According to the United Nations World Tourism Organization (UNWTO) exports from international tourism hit USD 1.7 trillion in 2018.

This is a 4 percent increase over 2017 and the seventh year in a row tourism exports have grown faster than merchandise exports, accounting "for 29 percent of global service exports and 7 percent of overall exports of goods and services," say UNWTO.

In the Top 5

Tourism is now one of the top five global economic sectors with further growth clearly on the horizon.

But it seems tourism is also a reflection of a deeper trend. Zurab Pololikashvili, UNWTO Secretary-General, is quoted by eTurbo News as saying “rather than growing in volume we need to grow in value."

Both emerging and advanced economies around the world are benefiting from the rising income tourism brings, which "translates to jobs, entrepreneurship and a better situation for people and local economies, while reducing trade deficits in many countries,” added Pololikashvili.

eTurbo News claim the amount spent by travelers hit USD 1,488 billion in 2018, plus an additional USD 256 billion being spent on transport services.

OTA's versus Airbnb

Antara News recently reported Indonesia's Minister of Tourism, Arief Yahya, as telling local news wires the government is projecting tourism foreign exchange earnings to hit USD 18 billion in 2019.  Although short of an earlier prediction of USD 20 million for 2019, it is still a significant amount of money.

Hotels, Resorts, Online Travel Agencies (OTA's) and the likes of Airbnb and HomeAway are locked in a heated battle for a slice of this action and places like Bali are on the front line. But at times that line can be blurred.

Some of Bali's most spectacular locations are serviced by private luxury villas and available on Airbnb. Image by Joel Vodell on Unsplash.

Hospitality.Net are reporting Airbnb's meteoric rise is largely because the platform was able to "avoid many of the legal requirements placed on hotels," read paying taxes (or not.) Now however, a growing number of cities and destinations around the world have either restricted or outlawed the platform.

Los Angeles, Amsterdam, Paris and Vancouver, for example, have already passed laws restricting Airbnb rentals. Last July, Palma de Mallorca became the first city in Spain to ban Airbnb. San Francisco has put strict rules in place for short-term rentals this year and "in most American cities, short-term rentals to tourists are illegal in residential neighborhoods," say Hospitality.Net.

The result, say industry observers, is for Airbnb to shift into 'hoteling' by offering hotel rooms and loyalty programmes, an initiative that is likely to cause additional headaches for hotels who see Airbnb as their biggest threat.

Bali clamping down on illegal operators

Gapura Bali reported last year, the intention of Bali's administration to begin clamping down on Airbnb as well. The report claimed authorities in Badung were intensifying the search for unlicensed accommodation businesses (including hostels, homestays, hotels, rented houses and villas) to "ensure operators comply with laws and regulations, which are in place to protect communities and employees working in the hospitality industry, and to clamp down on tax avoidance." 

With the global tourism industry growing so fast and offering such lucrative potential it's clear something needs to give way or a balance needs to be found. Nevertheless, opportunities are certainly there, especially in a place like Bali.

Bali as a family friendly destination

One of the leading OTA's, Agoda, recently reported their findings of travel trends claiming Asian destinations were becoming more popular for Middle Eastern and European travelers, with Bali joining this year's top ten destinations for the first time. In Agoda's report, Bali is described as being "a perfect spot to bring the whole family," offering everything from mountains, beaches, shopping and spas to first class cuisine.

Agoda say, Bali is "a perfect spot to bring the whole family." Image by Pexels from Pixabay.

Competition is stiff.  AirDNA, the leading provider of global short-term vacation rental data and analytics, tracks the daily performance of over 10 million listings in 80,000 markets globally and their data shows there are more than 42,000 active rentals in Bali listed from Airbnb and HomeAway with 7 percent quarterly growth since 2017 with an average occupancy of 57 percent at an average daily rate of USD 144.

As UNWTO have suggested, the secret for future sucess is in providing value. And if stakeholders in Bali's tourism industry (primarily hotels, resorts and villas) began to act on this and roll out initiatives that enhanced customer experiences, it could be a bright future indeed.

At a glance:

• UNWTO report global tourist arrivals increased by 6 percent and receipts increased by around USD 100 billion in 2018
• Airbnb report Asia and the Pacific experienced 7 percent growth in tourism receipts in 2018
• Tourism exports grew faster than merchandise exports in 2018 (+3 percent)
• AirDNA report more than 42,000 active holiday villa listings in Bali, with almost 18,000 of these in North Kuta, Seminyak and Canggu alone
• OTA's commission generally ranges from 10 to 20+ percent versus the 3 percent charged by Airbnb

Sources: Agoda, PR Newswire, eTurbo News, Airbnb, Antara News, AirDNA

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