The booming Bali hotel market will 'defy gravity' and absorb 12,000 new hotel rooms over the next four years without prices or occupancy collapsing, according to a new report by Horwath HTL and C9 Hotelworks.

"The strong performance of Bali hotels is likely to continue with the new airport and infrastructure improvements despite new supply," says Horwath HTL Director Rio Kondo.

Cranes at Kuta Beach

He believes it is also "likely that that impressive stable of strong international brands opening in the ramp up to the APEC CEO summit (in Bali during October) will induce new demand."

However, the market mix is changing.

Bill Barnett from C9 Hotelworks says while Australian travellers continues to be a key demand driver, "the market is seeing a defined shift to short and medium-haul regional markets.

"China is playing a far larger part in the mix while the traditional Japanese market has eroded.

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