Bali follows other Indonesian markets in recovery of hotel performance

BALI, Indonesia ends 2020 in the same form as other countries in the region. Domestic demand was strong enough to lift hotel occupancy rates from pandemic lows, but insufficient to fill the international travel void.

As Indonesia shifts into early 2021, the impact of lost international demand is more evident in Bali, which continues to follow the country’s regional markets in the recovery process.

Report of Hospitalitynet.orgIn addition to Singapore’s occupancy rate increased by quarantine requests, Indonesia is also in line with other Asia-Pacific countries by 36% this year.

However, business is worse in Bali, with an occupancy rate below 20% most of the year. At the same time, Jakarta, Bandung, Medan and Surabaya have reached higher levels thanks to a greater dependence on the domestic demand of these markets.

Occupancy rates in all cities started to increase in June after the end of the 3-month “emergency period” put in place by the Indonesian government.

The peak of occupancy at the end of 2020 is in line with New Year celebrations, while the addition of a higher period in Bandung correlates with national holidays such as the Islamic New Year and the celebration of the birthday of the prophet.

To cope with lower occupancy rates, Bali hoteliers can rely on room rates to increase their revenue per available room (RevPAR). For 2020, Bali’s ADR is 91% higher than the national average.

Regardless, when indexing RevPAR to 2019 levels, Bali lags far behind other major markets in the country. Due to the impact of the pandemic on 2020 data, 2019 has become a benchmark for hoteliers to measure their recovery.

The latest preliminary data from February 2021 shows that Bali’s average daily occupancy rate is still below 35%. While the country’s vaccination campaign, which began in mid-January, has given cause for optimism, there is still no reopening schedule for travelers from countries like China, Korea. South, Japan and Australia.

The reopening will ultimately give the most necessary boost to Indonesian hoteliers.

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