Hundreds of Hotels and Villas in Bali Put Up for Sale Amid Accommodation Glut

JAKARTA, STUPA NEWS — Hundreds of hotels and villas in Bali are being put up for sale amid intensifying competition in the accommodation sector, with a member of Indonesia's regional representative council saying the supply of lodging has grown faster than tourist demand.

Ni Luh Putu Ary Pertami Djelantik, a member of Indonesia's Regional Representative Council (DPD) from Bali, said the rapid expansion of hotels and villas had created tougher competition, particularly for properties that have been operating for years.

"The increase in the number of villas and hotels in Bali is not in balance with the increase in tourist arrivals," Ni Luh said at the Indonesia Business Forum on Wednesday (Sept. 30).

She said newer properties were often offering lower prices and more extensive facilities, putting pressure on established hotels. She also raised concerns about the growing number of villas operating without complete permits.

Ni Luh said some tourists who initially came to Bali for holidays were also taking advantage of the island's property market by renting villas and then subletting rooms to other visitors.

The growing number of accommodation options, she said, was fragmenting demand and pushing down occupancy rates at some established hotels, making it harder for them to cover operating costs.

"There are hundreds of properties, including unfinished hotels, partially completed projects and hotels that have been operating for decades, that cannot achieve sufficient occupancy," she said. "They have no choice but to sell their assets."

Ni Luh also pointed to property investment practices as another factor behind the growing supply of villas and other accommodation.

She said some investment schemes promoted returns of 12% to 20%, which she described as unrealistic and potentially encouraging developers and investors to build properties without adequately considering market demand.

Some investors, she said, bought properties in the expectation of quickly recovering their capital before reselling them, further adding to the supply of accommodation that may not be fully absorbed by tourists.

Ni Luh called for the central and local governments to work together to address Bali's long-standing tourism challenges, including the growth of accommodation and licensing issues.

"Bali's problems have become increasingly complex over many years. Many issues need to be addressed jointly by local and central governments," she said. (Made)