Denpasar, Bali, May 2, 2023: Bali remains one of the most popular holiday destinations in the world, but both before and after the global pandemic, branded residences lag behind other major Southeast Asia leisure market.
The observations are part of a new joint report with Horwath HTL called Bali Hotels and Branded Residences 2023, released on May 1, which tracks the island’s resort real estate market since the Covid-19 pandemic in 2020 .
According to the report’s forecasts, the outlook for 2023 is positive as Bali continues to attract tourists with its picturesque scenery and exotic culture.
“The hospitality industry has been on a rollercoaster ride for the past few years, but the first two months of 2023 offer a silver lining, pointing to a stunning recovery for the industry.
“Despite the odds, hotels in Bali not only surpassed the 2022 figures, but also broke the 2019 pre-pandemic benchmark.
“With no travel restrictions (except for part of the first quarter of 2023 from China), the island has seen a wave of tourists and the latest indicators paint a promising picture for the industry.
“As of February 2023, Bali’s overall occupancy rate reached 62.8%, which is only 1.8 percentage points lower than the February 2019 figure.”
There has been a huge improvement in ADR, with a 30% increase in rupiah and a 20% increase in USD compared to pre-pandemic levels in 2019. The small decline in occupancy combined with the significant increase in ADR resulted in a record RevPAR of $84, surpassing the $72 and $16 recorded in 2019 and 2022, respectively.
“Among the different hotel categories, upscale hotels showed the most significant improvement, surpassing the 2019 indicators in all aspects. Sanur performed well with significant improvements in hotel locations.”
C9 Hotelworks’ research for the remainder of 2023 and the full year of 2024 suggests a significant reboot of the branded residential market in Bali. Raffles Bali in Jimbaran is an iconic villa project due to launch later this year. There are several larger stranded mixed-use projects currently in planning, while new greenfield projects are in early development stages,” the report concluded.
To read and download the full report click here
