Bali set an ambitious target for 2018 of 6.5 million foreign visitor arrivals, which was an 18% increase on an earlier projection from 2017. The eruption of Gunung Agung, however, negatively impacted 2017's projected numbers, especially as travel warnings were imposed by a number of countries as a result.

February 2018 saw a YoY drop of incoming foreign visitors by 22.3% but this figure has risen substantially since then and the latest foreign visitor arrival figures released from the Bali Tourism Office for Q1/2018 would indicate Bali is back on track to achieve its original target of 6.5 million foreign arrivals in 2018.

A number of major international events are being planned in 2018, including the IMF-World Bank Annual Meeting scheduled for October, and these are expected to lift the island's overall occupancy numbers.

Colliers predict hotel occupancy will reach an average of 73% in 2018, an increase over last year's 68% and average room rates will also rise from USD 113.50 to USD 115.

Click here to access and download the Colliers Quarterly: Bali Hotel Q1 2018 report​.

New hotels

The report noted that there has been an increase in hotel developments in Bali, which is likely to continue as hotel developers continue to be keen to develop more hotels in Bali.

An additional 2,530 new rooms are expected in 2018, of which 1,368 will be 5-star hotel rooms and 1,162 will be 4-star hotel rooms. Interestingly the development of 3-star hotels will be limited and no new properties are expected in 2018.

Five new 4 and 5-star hotels were completed in Q1/2018:

• The Element in Ubud
• Marriott's Bali Nusa Dua Gardens in Nusa Dua
• Como UMA Canggu
• Renaissance Bali Resort & Spa Uluwatu
• Radisson BLU Bali Uluwatu

And there are many more in the pipeline, slated for completion through to 2019 including:

• The Waldorf Astoria Bali Uluwatu
• Hyatt Regency Bali in Sanur
• Shangri La's Nusa Dua Resort & Spa
• Aloft in Seminyak and Kuta
• Jumeirah in Jimbaran

Colliers suggest this shows confidence in the hotel sector, especially as there are already a large number of hotel rooms already available on the island and local government regulations, which tend to limit new hotel development permits, are in place.

At a glance:

• 2,530 extra 4 and 5-star hotel rooms will be available in 2018.
• 5 new hotels were completed in Q1/2018 (4 and 5-star).
• Average occupancy will reach an average of 73% in 2018.
• Average Room Rates will rise from USD 113.50 to USD 115 in 2018.

Source: Colliers International Indonesia

Bali's second airport

The plan for a new airport in North Bali is likely to move forward, say Colliers, despite the debate between central and local governments. The hope is the development of a new airport will create a more balanced distribution of resources and income between Bali's different regencies by reducing the current concentration in the southern part of the island.

Click here to access and download the Colliers Quarterly: Bali Hotel Q1 2018 report​.

Cruise ships

Data from the Bali Provincial Statistics Centre indicates the number of visitors entering Bali through the port of Benoa has been declining over the last two years, but this is changing and the cruise ship market in Bali is growing. The Bali Provincial Tourism Office reported that 68 cruise ships visited the ports of Benoa and Celukan Bawang in 2017 and based on information from the Benoa Port Authority, 38 cruise ships arrived there in H1 2017.

Muslim travellers

One important and emerging market for Indonesia's tourism industry in general is that related to Muslim travellers, particularly from the Middle East. The Master Card Global Muslim Travel Index 2017 announced Indonesia was ranked the world's third most popular country for Muslim travellers with a score of 72.6 behind Malaysia and the United Arab Emirates.

Source: Colliers International Indonesia - Colliers Quarterly: Bali Hotel Q1 2018, May 2018

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