BALI TOURISM BOOM CONTINUES — BUT A TWO-SPEED MARKET IS EMERGING
Bali’s tourism engine isn’t just running again — it’s accelerating.
A newly released 2025 market overview from global hospitality consultancy Horwath paints a clear picture: international demand is surging, hotel performance is strong, and investor appetite is shifting rapidly. But beneath the surface, a more nuanced story is unfolding — one of opportunity at the top end, and growing pressure in the middle.
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INTERNATIONAL TOURISM SURGES BACK
Bali welcomed approximately 6.95 million international visitors in 2025, marking a 10% increase on 2024 — a powerful signal that global demand for the island remains resilient.
Australia remains the dominant source market, contributing 1.63 million visitors, reinforcing Bali’s long-standing connection with Australian travellers.
China is rapidly re-emerging, with 537,000 arrivals and a 20% year-on-year increase, signalling a strong return of one of Bali’s most valuable tourism segments.
Domestic tourism also continues to underpin the market, with 9.6 million Indonesian visitors, helping smooth seasonal fluctuations and support occupancy across the year.
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HOTEL PERFORMANCE: STRONG — BUT UNEVEN
At a headline level, Bali’s hospitality sector is performing well:
•Average occupancy: 73%
•Peak occupancy: 86% (July)
•Average Daily Rate (ADR): $146
•RevPAR: $103
These figures place Bali in a strong position globally, particularly for a resort-driven destination.
But beneath these averages lies a growing imbalance.
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LUXURY SURGES AHEAD — MID-MARKET GETS SQUEEZED
The strongest gains are concentrated at the top end of the market.
Luxury hotel rates jumped 8% to $795 ADR, while upper-scale properties rose 4% to $285. Premium enclaves such as Uluwatu are leading performance, achieving ADRs around $291, driven by demand for exclusivity, views, and curated experiences.
Meanwhile, mid-tier and budget properties are seeing little to no growth, with many facing pricing pressure due to increasing supply.
The result is a clear two-speed market:
•Premium and lifestyle-driven assets are outperforming
•Mid-market offerings are becoming commoditised and increasingly competitive
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THE RISE OF EXPERIENCE-DRIVEN TRAVEL
The data points to a deeper shift in traveller behaviour.
Today’s guests are no longer simply booking accommodation — they are choosing experiences.
Wellness, design, privacy, and community have become central to decision-making. Properties that offer more than just a room — those that deliver a lifestyle — are commanding stronger demand and higher returns.
This is why features such as:
•Ice baths and recovery zones
•Saunas and steam rooms
•Gyms and wellness centres
•Spas, cafés, and social spaces
are rapidly transitioning from luxury extras into expected standards in higher-performing developments.
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THE NEXT EVOLUTION: BRANDED RESIDENCES
Another major trend emerging is the anticipated growth of branded residences, which currently account for less than 10% of the market.
This segment is expected to expand significantly due to:
•Stricter short-term rental regulations, particularly around platforms like Airbnb
•Investor demand for security, compliance, and professionally managed assets
•A shift toward institutional-style developments with consistent standards and service
As regulation tightens and the market matures, loosely managed villa rentals may struggle to compete with structured, branded offerings.
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A STRATEGIC RESPONSE FROM DEVELOPERS
In response to these shifts, some developers are repositioning away from generic mid-market projects and toward “attainable luxury” models — combining premium design and facilities with more accessible price points.
LUX Property Group is among those taking this approach.
The group, currently completing four major projects in Bali, says the key to maintaining strong rental demand is simple:
Deliver a luxury-level experience — without the traditional luxury price tag.
Its developments increasingly focus on integrated facilities such as wellness zones, gyms, spas, and communal lifestyle areas — designed to attract not just short-term holidaymakers, but also long-stay expats and lifestyle-driven buyers.
According to the group, this positioning helps avoid being trapped in the oversupplied mid-market segment, where price competition is intensifying.
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LOOKING BEYOND BALI
With Bali projects nearing completion, the company has flagged its next phase of expansion into Lombok, with two large-scale eco-focused developments:
•Nesara Bay City
•Gesara Bay City
These projects are planned as integrated lifestyle communities, blending low-density living with shared resort-style amenities — reflecting the same experience-driven model now gaining traction in Bali.
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FINAL WORD
Bali is no longer just a holiday destination — it is evolving into a global lifestyle and investment market.
The direction is clear:
•Demand is rising
•Premium assets are outperforming
•Mid-market supply is under pressure
•Experience and branding are becoming critical
For investors and developers alike, the takeaway is hard to ignore:
In Bali’s new market reality, it’s not just about building property — it’s about building lifestyle.
