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The pace of hotel development in Bali has accelerated over the past five years according to data from BPS-Statistics of Bali Province’s annual Hotel Survey. Over the past five years, the number of star-rated hotel rooms has grown at CAGR of 16.3% compared to a CAGR of 10.1% over the past ten years (2008-2018) as illustrated in the table below.

The growth in the supply of star-rated hotel rooms mirrors the growth in room demand which has grown at a CAGR of 18% over the 2013-2018 period. While the number of domestic visitors to Bali has slowed in recent years (6.9% CAGR for 2013-2018), the number of international visitors has grown significantly at a CAGE of 13.1% for the same period. To download a copy of our recent report on our short term forecasts to Bali, please refer to our recent post.

Badung Regency, which is located in the center of Bali and contains the major tourist centers of Canggu, Seminyak, Legian, Kuta and Nusa Dua, has consolidated its share of the star-rated hotel market in Bali over the past five years. It’s share of star-rated hotel rooms has grown from 75.4% in 2000 to just over 84% in 2018, with a recent five year CAGR of 18.7%.

Growth Rates (CAGR) for the Number of Star-Rated & Non Star-Rated Hotel Rooms in Bali’s Regencies & the City of Denpasar 2013-2018

Growth in the Number of Star-Rated Hotel Rooms by Regency & the City of Denpasar, Bali 2000-2018

Source: BPS-Statistics of Bali Province & Hotel Investment Strategies, LLC

The growth in non star-rated hotel rooms over the past five years has mirrored the growth in star-rated hotel rooms, with a CAGR of 16.8% and a correlation of growth rates across the regencies of 0.76.

Growth in the Number of Non-classified Hotel & Other Accommodation Rooms by Regency & the City of Denpasar, Bali 2000-2018

Source: BPS-Statistics of Bali Province & Hotel Investment Strategies, LLC