Research &

Forecast Report
1st Half Year 2014

Bali Hotel
Property Market Report

Accelerating success.

Ferry Salanto | Associate Director - Research

Hotel Sector
Economy and Tourism
Based on data from the World Travel & Tourism Council
(WTTC), the contribution of the tourism industry to Indonesias
GDP has been positive suggesting that this industry is on track.
Since 2011, the tourism industry continues to make a relatively
positive contribution to the Indonesian GDP. From 2011 to
2012, it slightly increased by 0.1% to reach 3.01%. In 2013, the
increase was moderate to 3.10% and in 2014, the contribution
increased slightly to 3.21%. Given the positive trend, the tourism
industry in Indonesia has the potential to become one of the
major revenue sources of the country.

Direct Contribution from Tourism Industry and Its

Percentage of Shares Toward the GDP

GDP Contribution (in IDR Billion)

This quarter, the occupancy rate of hotels in Bali was similar to

Jakarta i.e. 57.4%, down from 68.2% as of the end of 2014. Nevertheless,
the ADR is much better than Jakarta at USD128.38 even though this
reflected a decrease from USD134.43 at the end of last year. By end of
2015, total hotel rooms in Bali will have grown to 39,605 rooms with
additional rooms totaling 42,154 rooms by the end of 2018.

350,000

3.25%

300,000

3.20%
3.15%

250,000

3.10%

200,000

3.05%
150,000

3.00%

100,000

2.95%

50,000

2.90%

2.85%
2010

2011

2012

Tourism Contribution to GDP

Source: World Travel & Tourism Council

2013

2014

Percentage of GDP

40
20

3-star

4-star

2015F

2014

2013

2012

5-star

Source: Colliers International Indonesia - Research

Cumulative Supply of Star-Rated Hotel Rooms in

Bali
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000

4-star

Source: Colliers International Indonesia - Research

Research & Forecast Report | 1H 2015 | Hotel | Colliers International

5-star

2015F

2014

2013

2012

2011

2010

2009

3-star

2011

2010

2009

2007

2008

2005

In 4-star rated hotels, quite a few new hotels opened in 1H 2015.

Alaya Hotels & Resorts opened their second hotel in Kuta Bali
with 116 rooms. The Swiss-BelHotel Group opened two hotels
in Petitenget with 111 rooms and one in Tuban providing 324
rooms. Holiday Inn Group has opened a 171-room hotel in
Benoa. The Jimbaran area has a new 4-star hotel, Bali Paragon
which provides 377 new rooms. With five new 4-star hotels, the
total supply of this hotel category in Bali reached 11,200 rooms.

60

2008

The reduction of the hotel room supply in Bali as a result of the

interim closure of Hyatt Regency Sanur was counterbalanced by
the opening of three other 5-star hotels. Ritz-Carlton, located in
the hilly Nusa Dua area added 313 rooms. Another new luxury
hotel, the Maya Sanur Resort & Spa provides 103 rooms. And the
new Watermark Hotel & Spa in Jimbaran has 143 rooms. All in
all, by the first semester of 2015, there were 559 additional rooms
in the 5-star category.

80

2007

In early 2015, Hyatt Regency Sanur Bali temporarily closed for

24 months of renovation. They expect to re-open in 1Q 2017 thus
temporarily reducing by 389 hotel room count in Bali, and in
particular in Sanur.

100

2006

Fairmont, one of the big hotel operators, announced their

takeover of Regent Bali Sanur Hotel. They officially opened the
doors in November 2014. This is the first Fairmont property in
Indonesia and Bali and has 120 rooms.

120

2006

New hotel projects under construction seem to be speeding

up their finishing progress to be open for the summer holiday
from June to September in an attempt to attract more European
guests. Amid concerns of a hotel moratorium, which limits the
number of hotel developments in the southern part of Bali and
which requires developers to build hotel projects of at least
4-stars with certain criteria that must comply with the regulation,
developers are pushing to meet the completion schedule. The
hotel moratorium in Bali that was basically issued in early 2011 at
the governor level, was designed to tackle the southern regions
room oversupply, as well as guiding investment to other regions
in Bali. However, new hotels continue to be built in southern Bali
as the moratorium was rejected by the head of the regency and
the city mayor, who have the authority to issue hotel permits.

