When Government Fail to Act

Bankruptcy of Kintamani Restaurants Blamed on Bad Governance
The Bali Post reports that many restaurants and hotels operating on the caldera ridge of Batur at Kintamani have closed, with many forced into bankruptcy. Overbuilding, combined with a possibly related diminishing popularity of Kintamani as a tourism destination, have been blamed for intense price competition and declining profitability.

The head of public revenues for he regency of Bangli (Dispenda), Ketut Riang, confirmed to the press that in 2014 as many four restaurants had ceased operations in 2014 causing a reduction in the collection of restaurant taxes collected from the region. At the same time, Riang claimed there was little the government can do to prevent business failures.

No rules are in place that will allow the government to prevent “unhealthy” price competition that the local chapter of the Indonesian Hotel and Restaurant Association (PHRI) blames for restaurant bankruptcies. The chairman of the PHRI-Bangli, Ketut Putranata, also blamed the disregards for the law by restaurants in Kintamaniand the resulting loss of “views” to lake Batur and Batur volcano due to illegal structures standing along the ridge.

Refocusing on an increasingly popular theme among tourism circles, the absolute failure of Bangli officials to enforce zoning and building laws and inability to take stern action against illegal buildings on the eastern side of the rim road is threatening the very future of an iconic natural tourism attraction in Bali. Putranata characterized the behavior of officials in Bangli as lacking “good will” with officials choosing to close their eyes and ignore the obvious problem of tourism businesses in Kintamani.

source : bali discovery tours

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