The rapid growth of the hotel industry in Bali has sparked a heated debate about the island’s construction permits. Critics argue that the permits are being issued too freely, leading to an oversaturation of the market and making it difficult for hotels to maintain ideal occupancy rates. In response to the fierce competition, many hotels are striving to differentiate themselves.
A recent controversy erupted over the construction of a villa that involved cutting into cliffs, drawing ire from netizens who accused Bali of neglecting proper spatial planning. The ease of obtaining permits has led to a surge in hotel constructions, intensifying the competition.
According to data from the Indonesian Hotel and Restaurant Association (PHRI) in Bali, as cited by Travel Detik, the island now hosts over 3,500 hotels with a total room capacity of approximately 146,000. Despite this growth, hotel occupancy rates have struggled to reach ideal levels from 2010 to 2024.
Over the past 14 years, the average hotel occupancy rate has fluctuated between 60% and 62%. Ideally, hotels should achieve an occupancy rate of 70% to 75% to ensure smooth operations.
Theresa Yudistira, Corporate Director of Marketing at Adiwana Hotel and Resort, addressed the issue. Adiwana Hotel and Resort was recently recognized as one of the world’s best hotels by Tripadvisor in the Traveler Choice Best of Best Awards 2024.
Read also: Flight Tickets Feel in Indonesia Increasingly Expensive, Targeted to Drop by 2025
“We are not afraid of competing with new hotels because we believe each Adiwana Hotels & Resorts property has its unique strengths and target market,” Theresa said on Thursday (June 13).
Theresa explained that Adiwana Hotel and Resort continually evolves and adapts to changing trends while maintaining the brand’s distinct characteristics. This adaptability helps them remain competitive.
“We see competition as a motivation to keep evolving and improving,” she added.
Adiwana operates 11 properties across Ubud and Nusa Penida. According to Theresa, their occupancy rates remain stable.
“So far, the competition has not affected us. Our hotel occupancy remains at a good level, and we haven’t faced water issues,” she said.
Cynthia Gabriella, Cluster Assistant Marketing Communications Manager at SereS Springs Resort & Spa Singakerta, shared a similar view.
“At SereS, we acknowledge new competitors, but we are confident in our service and properties,” Cynthia stated.
Furthermore, SereS Springs Resort & Spa Singakerta attracts a diverse market beyond honeymooners.
“Our property offers the best meeting and event facilities in Ubud,” she noted.