Cumulative Supply of Star-Rated Hotel Projects in

Bali

2005

Star-Rated Hotel

Hotel Developments in Pipeline

Name of development

star
rating

str global
equivalent rate

region

No. of rooms

projected
completion time

Padma Puhu Resort

Not defined

Ubud

149

3Q 2015

Mandapa - Ritz-Carlton Reserve

Luxury Class

Ubud

60

3Q 2015

Alila Hotel

Upper Upscale Class

Seminyak

240

3Q 2015

Preference Jivanara

Not defined

Ubud

42

1Q 2016

Mandarin Oriental

Luxury Class

Bukit Pandawa

121

4Q 2016

Nusa Dua Circle Avani

Not defined

Nusa Dua

192

4Q 2016

Mvenpick Resort & Spa Jimbaran Bay

Upscale Class

Jimbaran

270

2016

Yoo Le Pang Resort

Not defined

Klungkung

115

2016

Fairmont Hotels & Resorts - Bali

Luxury Class

Bukit Jimbaran

170

2016

Hyatt Regency

Upper Upscale Class

Sanur

389

1Q 2017

Solis Capella Resorts Hotel

Not defined

Ubud

108

2017

Preference Batu Belig

Not defined

Badung

120

2017

Six Senses Bali

Luxury Class

Uluwatu

Rosewood Tanah Lot

Luxury Class

Tanah Lot

Waldorf Astoria Bali

Luxury Class

Bukit Pandawa

The Langham Place

Luxury Class

Ungasan - Uluwatu

173

2017

Four Points by Sheraton

Upscale Class

Kuta

186

3Q 2015

Novotel - Airport

Upscale Class

Ngurah Rai Airport

214

3Q 2015

Prama Stala Ubud

Not defined

Ubud

145

4Q 2015

Worldhotel Balangan

Upper Upscale Class

Balangan

85

2015

Harris Benoa

Upscale Class

Benoa

280

2015

Park Hotel Nusa Dua

Upper Upscale Class

Nusa Dua

151

2015

Bedrock

Not defined

Kuta

156

2015

Indigo Hotel

Upscale Class

Seminyak

280

2015

Meritus Bali Seminyak

Upper Upscale Class

Seminyak

181

2016

Harris Resorts - Beach Cove

Upscale Class

Jimbaran

300

2016

Cordis Resort

Not defined

Nusa Dua

250

4Q 2018

Preference Nusa Penida

Not defined

Nusa Penida

70

2019

Kila Infinity 8

Not defined

Jimbaran

180

4Q 2015

Artotel

Not defined

Sanur

400

4Q 2015

Potato Head Boutique Hotel - The Katamama

Not defined

Seminyak

60

2015

97

2017

120

2017

96

2017

Source: Colliers International Indonesia - Research and STR Global

Budget Hotel
The amount of new budget hotel development in Bali was not as
high as it was last year. By the end of 2015, there will be 356 new
budget hotel rooms in Bali, bringing the supply to 1,765.

Tauzia Management, one of the biggest budget hotel operators,

dominates the market, not only in Jakarta but also in Bali. With
the existing POP! Hotel there will be three hotels under Tauzia
Management built in Bali, most probably in 2015. Other brands
are Zest by Swiss-Bel and Fave by Aston, which will invigorate
the budget hotel market in Bali going forward.

Future Budget Hotel Development in Pipeline

Name of development

str global rate

location

No. of
rooms

projected
completion time

POP! Hotel Riverview

Economy

Kuta

80

2015

POP! Hotel Benoa

Economy

Benoa

156

2015

POP! Hotel Drupadi

Economy

Seminyak

120

2015

Source: Colliers International Indonesia - Research and STR Global

Research & Forecast Report | 1H 2015 | Hotel | Colliers International

Cumulative Supply of Budget Hotel (by Number of

Projects) in Bali

Performance
Demand

20

Bali remains the favourite tourist destination in Indonesia,

both for domestic and foreign guests. The I Gusti Ngurah Rai
International Airport was just honoured as the worlds third best
airport for service in the category of airports with 15 to 25 million
passengers per year. This airport was previously in the seventh
position.

16

12

2015

2014

2013

2012

2011

2010

Source: Colliers International Indonesia - Research

Cumulative Supply of Budget Hotel (by Number of

Rooms) in Bali
2,000

According to the tourism data from the Statistics Office, Bali is

very popular among Australians. By the end of 2014, the number
of Australian tourists visiting Bali reached more than 900,000
and it keeps increasing every year. The Bali Nine execution,
which raised tensions between the Indonesian and Australian
governments, impacted the tourism sector, especially for
Australian guests. By the end of May, the YoY direct arrivals of
Australians to Bali shrank by 4.03% YoY to 76,589 guests. The
data showed that direct arrivals of Australian tourists to Bali also
slightly decreased by 0.33% month-on-month (MoM).
Recently, Bali has become popular with Chinese tourists.
Since 2005, the number of Chinese guests visiting Bali has kept
increasing, now representing 19.28% of the total. Most likely,
the dominance of Australians coming to Bali will be challenged
by Chinese tourists. This is further supported by the leading
national airline, Garuda Indonesia, opening a direct route from
and to Guangzhou, China.
The top five countries contributing the highest numbers of
visitors to Bali based on the most recent data include Australia,
China, Japan, Malaysia and South Korea. Geographically, these
Asia Pacific countries are in close proximity to Bali and this is
further propelled by the availability of many direct international
flights to and from Ngurah Rai International Airport. Other
potential target markets in the future according to the Statistics
Office (BPS) data are Hong Kong, India, New Zealand, Canada
and the Philippines.

1,600

1,200

800

400

2015P

2014

2013

2012

2011

2010

Since 2005, the number of foreign visitors coming to Bali

contributed more than 20% of the total foreign visitors to
Indonesia. Recently, the number of foreign visitors to Bali has
increased and reached 40% of total visitors to Indonesia.

