Bali Hotel Sales Surge: Industry Group Urges Government to Watch for Property Speculators

Speaking on the sidelines of the 6th Global Conference on Entrepreneurship and Economy in an Era of Uncertainty (EEEU) in Badung, Bali, PHRI Bali chairman Tjokorda Oka Artha Ardana Sukawati, known as Cok Ace, raised concerns over the increasing number of hotel sales occurring across the island.

According to Cok Ace, hotel sales are not a new phenomenon in Bali, but the recent uptick in owners looking to divest their assets is linked to global geopolitical pressures, declining consumer purchasing power—including among domestic tourists—and currency fluctuations that have added financial strain on operators with foreign-currency-denominated bank loans. Selling hotels, he said, has become a survival strategy for some accommodation businesses.

Despite this, PHRI Bali noted that interest from global investors and hotel operators in entering the Bali market remains very high. The association welcomed the government's move to tighten investment licensing procedures to filter out short-term property speculators and ensure that new investors are genuine, professional players in the tourism industry.

Cok Ace observed that the hotel sales trend is fairly widespread across nearly all of Bali's tourism areas, with the exception of Sanur, which has remained relatively resilient amid market fluctuations. He suggested that accommodation businesses focus on making their offerings more attractive, while also stressing that individual efforts by tourism operators cannot succeed without comprehensive government and community support in addressing infrastructure issues such as traffic congestion and waste management.