you are being messed around on your holiday, but am glad such an over-rated hotel on a really awful sewerage polluted beach next to the noise of the airport is finally closing. I suspect it is probably tax fraud, but then I suspect most hotels are guilty of that in Bali! If you must book a large alleged luxury hotel in Tuban, maybe try the Santika Beach; I think it is the best of all the hotels along that stretch (although I have business issues with the Management of that hotel, as far as you are concerned that is probably not an issue).

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