As with other studies, a recent Market Report from Horwath HTL and C9 Hotelworks confirms the continued solid growth Bali has seen over recent years as most star-rated hotels report higher occupancies and better room rates in both domestic and international markets.   

There has been exceptional growth with both China and India, something which is directly related to the introduction of more flights between both markets as well as a visa on arrival system for Indonesians going to India, making it even more feasible for the carriers. 

One interesting aspect of the report's analysis is that the Russian and Korean markets are not only returning but booming!

Click here to access and download the C9 Hotelworks and Horwath HTL Market Report, February 2018​.

Eruption disruption

The impact of Gunung Agung's recent eruption cannot be overstated. Many different segments were badly impacted with a large number of visitor cancellations in October, November and December 2017, with those hotels and resorts closest to Gunung Agung being hit hardest 

But from March 2018 onwards it appears that it is business as usual and a full recovery of most main markets has occurred. There is continued optimism moving forward and an expensive lesson has been learned on how to better prepare for, and handle, any future disaster management.

Gunung Agung eurpting in November 2017 leads to moves for better future disaster management

The growth of new hotels and residences

The supply of new hotel rooms has risen by around 15% with a total of 26 new resorts set to open in 2019-20, adding on close to 13,000 additional new rooms. 

The South and West coasts are still the preferred areas for investors.

The hotel residence market was also hit by the impact from Gunung Agung and the average number of units sold per month dropped, forcing investors to approach the market differently and quiet a few resorts launched vacation club and timeshare concepts. 

Most hotel residences are also looking for a larger international market to absorb new stock and even though there has been a significant drop the market is expected to improve buyers sentiments and positively impact sales.

Source: C9 Hotelworks and Horwath HTL Market Report, February 2018

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