JLL Hotels and Hospitality Group's APAC Report October 2017 covers 25 key cities across Asia Pacific and provides the latest data on tourist arrivals, demand, supply and the market outlook and provides an update on notable new and upcoming hotels as well as recent hotel transactions. Here we look at their findings for tourism, demand, supply and the outlook for Bali.

Tourism

Bali continues to enjoy healthy growth in international visitor arrivals which increased 23.2% y-o-y as at YTD July 2017 to reach 3.4 million. All of the top ten source markets to Bali registered notable increases in demand except for Australia (-1.1%) and Malaysia (-5.7%). Albeit from lower volumes, significant growth was also registered from Russia (+62.9%), Canada (+28.2%) and the Philippines (+23.8%). At this pace, international visitor arrivals are expected to exceed the 5.5 million target set by the government.

Demand

As at YTD July 2017, Mainland China was the top source market for Bali, accounting for 26.3% of all international visitor arrivals. Mainland Chinese arrivals were up by 57.4% y-o-y. Second to Mainland China is Australia, which accounts for 18.9% of total arrivals, followed by India with 4.6% of the total. Arrivals from India enjoyed a notable increase of 44.0% y-o-y. Other major markets enjoying double digit growth are South Korea (+24.6%), USA (+19.4%), Germany (+18.6%) and the UK (+14.0%).

Supply

Approximately 750 rooms in six hotels have been added to supply in Bali in 2017 to date. Major additions include the 289-room Hotel Indigo Bali Seminyak, the 136-room Sol House Legian and the 75-room Best Western Premier Agung Resort Ubud.

Outlook

Recent improvements in air connectivity and new flight routes, notably from Europe and several Chinese cities, to Ngurah Rai International Airport have helped to support the strong growth in international tourism arrivals. Indonesia is targeting 15 million international tourists in 2017, and Bali is expected to account for around 40% of these as it remains the prime destination for foreign tourists.

Click here to download the full Hotel Destinations APAC Report October 2017

The report also focuses on other major cities and regions including Bali, Brisbane, Hong Kong, Osaka, Singapore and others.

To discuss the report or other Hotel research contact Frank Sorgiovanni head of research for JLL Asia Pacific

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