Bali’s renowned FINNS Recreation Club has announced the layoff of 157 employees, a decision that coincides with the start of the high tourist season. The club, a major social venue in Bali’s Badung Regency, attracts hundreds of thousands of visitors annually. This move reflects a broader trend of workforce reductions in the region’s tourism sector.
The announcement comes as FINNS Recreation Club, which is associated with the popular FINNS Beach Club at Berawa Beach in Canggu, shifts its business strategy. According to Wayan Wirawan, Director of PT Bali Mitra Internasional, the company is transitioning from a recreation-focused model to a more resort-oriented approach. This strategic pivot has been underway for two years, culminating in the recent layoffs.
Speaking to the media, Wirawan, alongside HR Manager Kadek Kharisna Gamentra, emphasized that the layoffs were part of a planned restructuring. “These workers chose to stop working to switch to running their own businesses,” Gamentra explained. Severance packages were offered to the affected employees, which included 98 permanent staff, 16 early retirees, and 43 contract workers.
Impact on the Local Workforce
The layoffs have drawn attention from local authorities and industry observers. Eka Merthawan from the Badung Regency Industry and Manpower Service expressed concern over the situation, stating, “We really regret and express our deep concern over the situation that has befallen the workers.”
Merthawan assured that the Badung Manpower Office is committed to ensuring a fair resolution between management and workers, prioritizing social dialogue to protect labor rights. He also expressed hope that the affected workers would be rehired when the new FINNS Resort opens in two years.
Tourism Sector Stability Questioned
Meanwhile, Badung DPRD Chairman I Gusti Anom Gumanti raised questions about the layoffs occurring despite stable tourist numbers. “The level of tourist visits is quite good. So, it is very strange if the tourism industry, such as starred hotels, other accommodations, and entertainment venues, is reducing its employees,” Gumanti remarked.
Badung Regency, home to popular tourist destinations like Canggu, Uluwatu, Kuta, Legian, and Seminyak, has been a focal point for the tourism industry. The recent workforce reductions at FINNS Recreation Club highlight underlying challenges despite the sector’s apparent stability.
A New Era for FINNS
According to the FINNS Recreation Centre’s website, the club is poised for a transformation. “A bold new era is coming! We’re bringing you world-class facilities, including state-of-the-art fitness and wellness spaces, a luxurious spa, top-tier sports facilities, exceptional dining experiences, and elevated leisure areas,” the website states.
The upcoming Finns Bali Resort, a collaboration between FINNS Bali and Mirah Investment & Development, will feature a 274-room facility in Berawa. Spanning over 1.7 hectares, the resort will offer exclusive access to all FINNS venues, including the beach club and the soon-to-be-launched Empire Day and Night Club.
Looking Ahead
As the FINNS Beach Club remains a major attraction, hosting a significant portion of international visitors, the transition to a resort model represents a strategic gamble. The club reports serving 8,800 drinks daily, with 17% of all international arrivals visiting the venue. This shift could redefine Bali’s hospitality landscape, potentially setting a precedent for other businesses in the region.
The layoffs at FINNS Recreation Club underscore the complexities of navigating the evolving tourism market in Bali. As the region adapts to new economic realities, the focus will likely remain on balancing business innovation with workforce stability.
