A Booming Business for Villa-Hotel Owners in Bali as Occupancy Rates Soar

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The holiday destination of Bali is anticipated to attract a large number of tourists during the 2024 Eid al-Fitr celebration, as hotel and villa owners report a significant increase in occupancy rates. Johannes Weissenbaeck, the CEO of OXO Group Indonesia, revealed that Bali is currently experiencing its best moment post-pandemic, with occupancy rates surpassing the usual high season averages.

Traditionally, Bali experiences three high seasons – July to September, the period between Christmas and New Year, and around Easter in April. The Eid al-Fitr holiday has now contributed to the influx of tourists, both local and international, resulting in a notable increase in occupancy rates that surpass the typical 67% average for hotels in Bali.

Johannes stated, “Currently, our occupancy rate is excellent at 82%, whereas the average for hotels in Bali is around 67%. If it goes above 70%, it’s already good. Our villa in Berawa is fully booked at 97% every day this month, but not all of them are performing as well.”

Interestingly, hotel managers are actively avoiding reaching 100% occupancy to mitigate overcrowding. Instead of aiming for full occupancy, they opt to increase their rates during high season periods like the current one, focusing on revenue instead of maximizing the number of guests.

Johannes explained, “If the occupancy is at 70%, we are satisfied with higher prices. If we want to lower the occupancy, we’ll increase the price for clients. It’s better to have 70% occupancy with stable prices rather than lower prices and overcrowding. So, we do not lower the prices.”

Additionally, many hotels and villas in Bali offer rental systems for tourists, particularly for international visitors looking to stay in Bali for extended periods, whether for leisure or work. The cost of renting a hotel room or villa is quite substantial, reflecting the high demand for accommodation in Bali.

“For instance, a 2-bedroom villa in Canggu can be rented for Rp 85 million per month, and if someone decides to stay long term for 6 months, it would only be around Rp 3 million per day,” Johannes shared.

During peak seasons, hotel prices can skyrocket, leading managers to refrain from offering monthly or yearly rentals. Instead, nightly rates can double or even more, depending on the location and demand.

“For a night’s stay, it can cost between Rp 6-7 million, depending on the villa and its location. High season usually employs a daily rental system, but it varies based on management. Some focus on short-term rentals while others focus on long-term. There are companies specifically for long-term yearly or monthly rentals,” he added.

The bustling tourism industry in Bali has made it a prime choice for not only holiday goers but also for those seeking long-term stays. The increasing number of visitors has undoubtedly made it a prosperous time for hotel and villa owners, signaling a positive economic outlook for the tourism sector in Bali.

In conclusion, this surge in occupancy and rental rates will likely benefit both the tourism industry and the local economy, making Bali an attractive destination for tourists and a profitable venture for hotel and villa owners alike.


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