The US$ tag in Bali

L

Lothar

Member
I have visited Bali many times, so have a number of my friends. We are all residing in Asian countries and are all earning Asian currencies - and this is our problem with Bali actually.

When we visit Thailand, Cambodia, Vietnam f.e. we pay for our bills in their respective local currencies in amounts calculated as per local supply/demand prices.
When we visit Bali we pay everything in US$, which makes any bill very expensive to us. We are not US$ earners, so if f.e. an American earns $5000/m in the US we would earn an equivalent MR or Baht in our local workplace.

I think it would be good if Bali business would consider adjusting their prices to the Indonesian habitat in order to make visits more affordable to customers coming from Asia.

What do you think?
 
I asked about this some time ago, after noticing that the cost for riding and training (equestrian) for us will be identical to the cost here in the U.S., as well as the cost for diving. We wondered why you can dive in Thailand for 20 dollars but in Bali it's U.S. prices all the way...it's curious...
 
The rupiah has done some spectacular gymnastics:

... over the years. When I first went there it was 800rph or so to the $ Au. At one point a few years ago the rupiah reached 9000 to the $Au. So it is not difficult to understand the original motivation for charging $US dollars, because at the times of the various flip-flops surely Balinese were caught out. That and the fact that people are being greedy. Maybe that's not the word, but surely market forces will lead people to charge whatever they can get away with. Whatever the $US dollar cost, surely it can't be too much if everybody pays it. Obviously you and I would rather pay what we would deem to be the Balinese going rate. In a third world country the 'harga turista' is part of the wallpaper. (... wallpaper?.... You know what I mean.)
Whilst I have never been diving in Australia, as part of the holiday experience I never baulked at the $US cost of a Balinese holiday diving experience. It was way too much money to pay, but I paid as others will do. The individual from the West will always justify this cost to himself because of the fact it is an overseas holiday.
I agree with you Lothar that this practice downgrades the potentially greater returns from increasing numbers of Asian tourists. But I think that the lure of the easy Western money excites the relevant Balinese much more than the equivalent or greater revenue from charging more Asian tourists less. It's 'a bird in the hand is worth two in the bush' stuff don't you think?
 
It's always been that way...

As far as I can remember, most Indonesian businesses have been charging USD and converted to the Rupiah even before the 1997 Krismon (Monetary crisis) where the Rupiah took a dive from Rp2250/USD to RP16000/USD (at the lowest point). Like most of you, I have a problem with this practice... especially when their posted exchange rate is much higher than those of the banks. I think Greed played a big role in this.
 
I'm Kinda Surprised With Your Post, Amigo

I mean, let's face the facts. Even within ASEAN member countries, the Indonesian rupiah is THE pariah of all ASEAN member countries. Virtually nobody wants the Indonesian rupiah. It is the most difficult currency to exchange outside of Indonesia.

Aside from your airfare, I cannot understand that you are required to pay for things like hotels, restaurants, and especially shopping in any currency beyond the Indonesian rupiah. In fact, it is illegal for any business, hotel or otherwise, to not accept Indonesian rupiah as fair tender payment if they are located in Indonesia. Sure, they may love the portraits of dead presidents, but they have no legal right to insist on payment bearing such images.

Anytime I travel outside of Indonesia, and within Southeast Asia, I too have to convert my Indonesian rupiah to US dollars before I leave. But, so also do the Indonesians traveling outside of Indonesia.

Come on Doc...your Asian currency, (Malaysia) is a whole lot stronger than mine. But...in a game of Monopoly, I'll take mine any day on a digit to digit value! Five hundred thousand for Boardwalk? No problem! :p
 
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