Bali has always been a popular destination for travelers, thanks to its beautiful beaches, rich culture, and stunning landscapes. Hello, I’m Jason, a Business Journalist from Bukit Vista and I’m going to walk you through Bali Tourism update.
Every year, millions of tourists come to experience what the island has to offer. 2024 Alone, attracted 6,3 million foreign tourists. But behind this success, there’s a growing issue: the number of new properties being built is increasing with a faster pace than the number of tourists visiting. This imbalance could create problems for Bali’s tourism and property markets.
Tourist arrivals in Bali continue to rise and remain stable, reaffirming the island’s position as a top global travel destination. In 2024, Bali welcomed 6.3 million international tourists, marking a strong post-pandemic recovery. Along with this growth, demand for apartments, hotels, and office spaces has also increased, reflecting the ongoing need for accommodations and commercial properties.
On the other hand, many investors have seized this opportunity to maximize profits. Since the post-COVID period, property investments in Bali have surged, with numerous developments initiated. By the end of 2024, many of these under-construction properties have now entered the market, leading to a property supply surge that is outpacing the growth of tourist demand. This imbalance raises concerns about potential oversupply, particularly in the commercial property sector.
The impact of this rising supply is becoming evident, especially in the retail sector. According to recent survey from Bank Indonesia, the growth rate of commercial property price index has slowed, with year-on-year (YoY) growth dropping from 15.09% in Q2 2024 to 14.61% in Q3 2024.
This trend indicates that the commercial property sector is still expanding however, the number has outpaced the tourism trend growth. As more properties compete for the market share, it creates imbalance on the supply and demand. Hence, we have market turbulence.
Bali Tourism Boom: The Pre-COVID Growth and Rise of Digital Nomads
Before COVID (2014-2019), Bali tourism was booming with a high number of international visitors, digital nomads, and investors. The island became a top choice for travelers looking for beaches, culture, and affordable luxury. Many tourists preferred short-term rentals, increasing demand for villas and guesthouses. During late 2018, as remote work gained popularity, Bali became a top destination for digital nomads. The island’s coworking spaces, strong expat community, and affordable lifestyle attracted remote workers from around the world. Popular areas like Canggu, Ubud, and Uluwatu saw rapid growth, with busy hotels and high occupancy rates.
To keep up with Bali tourism demand, developers built new villas, hotels, and resorts across the island. Investors were confident that tourism would keep growing, leading to a property boom. The rental market was strong, with high prices and full bookings during peak seasons. Infrastructure improved, including better roads and a growing airport. Businesses thrived, and Bali became one of the most popular travel destinations in the world. Everything seemed to be on the rise—until the COVID-19 pandemic changed the industry overnight.
Bali Tourism Collapse: The Impact of COVID-19 on Travel and Hospitality
During COVID-19 (2020-2021), Bali tourism faced a historic collapse due to global travel restrictions. International arrivals dropped sharply, forcing many hotels, villas, and restaurants to shut down. With no tourists, rental occupancy plummeted, and businesses that relied on tourism struggled to survive. The usually bustling streets of Canggu, Ubud, and Seminyak became empty, and the local economy suffered a severe downturn.
The lack of visitors also affected the property market. Many construction projects were halted or delayed as developers faced financial challenges and uncertainty. With fewer buyers and renters, property oversupply began to grow, leading to an imbalance between available accommodations and demand. The once-thriving tourism industry was at a standstill, leaving Bali in a state of economic hardship, waiting for the world to reopen.
Post-Pandemic Rebound: The Recovery of Bali Tourist Demand
2022-2023: A Surge in Tourism and Development
As Bali tourism reopened in 2022, visitor numbers surged, fueled by pent-up travel demand. Digital nomads flocked to the island, seeking a remote work paradise, and key global events like the Russia-Ukraine war drove an influx of expatriates and refugees seeking stability. This heightened demand created a real estate boom, pushing developers to construct more properties. Optimism about Bali’s tourism growth encouraged aggressive investment, leading to a rapid expansion of hotels, villas, and co-living spaces.
2024: Record Tourism Yet an Oversupply Crisis Begins
By 2024, tourist arrivals hit an all-time high, with over 625,000 visitors in July alone, contributing to a total of 6.3 million for the year. However, despite this growth, the pace of property development outstripped demand. New projects initiated in 2022-2023 were now nearing completion, flooding the market with new accommodations. At the same time, economic shifts—such as mass layoffs and the rise of AI-driven industries—forced some digital nomads to return home, while the Russia-Ukraine war cooling down led to decreasing number of expatriates. Many long-term rental villas, facing declining occupancy, pivoted to short-term stays, further flooding the market.
2025: Oversupply and Market Turbulence
As early and mid-2024 construction projects finished, Bali entered 2025 with a fat property stock. New villas, guesthouses, and boutique hotels launched alongside a flood of former long-term rentals transitioning to short-term stays. However, tourism growth failed to keep pace with property expansion, creating an oversupply crisis. With fierce competition and price undercutting, many property owners struggled to maintain occupancy and profitability.
Conclusion: A Path Toward Sustainable Growth of Bali Tourism
Bali’s future success depends on solving the growing gap between tourist demand and property supply. While the island will always be beautiful and culturally rich, keeping Bali tourism thriving as a top destination requires careful planning, smart investments, and a focus on sustainability. By balancing supply and demand, Bali can remain a popular place for tourists and a profitable market for property owners.
This phenomenon signals a potential imbalance in Bali’s property market. If not managed strategically, excessive property development without a proportionate increase in demand could put downward pressure on occupancy rates and rental prices, especially in commercial properties. Moving forward, investors and developers must adopt a more data-driven and measured approach to support Bali tourism while ensuring sustainable property growth without creating an oversaturated market that could diminish profitability.
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