Why Bali hotels’ performance is expected to soften in early 2025

Q1 2025 is projected to be slightly slower than the previous year.

October to the second week of December is not a peak holiday season, so it is not surprising that the number of domestic and foreign tourist visits in Bali is relatively low, according to a Colliers report.

“In October, domestic tourist visits were recorded at 828,647, down 3.2% from September and overseas tourist visits were 559,911 people, down 5.7% from September. The total visits in October were 1,388,558; down 4.3% from the previous month, which affects hotel performance,” the report added.

Here’s more from Colliers:

The domestic market in Bali includes not only leisure travellers but also groups from government and corporate sectors, primarily for MICE activities. In midNovember, the government announced a 50% cut in the travel budget for State Civil Apparatus (ASN), significantly impacting hotel performance, especially for those relying on the government MICE market.

Tourists from Asia Pacific countries, particularly Australia, India, China, South Korea, and Malaysia; continue to dominate the Bali market, while European tourists mainly come from the UK, France, Germany, the Netherlands, and Russia. Areas like Ubud and Uluwatu remain popular with foreign tourists due to their unique attractions.

The government’s 50% efficiency measure on official travel, announced in mid-November, has impacted several hotels in Bali. The period from October to the second week of December, typically associated with MICE events from both corporations and government, saw lower tourist visits as it is not a holiday season.

The MICE market in Bali is lucrative in terms of revenue, as it involves not only meeting rooms and F&B but also room bookings. Regional government events tend to be fewer and use fewer rooms. Leisure guests, both domestic and international, started arriving in Bali in the third week of December, ahead of the Christmas and New Year holidays, with the peak of the New Year holiday expected to last until the first week of January.

Performance in Q1 2025 is expected to be slightly lower than the previous year due to Ramadan falling in early March, affecting domestic guest arrivals. The government and corporate markets are also expected to decline due to fewer business activities at the beginning of the year. The impact of the tightened travel budget for ASN is still uncertain. Therefore, hoteliers are expected to face low performance in early 2025.