In a triumphant comeback, Bali’s hotel market witnessed an extraordinary rebound in 2023, surpassing its pre-pandemic peaks. The island’s first full year with minimal COVID-19 restrictions sparked a surge in demand, fueled by the pent-up wanderlust accumulated during the global health crisis.
Key to this resurgence was the government’s successful Visa on Arrival (VOA) program, welcoming tourists from 89 countries and revitalizing the tourism sector. Despite challenges, domestic visitors remained steadfast, maintaining Bali’s primary market with consistent monthly visitation.
While international arrivals fell short of 2019 levels, reaching 5.27 million, a notable shift in the nationality mix of foreign tourists was observed. The decline in Chinese visitors was offset by increases from Australian, Korean, Singaporean, and Indian guests, possibly influenced by Indonesia’s efforts to strengthen foreign relations.
Australia maintained its position as the top foreign source market, followed by India, China, the United Kingdom, and the United States. Notably, Australia’s arrivals surged, promising further growth potential with increased airlift and destination developments.
India emerged as a key market source, benefitting from direct flights and political initiatives to boost its presence. Despite a decline in Chinese arrivals, Bali’s resilience and depth were evident as the market diversified.
Performance metrics soared with a 30% increase in Average Daily Rate (ADR) and Revenue per Available Room (RevPAR) in USD. Occupancy rates surged to 72%, reflecting a remarkable 21% point increase over 2022.
Despite currency devaluation, Bali’s tourism market outperformed both 2019 and 2022 levels, underscoring its positive trajectory. Seasonality remained reasonable, with February, March, May, and November recording lower visitation.
In summary, Bali’s tourism sector demonstrated resilience and growth in 2023, driven by eased travel restrictions, increased airlift, and pent-up demand. With strategic initiatives and diverse markets, the island remains poised for continued success in the years ahead
