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Mass tourism affects Bali market

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Trend is affecting spending and length of stay
A new report on Bali shows warning signs of a shift to mass market tourism, with arrivals growth accompanied by lower yield per tourist and shorter average lengths of stay.
Occupancy was up more than 4% in 2016, with “solid occupancy” across all categories excluding luxury, the report by C9 Hotelworks and Horwath HTL says. Growth was driven by increasing foreign direct arrivals, a slowing in new hotel openings and a further slashing of rates.
Bali’s domestic market in 2016 was up 12% year-on-year to around 7.1 million while foreign arrivals increased 6% to four million, bringing total arrivals to over 11 million for the first time.
There is a marked shift towards mainland China, which now holds second place in terms of international arrivals and is forecast to overtake the legacy Australian segment in 2017.
This can be attributed to a diversion of mainland Chinese traffic to Bali after Thailand’s government banned zero-dollar tours.
The typical Chinese tourist’s expenditure is around one-quarter that of a typical European or Australian tourist, surveys show. With the proportion of Chinese tourists increasing, the economic benefits per new tourist is reducing.
The average length of stay in Bali had fallen to 3.1 days by September 2016, down from 3.2 for the previous year. Denpasar was hardest hit, seeing a fall from 4.5 to 2.7 days.
TTG Asia

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