian Hotels and Restaurants Association (PHRI) is calling on local authorities to cease license approvals for star-rated hotels in the city.
Chapter Deputy Chief, Yulidar Gani, told the Jakarta Post that 37 was already too may and that development should be frozen for the next five years.
Gani claims that oversupply is suppressing occupancy rates in the area, averaging near 40% in high-end properties and around 60% in two- and three-star hotels. Competition for guests is causing “unhealthy tariff wars”, he added.
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