“There is at least a 10-20% increase in rates every year”
TTG Asia reports that buoyant inbound traffic in Bali is driving hotel rates skywards, despite limited airlift and a large number of rooms that will flood the market by 2014. The popular Indonesian holiday island will have more than 10,000 new hotel rooms by 2014, according to property consultancy Knight Frank. Around 37% of these will be operational by the end of 2012.
“Hotel rates in Bali have been on the rise even with additional supply underway”, Richard Vuilleumier, managing director of Panorama Tours Malaysia, said. “There is at least a 10-20% increase [in rates] every year.”
For example, the luxury resort Conrad Bali raised its rates by 8% in 2012 and is targeting a 10% rise in 2013. This is largely because the resort’s average occupancy was about 78% this year. The Seminyak Beach Resort & Spa, aims at increasing room rates from $270 in 2012 to $308 in 2013. Huge inbound traffic from markets such as Australia, Vietnam, China and Japan are keeping demand strong in Bali.
[pictured: Royal Beach Seminyak Bali]