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Bali's Declining Tourism Spend

Author: Bill Barnett. Category: Tourism. Posted: 5th Jun 2012

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Phuket and Bali's parallel success stories have taken a somewhat different course over the past few years.

Phuket has continued to be fueled by an increasing number of charter flights from Eastern Europe, China and Scandinavia.

Bali on the other hand experienced a high level of demand that drove room rates higher and higher.

Now the later destination looks to be victims of their own success in a quest for a larger market. With hotel rooms growing in every nook and cranny of South Bali the island is being plagued by growing pains.

Media comments by the local head of Indonesia's tourism sector has pointed to concern over a decrease in the average length of stay and reduction in tourism spending.

Sounds familiar?

Yes the same impact is rippling all over Asia's resort destinations with a larger regional catchment of visitors and a lower long haul market.

Some are blaming the low-cost airline carriers and more domestic demand but the truth remains that Asia's rising middle class wants a holiday just the same as the more affluent upscale travellers.

So while it's easy to dismiss the underlying shift in tourism demand, most destinations have increased capacity to such a point that the only way to sustain growth is to shorten their horizons.

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