Source: Colliers International Indonesia - Research

Research & Forecast Report | 1H 2015 | Hotel | Colliers International

Number of Visitors by Country of Origin

The Comparison of Foreign Visitors Coming to Bali

and Indonesia (excluding Bali)

1,200,000

100%

1,000,000

90%

800,000

80%

600,000

70%
60%

400,000

50%

Other

Russia

USA

2014

2013

Indonesia

2015YTD

Bali

2012

2011

2010

2009

2015YTD

2008

Netherlands

Germany

2014

0%

2007

2013

Singapore

France

United Kingdom

Taiwan

South Korea
2012

10%

2006

2011

20%

2005

2010

China

30%

Malaysia

Japan

40%

Australia

200,000

Source: Statistics Bureau Office (BPS), Bali

Source: Ministry of Tourism and Bali Provincial Tourism Office

The Comparison of Visitors to Bali and Indonesia

10,000,000

Tourism and Travel Investment Growth in Indonesia,

Malaysia, Vietnam, Thailand and Philippines
80%

8,000,000

60%
6,000,000

40%
20%

4,000,000

2014

2013

2012

2011

2010

2009

2008

2007

2006

-20%

2,000,000

2005

0%

-40%

Source: Ministry of Tourism and Bali Provincial Tourism Office

2014

2013

2012

2011

Bali

2015YTD

Indonesia

2010

2009

2008

2007

2006

2005

-60%
-80%
Indonesia

Malaysia

Vietnam

Thailand

Philippines

South East Asia

Source: World Travel & Tourism Council

Based on the World Travel & Tourism Council (WTTC) report,

the amount of Travel & Tourism investment in Indonesia
represents 29% of the total Southeast Asia total investment of
USD14.93 billion.
In terms of the growth of investment in the Travel & Tourism
sector during the last five years, Malaysia leads with 6.37%
growth, followed by Indonesia with 4.53%, Vietnam with 3.14%,
the Philippines with 1.89%, and Thailand with 0.52% growth.

Research & Forecast Report | 1H 2015 | Hotel | Colliers International

Foreign Visitor Spending during Their Stay in

Southeast Asian Countries (USD billion)
50.00

Average Occupancy Rate

45.00

100%

40.00

90%

35.00

(in USD billion)

Occupancy

80%

30.00

70%

25.00

60%

20.00
15.00

50%

10.00

40%

5.00

30%

Indonesia

Malaysia

Thailand

Philippines

20%

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

0.00

10%
0%

Vietnam

2013
Bali

2014
South Bali Area

1Q 2015

2015YTD

South Central Bali Area

Source: World Travel & Tourism Council

Source: STR Global

In terms of the amount of money that tourists spend during

their stay, Indonesia is far below Thailand and Malaysia. Foreign
guests spend almost four times as much in Thailand and twice as
much in Malaysia as they do in Indonesia.
According to the WTTC report, in Indonesia, domestic guests
spend three times more than foreign guests on average. Of the
total guests, in terms of purpose of the visit, guests coming for
leisure spend three times more than guests coming for business,
most likely because, in general, leisure activities take longer than
business activities.

Comparison of Total Spending between Leisure and

Business Purposes in Indonesia (IDR billion)

The overall Average Occupancy Rate (AOR) for the first six
months of 2015 weakened. Generally, this is not the peak season
in Bali. In 2013, the AOR for the Bali area was 65.95% and moved
upward in 2014 to 68.20%. During 1H 2015, the overall AOR was
57%, a drop of 8.95% YoY. The disparity in the growth of hotel
supply and demand in Bali during the first semester has resulting
in a drop in the occupancy rate.
The AOR in South Bali slightly decreased to 56.8% due to the new
operation of the hotels mentioned above, which are located in
Sanur, Jimbaran, Kuta, and Nusa Dua.

50.00
45.00

(in billion IDR)

40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00

Domestic

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

0.00

Foreign

Source: World Travel & Tourism Council

Research & Forecast Report | 1H 2015 | Hotel | Colliers International

Average Daily Rate

Average Daily Rate
USD 200.00
USD 180.00
USD 160.00
USD 140.00
USD 120.00
USD 100.00
USD 80.00
USD 60.00
USD 40.00
USD 20.00
USD 0.00
2013
Bali

2014

South Bali Area

1Q 2015

2015YTD

South Central Bali Area

Source: STR Global

The Average Daily Rate (ADR) for hotels in Bali has been
decreasing in the last three years. The ADR in 2013 was USD144.33
and dropped in 2014 by 6.9% to USD134.43. In the first semester
of 2015, the ADR was USD124.07 reflecting a 4.12% drop YoY.

Research & Forecast Report | 1H 2015 | Hotel | Colliers International

502 offices in
67 countries on
6 continents

Primary Authors:
Ferry Salanto
Associate Director | Jakarta
62 21 3043 6730
Ferry.Salanto@colliers.com

United States: 140

Canada: 31
Latin America: 24
Asia: 39
ANZ: 160
EMEA: 108

$2.3

billion in
annual revenue

Colliers International Indonesia

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Jakarta 12920
Indonesia
TEL 62 21 3043 6888

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managed

16,300

professionals
and staff

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Accelerating success.