Despite the common belief that Bali’s tourism sector is saturated, it actively seeks more visitors. I Putu Gede Hendrawan, who leads the Bali Villa Association (BVA), is leading efforts to increase the island’s appeal to both domestic and international tourists, dispelling the myth that Bali is at capacity. This initiative not only promises to enhance Bali’s charm but also signifies an optimal period for foreign investors to consider real estate in the region.
Challenging the myth of over-tourism in Bali
Bali is often believed to be a tourist hotspot that has reached its limit. However, the truth is that Bali has not yet reached its full tourism potential. According to Hendrawan, hotel occupancy rates, which is an essential indicator of tourism capacity, usually stay below 90% and can even fall below 50% outside of peak season.
The data contradicts the idea of over-tourism and shows that there is a lot of room for growth in the number of visitors. This is excellent news for real estate investors because it indicates that there will be sustained demand for rental properties and hospitality services. Therefore, now is an ideal time to invest.
Maintaining market appeal amidst global competition
Hendrawan is concerned that the perception of Bali as overcrowded may cause potential tourists to choose other destinations instead. To address this concern, he suggests intensifying marketing efforts to retain traditional markets in countries such as Australia and Europe while also tapping into emerging markets like China and India, which showed significant interest in Bali before the pandemic. This strategic market diversification is crucial as it ensures a continuous flow of tourists, supports the hospitality sector, and boosts demand for local real estate.
Excellent news for foreign real estate investors?
The current efforts to attract more tourists and eliminate the false image of over-tourism are excellent news for foreign real estate investors. With more tourists visiting, the occupancy rates for vacation rentals will increase, leading to a sustained demand for residential leases and more opportunities in commercial real estate that cater to visitors. Additionally, Hendrawan’s focus on widening the tourist base to include fast-growing economies such as China and India suggests that there will be a future increase in demand for diverse real estate offerings, ranging from luxurious villas to budget accommodations.
The current scenario in Bali is very promising for foreign investors due to its proactive tourism strategies and ample capacity to accommodate more visitors. The island has been working towards enhancing its global appeal, strengthening its position as a top tourist destination, and establishing itself as a potential market for international real estate investments. By making strategic investments at this stage, foreign investors can expect significant returns as Bali continues to open up its doors to the world.
