Bali’s Tourism Surge Fuels Phenomenal Hotel Expansion with a Strong Focus on Sustainable Travel Options

April 18, 2025 – Travel And Tour World

Bali, the famed holiday destination, is experiencing a remarkable resurgence in tourism, catalyzing a significant expansion in the hotel sector. This expansion comes with a steadfast commitment to sustainability, cultural preservation, and eco-friendly practices designed to shape the island’s tourism future.

In the past year, Bali has seen a dramatic uptick in incoming tourism, prompting a notable increase in the interest for hotel development throughout the island. According to the Bali Hotels Association, visitor arrivals surged from a pandemic low of just 51 international tourists in 2021 to over 6.33 million by the end of 2024. This remarkable growth has even surpassed pre-pandemic figures, eclipsing the 6.27 million international arrivals recorded in 2019. Overall, combined with domestic tourism, total arrivals reached an astounding 16.45 million in 2024, reflecting a surge from nearly 15.2 million the previous year. Australia, India, and China have emerged as the top three markets for inbound tourists.

Government Initiatives and Economic Recovery

Following the pandemic’s severe impact, the Indonesian government, alongside provincial authorities, implemented a series of recovery initiatives aimed at stabilizing the tourism economy. These measures included grants and incentives totalling up to 3.7 trillion rupiah (approximately $370 million), as well as tax relief for hotels, restaurants, and travel agencies. The infusion of support not only assisted struggling businesses but also attracted a growing number of digital nomads who are drawn to Bali’s inviting lifestyle and affordability. As a result, these initiatives contributed to a notable 5.6% economic growth in Bali by mid-2023. However, the resurgence of tourism brings its own set of challenges. The dramatic spike in property investments raises concerns of potential oversupply in the real estate market by late 2024, and increased tourism numbers exert pressure on local resources. In response, the Indonesian government initiated a moratorium in September 2024, halting the construction of new hotels, villas, and restaurants. This decision was aimed at managing tourism expansion while protecting the island’s natural environment and safeguarding local communities against rising costs of living and changes attributed to increased Western influence.

Lifting Restrictions and Infrastructure Development

In January 2025, newly elected Governor Wayan Koster lifted the moratorium, allowing hotel and tourism property developments to proceed. Concurrently, the Bali Hotels Association (BHA) has been working collaboratively with tourism stakeholders to address pressing concerns including infrastructure development, illegal accommodations, sustainability measures, and policies that balance economic growth with environmental protection.

Plans are underway to enhance infrastructure, with projects aimed at reducing congestion in southern Bali and constructing a second international airport in the northern region. The new airport is anticipated to accommodate over 32 million passengers annually, with the first runway expected to be operational by 2027. Additionally, a new toll road is planned to connect the northern and southern regions of the island.

Embracing Sustainability in Hospitality

As Bali’s hospitality sector grows, sustainability remains a focal point for new developments. A prime example of this commitment is the Nuanu Creative City, which began its phased opening throughout 2024. Designed to integrate educational, artistic, wellness, and natural spaces, 70% of the hotel’s land has been dedicated to green space. Unique accommodations include treehouse-inspired guest rooms at Oshom Bali, along with attractions like a butterfly dome, orchid garden, and botanical nursery, which boasts an impressive recycling rate of over 80% of its solid waste. Nuanu aims to attract 3 million visitors by 2025, a substantial increase from the 500,000 visitors recorded in 2024. Other notable hospitality projects set to unveil in 2025 include the 150-room Regent Bali Canggu, the 216-room Anantara Dragon Seseh Bali Resort, and the 110-room Mandarin Oriental Bali, which is slated to open in 2027. —

Bali’s focus on sustainable tourism development, coupled with its robust recovery and expansion plans, promises to shape the island’s success in the global tourism market while ensuring cultural and environmental preservation for generations to come.