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Wisnu:In Bali you can stay at the main tourist area such as Ubud, Nusa Dua, Kuta, Benoa, Sanur and Jimbaran - and the DS will pick you up and drop you every day (add cost may apply) - might not be a problem to spend 3 - 6 hours (depend on the dive site) on the road for 1 - 2 days - but not very convenience for longer period.
Which area is better ? difficult to say - some people hate Kuta, in fact more fully booked rooms in Kuta than other location. Myself love Sanur - but my wife always prefer Nusa Dua or Benoa. Everybody has their own preference. Other thing in Bali - the ***** hotel not always more expensive than small hotel - pls look for their special package. You can enjoy Bali with $10 a day or spend $1000 a night - you choose.