According to the report published by Statistics of Bali Province (BPS), the number of foreign travelers that arrived in March 2022 via air travel was 14.617 visitors, which is 11 times more than in February when travel restrictions began to ease. This number grew exponentially again in April, reaching 58.315 visitors in just one month. The official figures for May and the subsequent months weren’t released yet at the time of this writing, but it’s apparent that Bali is welcoming more and more visitors considering the recent development in the vacation home rental market which we’ll discuss below.

Digital nomads will be able to work from Bali for 5 years using a special visa

Photo by Peter Olexa

In addition, the government has announced the plan to issue a special visa for digital nomads soon. This visa will be a huge advantage for remote workers in Bali because it has a 5-year validity and the visa holder’s foreign-sourced income won’t be taxed. The plan was meant to be launched back in 2021 but had to be put on hold due to worldwide travel restrictions, and now is just the right time to put it back in motion again. 

Also read: Top 5 Places in Bali For Villa Investment

Villa rental revenue & occupancy rate increases significantly

The average monthly revenue of vacation home rentals continues to increase every month since Bali reopened, yielding double the amount generated in February within 3 months. Occupancy rate experienced a steady increase as well, with an average of over 60% from February to April and reached 80% in May. Villas in the 75th percentile performed remarkably better, yielding almost triple the revenue in February alone while the occupancy rate remained steady at over 90% from February to May.

Monthly revenue & occupancy rate of vacation home rentals in February - May 2022

Source: AirDNA

The opening brought back the trend that was last seen in 2019, when the vacation rental market enjoys good returns and continues to grow each year. Despite still in the early phase, the data proves that Bali’s short term rental industry can rebound quickly provided that the number of international visitors continues to skyrocket. At Bali Home immo, we also noticed that many villas for long term rental that were frequently available are now difficult to book due to overwhelming demand, which is a good indicator of increasing occupancy rate not only in short term rental but also in yearly and monthly rental villas.

Also read: How to Start an Airbnb Rental in Bali as a Foreigner

Market trend is shifting to pre-COVID statistics

After a long hiatus, the trend has shifted to pre-COVID times in such a short time span. Market revenue in May 2022 nearly matches the historical data of December 2019 and January 2020, yielding almost 120 billion IDR in just 3 months. Before COVID, the market was at an all time high with demand and revenue constantly increasing over the years. This development might mark the return of Bali’s lucrative vacation rental industry, presenting a golden opportunity for real estate investors to welcome a new wave of travelers eager to spend their holidays or settle on the island.

Villa rentals in Bali are thriving since the border reopened

Photo by Bali Home Immo

Looking to buy or rent a villa in Bali? Our selection of villas for sale and rent covers the best areas including Canggu, Seminyak, Pererenan, Sanur, Uluwatu, and more. Interested in buying land suitable for residential or investment development? We also have an extensive selection of land for sale and lease that you might be interested in. No matter what your goal is, we aim to help find the right property that suits you perfectly so please don’t hesitate to contact us.

Also read: How to Earn Passive Income from Property Investment in Bali 

Disclaimer: The content of this publication is provided as general information only and does not constitute legal, financial, tax, or other professional advice from Bali Home Immo. Some of the information provided on this publication is obtained from a third-party source and we do not guarantee that the content of this publication is accurate, complete or up-to-date. Past performance is not indicative of future performance and should not be relied upon as a basis for an investment decision.

To facilitate the payment process, the Bali Provincial Government has established an online platform, Love Bali, where foreign tourists can conveniently pay the entry tax before their arrival. Additionally, tourists have the option to settle the fee directly at the international airport and seaport upon entry into Bali. The revenue generated from this entry tax will be allocated towards conservation efforts aimed at preserving Bali's natural beauty and ensuring a sustainable and comfortable environment for residents and visitors alike.

Objectives:

Authorities emphasize that the implementation of the entry tax is not merely a revenue-generating measure but a proactive step towards safeguarding Bali's environment and culture. With increasing concerns over environmental degradation, over-tourism, and cultural commodification, the entry tax serves as a mechanism to regulate tourist influx while funding essential conservation projects. By discouraging mass tourism and promoting responsible travel practices, Bali aims to strike a balance between economic development and ecological integrity.

Impact and Future Outlook:

The introduction of the entry tax signifies a paradigm shift in Bali's tourism management approach, reflecting a broader global trend towards sustainable tourism. While some may view the fee as an additional expense, proponents argue that it is a small price to pay for the preservation of Bali's natural wonders and cultural heritage. Moving forward, stakeholders will closely monitor the impact of this policy on tourist arrivals, revenue generation, and conservation outcomes, with the ultimate goal of ensuring the long-term sustainability and resilience of Bali's tourism industry.

To sum up, as Bali adapts to the evolving dynamics of the tourism sector, the implementation of an entry tax for foreign tourists underscores the province's commitment to environmental conservation and cultural preservation. By leveraging tourism revenue to support conservation efforts, Bali aims to forge a path toward sustainable development while maintaining its status as a premier travel destination. As visitors embark on their journeys to the island of gods, they are not only welcomed with open arms but also encouraged to contribute to the preservation of Bali's unparalleled beauty and heritage for generations to come.