Bali is among the top provinces in Indonesia for growth in hotel room sales and supply across the past five years, new research has shown.

Data from advisory firm Hotel Investment Strategies has been used to rank the best provinces in Indonesia for hotel growth from 2014-2019, while also listing regions where supply and room sales have slowed. 

The fastest growing provinces for growth in room-nights sold for the past five years (CAGR % 2004 – 2019) were:
# 1 Nusa Tenggara Timur – 21.1%
# 2 Banten – 20.4%
# 3 Lampung – 20%
# 4 Bali – 19.4% and
# 5 Jawa Barat – 18.2%

According to the report, Bali had the fourth-fastest growth in room-nights sold for the past five years at 19.4 per cent (Compound Annual Growth Rate), and the second-fastest growing province for growth in room supply for the past five years at 19. 5 per cent (Compound Annual Growth Rate).

Annual Supply and Demand Growth for Indonesia's star-rated hotels between 2014 and 2019. Source: Hotel Investment Strategies.

Hotel Investment Strategy CEO Ross Woods said a supply/demand imbalance experienced by Indonesia's market last year was exacerbated by the differential growth rates in Bali and Jakarta- the two largest markets in the county.

"Supply grew by 32.5 per cent and 19 per cent for Bali and Jakarta respectively, while demand grew less strongly for Bali and Jakarta at 22 per cent and 4.6 per cent respectively," he said.

"While the demand for star-rated hotel accommodation across the country grew by a CAGR of 13 per cent over the past five years, growth rates varied widely between the provinces."

Nusa Tenggara Timur was the fastest-growing province for room-nights sold with 21.1 per cent CAGR, while Banten had the greatest supply growth at 20.5 per cent. 

Click here to view the full report.

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