Inbound demand skyrocketed in Bali this past year, leading to an uptick in hotel development interest from investors.
Since the pandemic, the tourism and hospitality sectors in Bali — which itself depends on tourism for more than 65% of its economy — have experienced major changes.
Bali’s international visitor arrivals have rebounded sharply from an all-time low of 51 at the height of the pandemic in 2021 to more than 6.33 million at the end of 2024, according to the Bali Hotels Association.
Arrivals in 2024 surpassed pre-pandemic numbers of more than 6.27 million in 2019, according to the association. Combined with domestic arrivals, the total number of visitor arrivals topped 16.45 million, compared to nearly 15.2 million in 2023, it added, with Australia, India and China its top three inbound markets.
According to CoStar data, Bali’s average daily rate in 2024 was 2,337,924 Indonesian rupiah ($233.79), compared to 1,506,792 rupiah in 2019. For the same period, revenue per available rooms was 1,705,473 rupiah and 1,040,694 rupiah, respectively.
Post-pandemic recovery initiatives introduced by both the Indonesian government and provincial government included grants and incentives of up to 3.7 trillion rupiah, or approximately $370 million, as well as tax-relief measures that included income-tax allowances and subsidies, targeting businesses within the tourism industry such as hotels, restaurants and travel agencies.
Besides leveraging on financial aid for businesses, Bali also started attracting digital nomads drawn to the island for its laid-back and affordable lifestyle.
By mid-2023, these efforts contributed to 5.6% economic growth in Bali.
Tourism recovery has resulted in a new set of challenges, however.
The post-pandemic resurgence fueled a wave of property investments, leading to rapid development. By late 2024, concerns were being raised over a potential oversupply in the commercial real-estate market and along with it, the impact of higher visitor-arrivals numbers.
In response, the Indonesian government declared a moratorium in September 2024 on new hotels, villas and restaurants to regulate tourism expansion, protect natural resources and negate the effects of rapid growth on local communities. Concerns arose over rising costs of living, increasing Western influence, environmental sustainability and cultural preservation of Balinese heritage.
The moratorium, which would have seen a ban on the development of new hotels, beach clubs and commercial tourism properties in popular resort areas such as Canggu, Uluwatu, Kuta, Legian, Seminyak and Nusa Dua, was thwarted in January by incoming Bali Gov. Wayan Koster in January.
Gottfried Bogensperger, area vice president and general manager of the 636-room Grand Hyatt Bali, said “ongoing efforts must be made to manage the local environment and resources cautiously, to ensure that Bali remains a sustainable destination for future generations."
“I believe it is crucial for authorities to approach development plans with caution to avoid the pitfalls of mass tourism, which has negatively impacted many beautiful locations around the world," he added.
Representing more than 155 hotels and resorts and more than 25,000 hotel rooms in Bali, the BHA has engaged in discussions with tourism stakeholders to address critical issues such as infrastructure improvements for long-term tourism sustainability; stricter regulations to curb illegal accommodations and unplanned development; enhanced sustainability efforts with a focus on waste management, environmental protection and responsible tourism; and strategic policies to balance economic growth with environmental and social responsibility.
Infrastructure improvements are planned to ease congestion in the south of the island, construct a second international airport to serve more than 32 million passengers in the north of the island and build a new toll road to connect the north and the south.
For the new airport, the goal is to complete one runaway by 2027.
Franklyn Kocek, the BHA’s chairman, said the association has a “commitment to ensuring that every guest experience aligns with Bali’s cultural, economic and environmental sustainability goals.”
New openings
Hotels continue to open in Bali, but they now have operations rooted in sustainability.
One new hotel, which opened in phases throughout 2024, is Nuanu Creative City. It has spaces dedicated to education, art and culture, health and wellness, nature, and living and lifestyle. The hotel has a commitment to preserve 70% of its land as green space.
It also has rooms, with one accommodations option being Oshom Bali, with 18 treehouse-style guest rooms.
There are five other options, all with small room counts.
Nuanu CEO Lev Kroll said the development “plans to invest an estimated $350 million over the coming years, with $150 million already allocated. … Investors from Europe, Asia and Australia are contributing to this funding.”
He said the development’s eco-friendly policies include a strict ban on felling large trees, a fuel-free vehicle zone and a reforestation initiative that saw more than 20,000 trees planted in 2024 alone.
The city also features a butterfly dome, orchid garden and botanical nursery, and more than 80% of its solid waste is recycled.
Kroll said in 2025 Nuanu is predicted to receive 3 million visitors, a considerable increase from the 500,000 it received in 2024.
Other reported key openings in 2025 include the 150-room Regent Bali Canggu; 216-room Anantara Dragon Seseh Bali Resort and 100-room JW Marriott Ubud Resort & Spa, while the 110-room Mandarin Oriental Bali is due in 2027.