The number of hotel rooms in Bali is in a serious state of over-supply, yet construction of new hotels in the southernmost regency of Badung continues apace.
Bali’s hotel occupancy rebounded last year, rising more than 4% following a challenging 2015. But at what cost?
Bali has an estimated supply of 125,000 rooms. Continuing, he extrapolated that if this total is multiplied by 365 days, Bali has a resulting annual inventory of 45.625 million room nights. With Bali currently achieving around 10 million domestic and international visitors staying 2 to a room for an average 3.2 nights, then only 16 million room nights are consumed in a single year.
A 23-year-old Singaporean has died after falling from his hotel room on Indonesia’s Bali island.
Thousands of people flock daily to the centuries-old, sacred Hindu temple at Tanah Lot, a rock formation that juts into the Indian Ocean. An island at high tide and flanked by sheer cliffs, it’s among Bali’s most photographed sites, particularly for the mesmerizing sunsets that transform the waters into a shimmering orange vista.
The Indonesian business partner of the Trump group has pledged to respect Hindu traditions and follow building height restrictions at a luxury hotel and golf resort it is developing near a temple on the island of Bali, as quoted from Reuters.
Hary Tanoesodibjo’s MNC group has been buying up land around the existing Nirwana resort at Tanah Lot, a relatively undeveloped area about an hour’s drive north of the main tourist strip at Kuta, as quoted from ABC News.
The current low occupancy rates of Bali Hotel has resulted in what PHRI-Bali officials term as “unhealthy competition” and is attracting low quality tourists to the Island.
Besides a moratorium on new hotel construction, the alliance also urged the government to consistently enforce Bali’s spatial planning and culture tourism bylaws, which were aimed to protect the region’s culture and nature from uncontrolled development.
With an estimated 130,000 rooms for rent every night in Bali, many of which remain empty, it should be apparent to even the most casual observer that Bali is in a critical oversupply situation.