Increasing flight connectivity, visa-free policies and toneddown supply growth over the last year led to excellent performance across the market; YTD October 2017 RevPAR performance was up 7% compared to the same time last year, on the back of healthy ADR and occupancy growth.
China took over as the number one foreign feeder market for Bali, surpassing Australia and growing by a whopping 59% per YTD September 2017 figures.
Just when all seems to be fine, alas, nature played a better hand. Mt Agung awoke and rumbled causing concerns and then eventually erupted sending waves of panic across the island and shutting down Ngurah Rai International Airport for a few days.
Though the airport has since re-opened and flights have resumed operations (even China flights in early January due to Chinese
government travel warnings, PLEASE let this be a lesson to destinations seeking and becoming reliant on one source market!), worried travellers cancelled year-end and New Year trips to Bali.
The media did everything it could to stoke the fear fire, without any intention I’m sure, filling its 24-hour coverage liberally using terms such as mass evacuation, impending eruption, global climate impact etc. As the peak holiday season loomed, Bali was a ghost-town - mirroring Soldier Island - visitors disappeared…
Bali Visitor Arrivals
2016 was a solid year for Bali, with international and domestic visitor arrivals recording double-digit YoY growth – 23% and 21% respectively. With increasing direct flight connectivity, visa exemptions and government promotion, Bali continued the roll for the first three quarters of 2017.
YTD September 2017 foreign arrivals grew a further 25% to 4.6 million during the same period last year. Full steam ahead, the Island of the Gods looked set to achieve its target of 5.5 million foreign visitors by the end of 2017.
This accounts for 40% of Indonesia’s ambitious total foreign arrivals for 2017.
Alas, in September 2017, increasing seismic activity at Mt Agung caused widespread panic in Bali. Alert levels were raised and villagers were forced to evacuate for fears of an eminent eruption.
The first eruption finally occurred in late November 2017, dusting the surroundings with dark ash and forcing Ngurah Rai International Airport to close. Although the airport opened a few days after, the damage had already been done. Fears of an even bigger eruption rerouted concerned tourists to other destinations as the peak holiday season arrived.
Furthermore, the Chinese government grounded airlines destined to fill Bali’s beds with Chinese FIT and groups.
Read the full report here.
About C9 Hotelworks
C9 Hotelworks is led by founder and Managing Director Bill Barnett, who brings over 30 years' experience in the Asian hospitality and real estate sectors.
Prior to founding C9 in 2003, Bill held senior executive roles in hotel operations, development and asset management. He is considered to be a leading global authority on hotel residences, and has sat at almost every seat around the hospitality and real estate table.
Bill promotes industry insight through regular conference presentations at key events and contributes to numerous industry publications. www.c9hotelworks.com
