Key Events and Market Impact 

• Mount Agung Eruptions: The volcano erupted multiple times in 2018 and early 2019, causing temporary closures of Ngurah Rai Airport and affecting international arrivals. 

• Lombok Earthquake: The 7.0-magnitude earthquake in August 2018, followed by significant aftershocks, impacted Bali’s tourism. 

• Regulatory Crackdowns: The Balinese Provincial Government’s crackdown on unlicensed shops aimed at curbing fraudulent practices against Chinese tourists led to a decline in Chinese arrivals. 

Visitor Arrivals 

• Total Arrivals: International arrivals reached 6 million in 2018, a 6% year-over-year growth, though slower compared to previous years (16% in 2017 and 23% in 2016). 

• Nationality Mix: 

• Asia (Excluding ASEAN): 60% of total arrivals, with slight growth of 3%. 

• ASEAN: Strong growth of 29%, driven by visa exemptions and affordable flights. 

• Europe: 23% of total, with moderate growth from Russia (17%), UK (10%), and France (10%). 

• Americas: 6% of total, with a 12% increase, particularly from the US (21%) and Mexico (24%). 

Top Source Markets 

• China: Despite a 2% decline, China remained the top source market with 1.36 million arrivals. 

• Australia: The second largest market, with a 5% increase in arrivals. 

• India: The fastest-growing market among the top five, with a compound annual growth rate of 30% since 2010. 

• Philippines and US: Notable increases, with 52% and 21% growth, respectively. 

Hotel Performance by Rate Segment 

• Overall Performance: 

• Occupancy: Increased to 72% in 2018 from 71% in 2017. 

• ADR (IDR): Increased by 13% to 1,989,000. 

• RevPAR (IDR): Increased by 16% to 1,438,000. 

• ADR (USD): Increased by 4% to 136. 

• RevPAR (USD): Increased by 7% to 99. 

• Luxury Segment (>$350 USD): 

• Occupancy: Increased to 58% from 57%. 

• ADR (IDR): Increased by 9% to 7,465,000. 

• RevPAR (IDR): Increased by 10% to 4,308,000. 

• ADR (USD): Increased by 3% to 526. 

• RevPAR (USD): Increased by 4% to 304. 

• Upper Upscale Segment ($151 – $349 USD): 

• Occupancy: Declined to 69% from 71%. 

• ADR (IDR): Increased by 8% to 2,981,000. 

• RevPAR (IDR): Increased by 5% to 2,059,000. 

• ADR (USD): Increased by 1% to 209. 

• RevPAR (USD): Decreased by 1% to 144. 

• Upscale Segment ($101 – $150 USD): 

• Occupancy: Declined to 72% from 73%. 

• ADR (IDR): Increased by 5% to 1,781,000. 

• RevPAR (IDR): Increased by 5% to 1,290,000. 

• ADR (USD): Decreased by 1% to 125. 

• RevPAR (USD): Decreased by 2% to 91. 

• Midscale Segment ($50 – $101 USD): 

• Occupancy: Increased to 75% from 71%. 

• ADR (IDR): Increased by 26% to 1,158,000. 

• RevPAR (IDR): Increased by 33% to 874,000. 

• ADR (USD): Increased by 9% to 75. 

• RevPAR (USD): Increased by 16% to 57. 

Performance by Location 

• Kuta/Tuban and Legian/Seminyak: Highest occupancy levels, with slight declines in ADR. 

• Jimbaran/Uluwatu: Highest ADR growth of 8%. 

• Ubud: Lowest occupancy levels, influenced by its location away from the airport and beach. 

Future Supply 

• Upcoming Hotels: 43 new hotels with approximately 7,000 rooms are expected to open within the next five years, primarily in the 3-star and 4-star categories. 

• Hot Spots: West Bali (Canggu and Tabanan) and South Bali remain key areas for new developments. 

Real Estate Market 

• Buyer Profile: Predominantly domestic investors due to foreign ownership restrictions. Demand from foreign buyers, especially from Australia and western countries, is expected to grow slowly. 

Market Dynamics: 

• Condominiums/Apartments: Concentrated in midscale to upscale tiers. 

• Villas: Mainly in the upscale to luxury tiers. 

• Management Programs: Increasing preference for properties with rental management programs. 

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