
Market Report
Bali Hotels & Branded Residences 2021
The year 2020 was particularly challenging for Bali's hotel and tourism industry due to the COVID-19 pandemic. While international arrivals plummeted, the domestic market provided a vital lifeline for the island's tourism sector.
The outlook for recovery has improved with the rollout of vaccinations beginning in February 2021.
Visitor Arrivals
International arrivals to Bali dropped dramatically to around 1 million in 2020. In contrast, domestic arrivals, although down 56% year-over-year, still accounted for approximately 4.5 million visitors. The government imposed large-scale social restrictions, leading to significant decreases in MICE events and other gatherings. However, domestic travel continued, supported by sea and land-based arrivals, which became more popular due to complications in air travel.
Hotel Performance by Rate Segment
Occupancy levels for all hotel segments were severely impacted, reaching rock bottom during the second quarter of 2020. However, ADR improved slightly towards the year’s end.
- Overall:
- Occupancy: 22% (2020) vs. 73% (2019)
- ADR: IDR 1,730K (2020) vs. IDR 1,917K (2019)
- RevPAR: IDR 379K (2020) vs. IDR 1,397K (2019)
- Luxury (>USD 350):
- Occupancy: 18% (2020) vs. 67% (2019)
- ADR: IDR 6,823K (2020) vs. IDR 6,437K (2019)
- RevPAR: IDR 1,219K (2020) vs. IDR 4,293K (2019)
- Upper Upscale (USD 151 – 349):
- Occupancy: 21% (2020) vs. 71% (2019)
- ADR: IDR 2,175K (2020) vs. IDR 2,609K (2019)
- RevPAR: IDR 453K (2020) vs. IDR 1,841K (2019)
- Upscale (USD 101 – 150):
- Occupancy: 19% (2020) vs. 72% (2019)
- ADR: IDR 1,532K (2020) vs. IDR 1,747K (2019)
- RevPAR: IDR 299K (2020) vs. IDR 1,263K (2019)
- Midscale (USD 50 – 100):
- Occupancy: 26% (2020) vs. 75% (2019)
- ADR: IDR 832K (2020) vs. IDR 1,007K (2019)
- RevPAR: IDR 214K (2020) vs. IDR 758K (2019)
Performance by Location
- Occupancy: Kuta/Tuban and Ubud recorded the highest occupancy rates, driven by their popularity among domestic tourists and the availability of dining and entertainment options.
- ADR: Nusa Dua/Tanjung Benoa saw a 5% increase in ADR despite the pandemic. The ADR performance across all areas remained relatively stable.
- RevPAR: Poor occupancy led to weak RevPAR across all locations.
Upcoming Hotel Supply
Over the next five years, Bali is expected to add twelve 5-star, six 4-star, and three 3-star hotels, totalling approximately 3,569 rooms—a 7% increase from the current inventory. Most new developments are in the luxury segment and are currently on hold pending market recovery.
Hotel Residences Market
The pandemic has driven a shift in Bali’s real estate market, with increased demand for luxury villas from domestic buyers. The island’s real estate sector saw substantial activity, especially in prime properties in Greater Canggu and South Bali.
- Villa Sales: The villa market is buoyed by domestic buyers, while foreign buyers residing in Indonesia are adopting a work-from-home lifestyle, driving demand in Canggu and West Bali.
- Land Sales: High competition for prime sites and luxury-oriented villas persists, with significant activity in residential project development.
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