Bali's continued growth as an international and domestic tourism destination has failed to stop a drop in occupancy rates for its star-rated hotels in 2019, new figures from Hotel Investment Strategies have revealed.

The advisory firm released its Brief Review of Bali Tourism this week, indicating international visitor arrival grew 3.8 per cent to 6,255,540 in 2019, up from 6,027,647 in 2018.

But the growth did not translate to its star-rated hotels which, according to the report, experienced a 5.6 per cent drop in occupancy rates- the fifth largest annual room occupancy drop since 1990.

Bali’s non-classified hotels ended 2019 with an average occupancy of 33 per cent, up two percentage points on 2018.

Hotel Investment Strategies Founder and CEO Ross Woods. Source: Hotel Investment Strategies

Annual average occupancies for these hotels have ranged from a low of 30.1 per cent in 2015 to a high of 36.9 per cent in 2013.

Hotel Investment Strategies CEO and Founder, Ross Woods, said the erosion of occupancy for star-rated hotels was the result of a "temporary imbalance" in the supply of and the demand for the accommodation venues.

"Given the underlying long term growth rates in both international and domestic tourists to Bali, any supply-demand imbalance is likely to be short-lived," he said.

"Despite a number of geopolitical issues impacting international travel in 2019, Bali’s resilience as a major tourist destination is demonstrated by its continued growth in international visitor arrivals." 

Click here to view the full report. 

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