Bali: No Tremor for Tourism Activities after Agung Volcano Eruption

Bali made headlines at the end of last year due to the eruption of Volcano Agung, and although international air arrivals declined by 9.6% in November and 29.7% in December, Indonesia’s tourism icon still managed to grow total arrivals by 16% last year.

Each year over the past five years has brought new records for Bali, and 2017 was no exception to the rule. According to data collected by Indonesia’s Ministry of Tourism, Bali last year welcomed 5.6 million international arrivals, a number up by 16.3%, confirming its flagship status of Indonesia tourism. The island alone generates over 40% of all international tourist arrivals to the country, far ahead of Jakarta, Indonesia’s second most visited destination with 2.88 million arrivals, or 20% of market share.

The tremendous rise of Chinese, Russian and Indian tourist numbers helped mitigate the effects of the Agung volcano on the island’s tourism. In 2017, Chinese travellers generated 1.37 million arrivals followed by Australia with 1.06 million visitors. India is now the third largest market to Bali as it generated 265,000 arrivals last year. Other important markets to Bali are the UK, USA, France, Germany, South Korea and Singapore.

As the volcano issue failed to deter the popularity of Bali, growth in arrivals already resumed in January and February. After being worried at the end of the year by declining occupancy rates, Bali’s hotel industry looked with optimism into the future. According to a report of Horwath HTL/ C9 Hotelworks’ on Bali’s hotels released early February, the island will continue to witness growth in arrivals. The report notes that the influx of visitors had a positive effect on Bali hotel performance. From January to October 2017, the RevPAR (Revenue per available room) was up 7% while the average occupancy reached 75% – a growth of three points over 2016.

Bali will add some 13,000 rooms by 2020, increasing its hotel portfolio from 42,000 to 55,000 rooms. 2018 will see nearly 6,000 rooms in 38 hotels being added.

STAND No. 540

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