Jakarta, CNBC Indonesia – Bali tourism has started to revive after the Covid-19 pandemic. After almost 4 years of 'bleeding' due to the domino effect of the pandemic, which was accompanied by thousands of hotel rooms that had to be cut.
“In 2020 to 2023, there were only 817 additional rooms in Bali, but there was a reduction of 1,591 rooms due to hotel closures,” said Colliers' Q4-2023 report, quoted on Tuesday (16/1/2024).
This reduction in hotel room supply should contribute to increased competitiveness among hotels. However, the availability of hotel supply in Bali indirectly shows continued investor interest, and the return of tourist visits shows the revival of Bali's tourism sector.
In 2023, the performance of the Bali hotel industry will be better than in 2020 to 2022. Improvements in hotel performance in Bali will begin in mid-2022, coinciding with the relaxation of travel regulations. In this period there will also be a surge in tourist visits, especially from abroad, in 2022. Bali continues to be the destination of choice for offline and MICE activities, thus contributing significantly to hotel occupancy.
The year 2023 is marked by many MICE activities and various offline events that attract many visitors. This surge in activity is not only limited to the government sector, but also involves the active participation of corporate entities.
Even though it has not fully recovered, statistically there has been a consistent increase in the number of foreign and domestic tourists visiting Bali in the last three years.
The Asia Pacific and European markets collectively contribute significantly to Bali's international market. Currently, these markets are showing signs of recovery. The Australian market holds a dominant position with 50%. However, it is estimated that Australian tourists will switch to other regions.
“Even though Australia dominates international tourist visits to Bali, it seems that for the 2023-2024 summer holidays, Indonesia is not the favorite destination for many Australians. A large number of Australians choose to spend their holidays elsewhere, especially in New Zealand, Europe, Japan, “Thailand and Singapore are their top 5 destinations. Indonesia is the seventh choice along with America, Canada and China,” wrote Colliers.
Meanwhile, the number of tourist arrivals from major countries in the Asia Pacific, especially Japan and China, has not yet reached 50% of the figure recorded in 2019. Usually, China's market share ranges from 30% to 40%, competing closely with Australia.
Even so, Bali's main market remains local tourists who contribute more than 60% to the total number of tourists in Bali. 2023 will be Bali's highest performing year, reflecting a revival especially in areas such as Ubud and Kuta-Legian.
[Gambas:Video CNBC]
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