Bali’s Tourism and Hospitality Landscape: A Comprehensive Overview

In a remarkable collaboration between Horwath HTL, the Bali Hotels Association, and C9 Hotelworks, the latest annual report presents a detailed analysis of Bali’s rapidly evolving tourism scene. This year’s report highlights key metrics such as tourism arrivals, hotel performance, new supply trends, and insights into the branded residences market, providing a holistic view of the current landscape.

Record-Breaking Tourism Arrivals

Bali’s allure continues to draw visitors from around the globe, as illustrated by international arrivals hitting a record 6.95 million in 2025—a 10% year-on-year increase that surpasses even the pre-pandemic heights of 2019. Australia remains the leading source market, contributing 1.63 million arrivals, followed by a resurgence from India and a notable comeback from China, which saw an impressive 20% rise year on year to 537,000 visitors. Domestic arrivals have slightly moderated to 9.6 million, yet remain well above pre-pandemic levels, underscoring the resilience of the domestic tourism sector.

Hotel Performance: A Period of Stabilization

After two robust years of growth, the hotel sector has reached a consolidation phase, with overall occupancy averaging 73.2%—a 2.5% decrease from the previous year’s elevated figures. Interestingly, the Average Daily Rate (ADR) in Indonesian Rupiah (IDR) increased by 2.4% to IDR 2.4 million, while the USD ADR saw a decline of 2%, largely due to fluctuating currency exchanges.

Revenue per Available Room (RevPAR) largely remained steady in IDR terms at IDR 1.7 million. July emerged as a peak month with an impressive occupancy rate of 85.9%, driven by winter holidaymakers from Australia and summer vacationers from Europe.

Performance by Location: The Top Contenders

The report has highlighted specific areas that excelled:

• Nusa Dua led the charge with an impressive occupancy rate of 79.2%, largely driven by robust Meetings, Incentives, Conferences, and Exhibitions (MICE) as well as leisure demand.
• Jimbaran and Uluwatu stood out with the highest ADR at IDR 4.8 million, affirming their status as premium destinations for high-end travelers.
• Ubud showed remarkable RevPAR growth of 5.6%, buoyed by an 11% increase in ADR, despite seeing a slight dip in occupancy.

Luxury Segment Shines Brightest

In terms of hotel rate performance, the luxury segment (Rate A, >USD 501) has emerged as a standout, with ADR growth reaching 8.0% in IDR terms, achieving an impressive IDR 13.1 million. This segment’s strength contrasts with the budget and mid-economy tiers (Rates E & F), which have faced challenges from increasing competitive pressures stemming from an expanding hotel supply. The mid-market segment (Rate D, USD 81–140) maintained balance with both occupancy and RevPAR maintaining positive growth.

A Measured Approach to New Supply

Bali’s hotel pipeline currently features 5,641 rooms across 45 new hotel projects, with significant developments concentrated in Canggu, Jimbaran/Uluwatu, and Ubud. Notably, Rates A and B represent over half of this supply, emphasizing an ongoing investor appetite for premium accommodations and a competitive luxury market.

Transitioning Branded Residences Market

The branded residences market is currently in a state of transition, with over 70 hospitality-managed developments actively available for purchase in Bali. Canggu/Berawa dominates the scene, accounting for approximately 40% of available units. However, land constraints are prompting a shift towards new developments in areas like Seseh, Pererenan, and Nyanyi.

A significant regulatory change requiring all short-term rentals to achieve full legal compliance by March 31, 2026, is poised to elevate demand for professionally managed branded residences, which currently make up just 10% of the active market. Moreover, freehold offerings have risen significantly, jumping from 12% to 23% of the total supply, thereby attracting more domestic Indonesian buyers.

Navigating the Future: A Complex Landscape Ahead

Bali’s long-term investment appeal remains resilient despite emerging complexities. The destination boasts extraordinary global brand equity, healthy market diversification, and solid demand fundamentals. However, the focus is shifting from mere growth to the quality and sustainability of that growth. Critical issues, such as water availability, waste management, infrastructure capacity, and regulatory adherence, will require close scrutiny moving forward.

As the market evolves, disciplined site selection and a practical approach to project underwriting will become paramount for stakeholders looking to enter or expand within Bali’s vibrant tourism and hospitality sector.

For a deeper understanding of these trends and insights, download the full report here.