DENPASAR ~

Deputy Chairman of the Indonesian Tourism Industry Association (GIPI) Bali Bagus Sudibya stated that limitation of the civil servants (PNS), ministries and government’s owned company meeting at the hotel from 1 December 2014 gives a major impact on the tourism industry in Bali.

“On one hand we agreed in terms of the efficiency of the government budget and the efficiency can be transferred to the infrastructure and for the welfare of the people. But on the other hand, this rule has a major impact on tourism,” he said in a discussion in Denpasar, Wednesday.

According to him, the implementation of the rule wills affected hotel as the business relies on “meetings, incentive, conference and exhibition” (MICE) which is often carried out by the government.

“The contribution of the government towards the MICE range from one percent even up to 100 percent,” said he said.

Meanwhile, the Indonesian Hotel and Restaurant Association (IHRA) Bali recorded substantial losses as a result of the ban by the government meeting held at the hotel.

“From Badung reported about 25 percent (losses) from the MICE sector, “said Chairman of the IHRA Bali, Tjokorda Oka Artha Ardana Sukawati.

According to him, the MICE industry is large enough to contribute to the income of hospitality on the island that has been widely held by ministries, state or local government.

“In fact it is one of the indicators of income. It is banned when we try to develop it,” he said.

Previously, the government issued a circular No. 11 of 2014 which contains restrictions conference meetings outside the office as in the hotel.