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06 – 08 March 2014, Bali Nusa Dua Convention Centre

Bali remains at the forefront of the tourism industry in Indonesia, recently receiving the award for the best Spa destination in the world to add to its previous list of world tourism and hospitality awards.

To cater to the growing number of tourists a whole host of new hotels have recently opened with more expected to be completed later this year and in 2014.

Big opportunities exist right across the board, in food and drink, bakery and the hospitality sector to meet a more affluent middle class and increasing numbers of foreign arrivals.

Indonesia – Booming Hospitality Sector

According to the Indonesian Hotel and Restaurant Association (PHRI), there will be at least 45,000 new hotel rooms this year, an increase of 30,000 from 15,000 rooms in 2012. The increase is far higher than the additional 5,000 to 15,000 rooms a year during the past several years.

The new supply would increase the total number of hotel rooms to around 285,000 nationwide by the end of 2013.

The construction new hotels has not only been dominated by established hotel chains, as many companies from outside the hospitality industry had entered the hotel business with growing economic activities and tourism.

Surging new tourism investments has concentrated mainly in hotel, restaurant and travel business areas. In the first 3 quarters of 2012, data from the tourism and creative economy ministry indicated foreign direct investment of Rp 6.9 trillion, compared to Rp 2.422 trillion for the same period in the previous year. Domestic investments totalled Rp 860 billion, up from Rp 394.2 billion in the previous year (Outlook of Tourism Sector in 2013, Indonesia Commercial Newsletter, Jan 2013).

Based on Central Statistics Agency (BPS) data, the number of foreign tourists increased by around 10% over the past 2 years. The BPS recorded 8.04 million and 7.65 million foreign tourists arrivals in 2012 and 2011, respectively.

For domestic travellers, the agency data showed that there were 247 million domestic trips in 2012 compared to 235 million in 2011.


Source: New Players Enter Fast Growing Hotel Industry, 18 March 2013, Jakarta Post.


Destination Bali

Bali continues to be a leading travel destination in Indonesia attracting 2.6 million foreign tourists for the first 11 months of 2012, an increase of 4 percent from the same period in 2011. 

According to a Horwath HTL and C9 Hotelworks study, December 2012, by the end of 2016, more than 12,000 new rooms are expected to enter the market. Of which, 5 star hotel constitutes 32% of the total new room supply expected, while 4 and 3 star hotels constitute 28% and 40% respectively.

Bolstered by strong economic performance as well as growing domestic and in-bound travel, luxury brands are expected to expand their presence and activities over the coming years.


• Worldhotel will open its first new resort hotel, the Worldhotel Balangan in Bali, early 2014.

• Tauzia Hotel Management plans to introduce its new Preferences brand in Bali. The boutique hotel will place emphasis on Indonesia culture and heritage, it is expected to begin operations next year.

• Sofitel Bali Nusa Dua Beach Resort would mark its debut in Indonesia by offering 415 luxury rooms and suites.


Source: Luxury Hotel Brands Plan Massive Expansion in Java and Bali, 27 March 2013, Jakarta Post.