Hotel investors and operators are showing a renewed interest in Bali as inbound tourism to the island continues to rebound strongly, according to Jones Lang LaSalle Hotels.
Mr Craig Collins, Managing Director Investment Sales Asia, commented, "Bali is red-hot at the moment. Preliminary statistics from top-tier hotels are indeed indicating a positive trend for October with year-on-year occupancy levels around 70%, and strong RevPAR (Revenue per Available Room) growth exceeding 80% for many hotels over the same period last year."
Bali has recently seen a launch of a number of luxury products, indicating the renewed interest in the five-star resort, villa and serviced apartment sectors.
"We are also seeing previously unrepresented hospitality brands now making an entrance driven largely by record-high visitor arrivals and the fast growing MICE (meeting, incentive, conference and events) market," added Mr Collins.
New entrants with developments underway include well-known brands such as St. Regis, W Hotels, Banyan Tree and Anantara.
Latest official tourism statistics provided by the Pacific Asia Travel Association show that inbound tourism to Bali is rebounding strongly with foreign visitor arrivals of 1.4 million arrivals over the first ten months of this year, up 34% year-to-date.
The continuing improvement in air access and the obvious benefits of the visa-on-arrival policy have contributed to strong growth particularly from newer markets such as China, India, Russia and the Middle East.
The proliferation of regional low-cost airlines (LCC) has also opened up the island to travellers from ASEAN destinations and the key source markets of Japan, Taiwan and South Korea. The ASEAN Open Sky policy that is due to take effect in 2009 will first involve air routes between capital cities, with regional destinations coming online most probably from 2011.
"The long-held appeal of this popular international tourist destination is drawing visitors back, and investors and operators are certainly keen on Bali's excellent growth potential," added Mr Collins.
"Efforts by the Ministry of Tourism and Culture to actively promote MICE events in Indonesian gateway destinations will also play a key role in establishing Bali as a competitive meeting destination and help sustain the recent upturn in occupancy levels," commented Mr Collins.
Bali is currently hosting some 10,000 delegates from over 180 nations for the United Nations Climate Change Conference. |