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Challenging Conditions for Hotels in Bali

Hotels in Bali had a challenging year of 2015. They had to face such difficulties as volcanic disruptions, new government policy with new visa regulations, and increased hotel supply. However, there were positive moments too, such as improved airport infrastructure that helped serve more tourists. All in all, hotels in Bali managed to increase their ADR (average daily rate) and RevPAR (revenue per available room) in Rupiah.

The new report by Horwath HTL and C9 Hotelworks throws light upon the state of hotel market of Bali. They name 2015 a “year to forget” for hotels in Bali. Due to weakened demand, hotels had to struggle whole year in order to maintain occupancy, often at the expense of the room rate in USD. This year is expected to be more beneficial for the hotel industry of the tropical island. Even though there are new hotels under construction, delays in opening have become common these days, and decreasing occupancy is not drastic, so Bali hotels still post significant growth of both RevPAR and ADR in IDR.

Until 2019, as many as 115 new hotels are to open in Bali with over 15,000 new rooms. That will increase the total room supply to 55,000 rooms. Experts forecast slow decline in sales in coming years. Significant changes can happen if the government adjusts their policy about foreign property ownership. Currently, most investors in Bali are domestic ones, while overseas investors wait for advances in Indonesian laws.

25.01.2016

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