Bali has always been a popular destination for travelers, thanks to its beautiful beaches, rich culture, and stunning landscapes. Hello, I’m Jason, a Business Journalist from Bukit Vista and I’m going to walk you through Bali Tourism update.
Every year, millions of tourists come to experience what the island has to offer. 2024 Alone, attracted 6,3 million foreign tourists. But behind this success, there’s a growing issue: the number of new properties being built is increasing with a faster pace than the number of tourists visiting. This imbalance could create problems for Bali’s tourism and property markets.
Tourist arrivals in Bali continue to rise and remain stable, reaffirming the island’s position as a top global travel destination. In 2024, Bali welcomed 6.3 million international tourists, marking a strong post-pandemic recovery. Along with this growth, demand for apartments, hotels, and office spaces has also increased, reflecting the ongoing need for accommodations and commercial properties.
On the other hand, many investors have seized this opportunity to maximize profits. Since the post-COVID period, property investments in Bali have surged, with numerous developments initiated. By the end of 2024, many of these under-construction properties have now entered the market, leading to a property supply surge that is outpacing the growth of tourist demand. This imbalance raises concerns about potential oversupply, particularly in the commercial property sector.
The impact of this rising supply is becoming evident, especially in the retail sector. According to recent survey from Bank Indonesia, the growth rate of commercial property price index has slowed, with year-on-year (YoY) growth dropping from 15.09% in Q2 2024 to 14.61% in Q3 2024.
This trend indicates that the commercial property sector is still expanding however, the number has outpaced the tourism trend growth. As more properties compete for the market share, it creates imbalance on the supply and demand. Hence, we have market turbulence.