Bali Performance stands out in the Asia Pacific region October 2018 produced hotel performance growth throughout the Asia Pacific region with a 1.6% increase in occupancy, a 1.5% lift in average daily rate (ADR) and a 3.0% jump in revenue per available room (RevPAR), when reported in US dollar constant currency. STR data tells many interesting stories among the markets and submarkets but perhaps none more so than Bali, the Indonesian island displaying impressive capacity for supply growth and a resilience to potential negative impact events. Following terror attacks in Surabaya in May 2017, 14 countries issued travel advice for Indonesia, yet this had little impact on Bali’s hotel demand and RevPAR. On the other hand, volcanic eruptions from Mount Agung between September and November 2017 did cause a substantial drop in demand for December 2017 (-35.1%) and January 2018 (-21.1%). Bali has since shown its powers of recovery. June to October of 2018 produced 50% of the market’s top 10 absolute occupancy months since 2012. October was the market’s performance pinnacle, as meetings of the Board of Governors of the International Monetary Fund and World Bank Group helped Bali achieve a 20.0% increase in demand over the prior year period and a record-breaking October ADR of IDR1,890,946.89. New inventory has been a constant, with supply growing at a CAGR of 5.2% and increasing year-on-year in every month since 2013. The appetite for developing new supply is showing little sign of slowing in the market. Indonesia currently has 55,216 rooms across the construction and planning phases of the pipeline, and over 10,000 of these sit within Bali.
Performance October 2018 Year-to-Date
Occupancy 75.6% 18%
RevPAR IDR1,429,016.40 64.1%
ADR IDR1,890,946.89 39.0%
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