By Indah Setiawati

Some of Bali's hotelier and resort managements are confident that even with the global financial crisis, the annual hotel rate increase will not affect the tourist industry.

However, worldwide businesspeople, especially those working on U.S.-related business sectors, are expected to cut their travel budgets -- including vacation travel plans.

Aston International hotels, resorts and residences head of marketing Norbert Vas said he was sure his overseas customers would accept a hotel rate increase of 10 to 15 per cent and 20 to 25 per cent for Bali's villas.

"We are sure that next year our hotel business will be bullish. I believe the market can accept the price hike. I have talked to our customers and most of them agree with the new rate," he told The Jakarta Post over the weekend.

He said the properties under the group's management would see an average increase of 7 per cent next year, while they usually increase by 8 to 17 per cent annually.

He said demands from Korea, Europe and Japan as well as in other emerging markets such as China and Russia would still be stable amidst the crisis.

"The expensive Australian dollar is another advantage for us because we predict they will choose Bali as the closest and least expensive holiday destination," Norbert said, adding that even with the rate increase, the island's hotels were still under-priced as compared to Thai hotels in rival tourist destination Phuket.

As for the domestic market, he said next year's presidential election would be another blessing, as people would use the hotels' convention rooms.

The only concern is another terrorist attack, he said. "That's the only thing that can hurt us now."

Sugiono, sales and marketing manager of Orangjje hotels which are located in Denpasar and Legian, shared the same security concern.

"Security is a key factor. After the Bali bombings, giant hotels that previously were not interested in the domestic market went after it, which made the competition a lot more fierce," he said.

He said his hotels had not been affected by the current economic turmoil because they focused solely on the domestic market.

"We will increase our hotel rate by 15 per cent next year. Insya Allah (God willing) the customers can understand and accept it," Sugiono said.