Bali’s Hotels and Tourism Embrace Sustainability and Cultural Preservation

Recovery and Growth in Bali’s Tourism Industry

Bali’s tourism and hospitality sectors have undergone significant transformation following the challenges of the COVID-19 pandemic. With tourism accounting for over 65% of the island’s economy, the sector saw a historic rebound in visitor numbers. According to the Bali Hotels Association, international arrivals soared from a mere 51 at the pandemic’s peak in 2021 to over 6.33 million by the end of 2024. This figure not only exceeded pre-pandemic levels but also contributed to a total of approximately 16.45 million visitors, bolstered by a robust domestic traveler presence.

The tourism surge has attracted renewed interest from investors in Bali’s hotel developments. From January to March 2025, the average daily rate for hotel stays reached approximately 2,337,924 Indonesian rupiah (about $233.79), a marked increase compared to the pre-pandemic rate of 1,506,792 rupiah.

Addressing Challenges Post-Pandemic

While the influx of tourists has catalyzed economic growth—5.6% in the first half of 2023—the boom has also sparked concerns regarding oversupply in the commercial real estate market and its environmental impact. In September 2024, the Indonesian government responded to these challenges by imposing a moratorium on new hotel, villa, and restaurant developments in key tourist areas. This decision aimed at regulating tourism growth and safeguarding Bali’s natural resources and cultural heritage.

In January 2025, the newly elected Bali Governor Wayan Koster lifted the moratorium, prompting a need for balanced development. “Ongoing efforts must be made to manage the local environment and resources cautiously,” stated Gottfried Bogensperger, area vice president and general manager at Grand Hyatt Bali. He emphasized the importance of avoiding the pitfalls of mass tourism seen in other popular tourist destinations.

Collaborative Efforts Towards Sustainable Development

The Bali Hotels Association represents more than 155 hotels and resorts, collectively managing over 25,000 rooms. They have initiated discussions with tourism stakeholders on critical sustainability issues, which include enhancing waste management practices, stricter regulations against illegal accommodations, and investing in infrastructure improvements. Planned upgrades include easing congestion in heavily trafficked tourist areas and developing a second international airport to accommodate over 32 million passengers yearly, with initial phases expected to be completed by 2027. Franklyn Kocek, chairman of the Bali Hotels Association, emphasized the organization’s commitment to aligning guest experiences with cultural, economic, and environmental sustainability goals.

The Rise of Sustainable Accommodation

As Bali continues to evolve, the hospitality landscape is increasingly characterized by sustainability and cultural preservation. One notable new development is the Nuanu Creative City, which opened in phases throughout 2024. Dedicated to education, wellness, and sustainable living, the project allocates 70% of its land to green spaces and plans to invest around $350 million in sustainable infrastructure.

Lev Kroll, CEO of Nuanu, highlighted the development’s eco-centric policies, including a strict mandate against the felling of large trees and a commitment to reforestation, having already planted over 20,000 trees in 2024. Kroll anticipates that the creative city will attract approximately 3 million visitors in 2025, a significant increase compared to the previous year.

Other upcoming hotel openings in Bali include the 150-room Regent Bali Canggu, the 216-room Anantara Dragon Seseh Bali Resort, and the 100-room JW Marriott Ubud Resort & Spa, expanding the offerings for mindful travelers seeking sustainable accommodations.

Conclusion

As Bali’s tourism industry adapts to post-pandemic dynamics, the focus on sustainability and cultural preservation remains at the forefront. Collaborative efforts among stakeholders aim to enhance visitor experiences while maintaining the island’s unique heritage and natural beauty. With responsible development practices in place, Bali is poised to emerge as a model for sustainable tourism in the years to come.