Bali Hotels and Tourism Industry Embraces Sustainability Amid Surging Visitor Numbers

By Selena Oh, HNN Contributor
April 17, 2025 | 1:22 P.M.

In a remarkable turnaround since the pandemic, Bali’s tourism and hotel industry is focusing on sustainability and cultural preservation while facing the challenges of rapid growth. With international visitor arrivals exceeding pre-pandemic levels, the island is navigating a new era of development that seeks to balance economic gain with environmental and social responsibility.

A Resurgence of Tourism

After suffering significant declines during the COVID-19 pandemic, Bali has experienced a resurgence in tourism, recording more than 6.33 million international arrivals in 2024, a substantial increase from only 51 at the pandemic’s peak in 2021. This influx surpasses the previous benchmark of 6.27 million arrivals in 2019, as reported by the Bali Hotels Association (BHA). When domestic tourism is factored in, total arrivals reached 16.45 million, a significant rise from nearly 15.2 million in 2023. CoStar data illustrates the financial recovery, with the average daily rate for hotels reaching 2,337,924 Indonesian rupiah (approximately $233.79) in 2024, a marked increase from 1,506,792 rupiah in 2019. In light of this revival, significant government initiatives—totaling grants and incentives of up to 3.7 trillion rupiah (around $370 million)—have been implemented to assist tourism-related businesses through tax relief and other support measures. Furthermore, Bali has attracted digital nomads drawn to its strategic blend of affordability and natural beauty, spurring further economic growth.

Addressing Challenges and Implementing a Moratorium

However, the tourism industry’s recovery also brings forth new challenges, including concerns over potential oversupply in commercial real estate spurred by accelerated investment from property developers. In response to these concerns, the Indonesian government announced a moratorium in September 2024 on new hotel and restaurant developments within popular resort areas such as Canggu, Uluwatu, and Seminyak. This measure aimed to regulate tourism growth, protect natural resources, and preserve the cultural fabric of Balinese heritage.

The recently elected Governor of Bali, Wayan Koster, lifted the moratorium in January but emphasized a cautious approach to future developments. Gottfried Bogensperger, Vice President and General Manager of the Grand Hyatt Bali, indicates a consensus among industry leaders on the importance of sustainable practices to maintain the island’s appeal for future generations.

Committing to Sustainability

Amid this dynamic landscape, Bali’s hospitality sector is increasingly focusing on sustainability. The BHA has engaged in extensive discussions with stakeholders to advocate for improved infrastructure and more stringent regulations to address illegal properties and unplanned development. Efforts are also being directed toward enhanced waste management and responsible tourism initiatives.

Infrastructure improvements are planned to alleviate congestion, which includes a second international airport intended to serve over 32 million passengers in northern Bali and a new toll road to facilitate better connectivity across the island. One runway of this new airport is expected to be operational by 2027. ## New Developments with an Eco-Friendly Focus

Several new hospitality projects have emerged, emphasizing sustainability and cultural preservation. Noteworthy among them is Nuanu Creative City, which opened in stages in 2024. This innovative development encompasses five hotels committed to maintaining 70% of its land as green space. With a variety of unique accommodations, including treehouse-style rooms at Oshom Bali, Nuanu Creative City plans to attract 3 million visitors in 2025, a sharp increase from the 500,000 visitors in 2024. Nuanu’s CEO, Lev Kroll, highlighted the commitment to eco-friendly practices, including a ban on tree cutting, a vehicle-free zone, and robust recycling efforts. The city boasts amenities such as a butterfly dome and botanical nursery, along with ambitious plans to invest an estimated $350 million into its infrastructure.

Future Prospects

As Bali continues to evolve as a popular travel destination, the BHA is committed to ensuring that the growth of the tourism sector aligns with the island’s cultural, economic, and environmental sustainability goals. Notable hotels expected to open in 2025 include the Regent Bali Canggu, Anantara Dragon Seseh Bali Resort, JW Marriott Ubud Resort & Spa, and the Mandarin Oriental Bali slated for completion in 2027. The island’s tourism industry stands at a crucial juncture, where balancing growth and sustainability will determine the lasting impact on its natural beauty and cultural heritage. With a proactive approach to development and responsible tourism practices, Bali aims to secure its place as a premier destination for generations to come.

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