Hotel owners in Bali have noticed an unexpected pattern: statistically, the number of tourists on the island is growing every month, yet they are experiencing fewer guests. The drop in occupancy is particularly noticeable in Nusa Dua, where the number of available rooms has increased by 10-12 percent.
Professor Tjok Oka Artha Ardhana Sukawati, head of the Indonesian Hotel and Restaurant Association (PHRI) in Bali, outlined four reasons why tourists are no longer in a hurry to stay at hotels:
- Bali is a hub, not a destination. More and more travelers are using the island as a transit point. Their real destinations are Gili, Komodo, and other places that are conveniently accessible via the "Island of the Gods".
- Cruisers stay overnight on water. After the renovation of the Benoa port, more liners have started docking here. There are many tourists, but they stay overnight on the ships, making hotels unnecessary for them.
- No more government orders. Previously, government bodies often held conferences, business meetings, and exhibitions in Bali, but now, with the introduction of strict savings policies, such events have become less common. Consequently, big hotels have less income.
- Unfair competition. The market has been flooded with villas and guesthouses, including those owned by foreign investors. They entice clients and don't always operate legally. Some don't pay taxes, and thus aren't regulated like official hotels.
The greatest discontent among local hotel owners is with the last point, particularly the influx of foreign investors. They buy land, build villas, and often start operations without the necessary licenses. This has become a significant problem, especially for small hotels.
"They control the market, connect to international platforms, while local entrepreneurs lose clients," says Sukawati.
Meanwhile, discussions are underway in Jakarta and Bali about a potential wave of layoffs in the hospitality sector. According to the Indonesian Chamber of Commerce and Industry (KADIN), up to 70% of hotel and restaurant owners are considering staff reductions due to a sharp decline in revenue.
"Yes, it's related to President Prabowo's policy of cutting expenses. It's all for efficiency, but hotels, restaurants, and tourism, in general, are suffering," admitted KADIN head Anindya Bakrie.
However, the problems have not yet affected all areas. For example, hotel owners in Sanur and Ubud say their situation remains stable. Some are adapting: during the lack of government orders, they are shifting to private clients, focusing on the local market, and launching new leisure formats. Some, like the owner of a hotel in Kintamani, admit that there haven't been mass layoffs, but employees leave on their own to work abroad or on cruise ships.
"People want stability and better salaries, so they are seeking work outside Bali," explains business owner Ayu Saraswati.
Former tourism minister Sandiaga Uno reassures that there's no need to panic. According to him, tax revenues from hotels and restaurants have not decreased. The format is just changing—tourists are increasingly booking accommodation through digital platforms, choosing private villas, staying longer, but spending differently. Hoteliers who want to maintain their business on the island need to adapt to this.
Sources: Kompas, Bali Express.
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