TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Bali's Real Estate Market Loses Dollar Touch

Category: Real estate, Posted:06 May 2015 | 06:00 am

A newly introduced regulation in nearby Indonesia is requiring real estate developers and hotels to price and collect goods and services income in local currency.
The government run Bank Indonesia as of March 31st has issued a new directive for compliance with full implementation required by July 1st of this year.
In the past Bali property developers have largely priced products in US dollars and often collected transaction payments on that basis.
Likewise many hotels quote rates in the US currency and contacting with overseas agents is most often done on the same exchange basis.
Indonesia's currency has remained volatile over the past few year and has broadly depreciated against the US dollar and a number of other major currencies.
For businesses who prefer to an option to often take US dollar denominated loans at considerably lower interest rates the those in Indonesian currency, the trading risk has expanded considerably with the new regulation.
As we move through the year of 'disruptive' events, currency play is now becoming a major highlight of hotel and real estate business plans.

Other News

Read more

Khao Lak Hotel Supply Continues To Expand

Category: Hotels, Posted:22 Oct 2020 | 06:00 am Despite the downturn of Covid-19, hotel investment confidence in Khao Lak remains positive in the long term. One sign of this is a newbuild Pullman-branded Khao Lak Resort Is set to open on 1st December. The 253-key beachfront hotel and villa property features a design by Martin Palleros of Tierra Design.  Palleros is the architect […]
Read more

Minor’s Bill Heinecke Speaks Out About Chinese Return

Category: Hotels, Posted:21 Oct 2020 | 11:40 am We had a candid conversation a few days ago with Minor International’s Founder and Chairman Bill Heinecke about Thai tourism. Two key takeaways from the conversation were: The Asian financial crisis of 1997 was a walk in the park compared to the damage to the Thai economy during Covid-19. Thailand must find a way to […]
Read more

Asia’s Largest Hotel Investment Conference Next Week

Category: , Posted:16 Oct 2020 | 15:28 pm HICAP, Asia’s biggest hotel investment event of the year is set for next week in a 3-day virtual format. Scheduled for 21st to 23rd October, this is the first year the conference will be live online and not in person, in Hong Kong. C9 Hotelworks Bill Barnett will be moderating a special Thailand panel of […]