International arrival to Bali is steadily rising and Bali Villa is welcoming the opportunity
It has been 6 months since the Indonesian government decided to reopen its border to international arrivals. After a long pandemic, Bali started welcoming foreign nationals to relieve the pent-up pressure after the pandemic. We’re delighted to show you how Bali is faring so far.
Bali Tourist Arrival Spike
Bali is still experiencing a steady increase in foreign tourist influx to the island. Since the border reopened in February 2022, foreign tourists have started flocking to Bali.
In July, the statistics are already showing a similar number as in 2012 and 2013, when Bali tourism began to flourish. This is only the foot of the mountain as the number of arrivals is expected to rise.
On that note, the current market villa in contrast to that years is incomparable, as the villas on the market now are already in higher demand and way more expensive.
Source: BPS Provinsi Bali (2022)
Bali Resilience and Its History of Strong Rebound to Recover
Looking back to its previous record of major disruptive events, Bali typically showed a tendency to rebound stronger from adversity.
In 2003 the SARS outbreak forced several countries to restrict their borders and further reduced tourists coming to Bali by another 22.76%. However the next year, Bali rebounded strongly with 48.23% growth compared to the previous year.
An interesting case was also observed when Mount Agung erupted in 2017. This was followed by multiple minor eruptions in 2018 and 2019. However, international arrivals to Bali unexpectedly increased in those years.
This demonstrates Bali's strong attraction to international tourists despite the natural disaster occurrence.
Bali comes back stronger after a difficult period.
Photo by Ruben Hutabarat
The most recent post-pandemic event in Bali shows the same signs of a strong U-shaped recovery in its statistics. In 2021 Bali received only 51 visitors for the whole year. Upon reopening the border in February, the number of international visitors surged to more than 600 thousand by July. That is a more than 10 thousand percent growth.
Pent-up demand after a long period of lockdown might also contribute to its explosive growth.
Bali always recovers stronger from challenging periods.
Source: BPS Provinsi Bali
Bali Villa Market Overview
Despite the number of international arrivals to Bali having a shocking spike and constant rise, the 4-5 starred hotel experienced a dynamic trend and relatively low occupancy rate. On average, the occupancy rate between January to July only scores around 25-27%.
Despite the massive rise in foreign tourist arrival, the starred hotel still maintains a relatively low occupancy rate.
Source: BPS Provinsi Bali (2022)
A stark difference in the occupancy rate of villas. The 50th percentile of villas in Bali alone at least had a 60% occupancy rate in March. This number continues to rise until it finally reached 91% in August.
Villa occupancy retains a higher rate compared to starred hotels
Source: AirDNA (2022)
The demand and revenue growth for villas also continues to increase. The number of nights booked keeps rising from March until reaching nearly 40,000 in August.
Villa booking between March to August saw a staggering 152% increase.
Source: AirDNA (2022)
Bali villas in the 50th percentile range generated 20.9 million IDR in monthly revenue in March and steadily climbed to 110 million IDR in August. Whereas the 75th percentile of Bali villas generated around 53 million IDR a month in March and reached 179 million IDR in August.
Source: AirDNA (2022)
Opportunity for Bali Villa Market
The data shown above is a sign for Bali villas to seize the golden opportunity.
The lower numbers of people staying in hotels and positive growth in the demand for villas indicate that there’s a growing trend among international travelers that led them to lean toward villa rentals rather than hotels. It is even more so after the pandemic.
It stands to reason that villas offer more varied options for various kinds of tourists. It can accommodate the single digital nomad while also providing options for the large tourist group.
According to a survey, more people preferred to rent a private villa than a hotel for added privacy, security, and peace of mind.
Villa offers more variable options to choose from.
Photo by Bali Home Immo
Besides the supporting market statistics, there are other factors worth considering for the villa business in Bali after the border reopened.
As Indonesia established its vision to organize tourism that would bring brand awareness and revenue, its government also introduced convenient regulations and favorable policies that would facilitate tourism.
The most recent one is the implementation of a digital nomad visa that may let foreigners stay continuously in Indonesia for a total of 6 months.
The digital nomad visa will be an opportunity for the Bali villa
to capture the longer-stay international visitors.
Photo by Unsplash
The second home visa also might entice the advanced age group to spend their retirement years in a more climate-friendly Bali.
G20 as one of the most influential international events also brings new bouts of tourists to Bali, expanding its brand awareness and range of visitors to a considerable degree.
Also Read: Bali Opportunity in the G20 2022
With all these factors considered, the villa rental market in Bali should seize the golden opportunity presented.
Looking to buy or rent a villa in Bali? Our villas for sale and rent cover 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.
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 in 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.
