Notwithstanding the earthquake and the deadly tsunami that hit Indonesia recently, the country remains a preferred destination for business assemblies as well as the regular tourism activities. In the island resort of Bali, for instance, both the hotel and service industries are tipped to grow, the upward movement to be driven largely by upcoming global conferences.
According to Property Report, a series of major business gatherings scheduled to be hosted by Bali from October through December 2018 is expected to increase the overall occupancy in the island. This month, leaders and delegates of the International Monetary Fund (IMF) and World Bank (WB) will make their way to the popular vacation hideaway for their annual meet.
And this coming December, the Global Business Summit by the Federation Internationale des Administrateurs de Bien-Conselis Immobiliers (FIABCI) will take place in Bali, the upcoming event seen to further cement the island’s reputation as a solid destination for high-profile business leaders and executives.
Summit Will Boost Tourism, Related Sectors
The same report indicated that as direct result of the business meetings by international organisations, Bali’s occupancy rate will jump to 75 percent at the close of 2018, a significant improvement from the 68 percent recorded in 2017.
It is forecasted as well that the high demand for accommodation will mostly focus on the premium property market.
“The upcoming supply will probably be dominated by upscale and luxury class hotels,” the report said, quoting an assessment issued by industry experts.
As the hospitality sector in Bali will certainly experience growth, both in short- and long-term prospects, investors will be encouraged to take part on the action. Analysts said investments will pour into the island, buoyed by its largely unblemished status as a bull market.
“Offshore investors are still interested in Bali since it’s a prime market to develop and invest in hotel sector,” the report quoted one investment expert as saying.
Latest Data Underpins Growth Trajectory
The projection that Bali’s tourism, hotel and service sectors heading north is supported by figures that have been dialling up lately. The island’s property price index, specifically in the residential segment saw an increase in the June quarter of 2018, climbing at 185.44 from the 185.23 posted in March.
In addition, the gross rental yield in the same market has maintained its high level, the course notably fuelled by the consistently busy stream of tourism traffic. To date, Bali tourism authorities have reported that around 600,000 visitors have elected to spend their holiday breaks in the island.
The record numbers of tourist arrivals, according to Property Report, was chiefly spurred by the improvements implemented on the Ngurah Rai International Airport, which serves as the main gateway for local and international tourists looking to experience Bali.