Why Hospitality Assets in Bali has Defied COVID Economic Slump

Bali named among top post-pandemic destinations
As one of the world’s top travel destination in Asia, Bali boasts everything nature has to offer from the sprawling expanse of sandy white beaches skirting the islands, scenic lakes, gorgeous waterfalls, iconic rice fields to sacred temples.

It is therefore no surprise that Bali has topped the list of most searched post-pandemic destinations by Indonesian and international travellers alike.

The travel industry has been hit hard by COVID. Prior to that, tourists were flocking to Bali all year round. Astute property investors and international home buyers cashed in on this phenomenon, snapping up properties all over Bali with great fervor and this effect has continued despite the coronavirus pandemic.

Construction activity has also defied any downward trend, fuelled by investor confidence that pent-up travel demand will be a leading factor in the recovery of Bali’s tourism sector. “Although the SARS outbreak in 2003 caused Bali’s foreign visitors to decline by 22.8%, the number recovered by 48% in the following year with occupancy rates and supply of hotels increasing as well” as explained by Leonard Tay, head of Research at Knight Frank.

Here are other key reasons why investors are betting big on Bali in the post-pandemic world

$500bn Rupiah being invested to spur domestic tourism in Indonesia
To stimulate domestic tourism in Indonesia, the Indonesian government has granted 443 billion rupiah to airlines in the form of discounts for flights to local tourist destinations such as Bali. Some 100 billion rupiah is also being allotted to promotional activities to spur domestic tourism.

In addition, the government has launched a joint holiday program called “Cuti Bersama” or collective leave, to prolong holiday weekends and to encourage 4 -day weekends. This has translated into significant increases in search volume for domestic tourist destinations such as Bali, Lombok and Yogyakarta.

In fact, since restarting domestic tourism at the end of July 2020, Bali has seen an increase of more than 100% in domestic arrivals.

Although most would expect the biggest source of Bali tourism to be from international visitors, the island in fact received 10.7 million domestic arrivals in 2019, a much higher figure as compared to the recorded 6.3 million international arrivals. Total revenue generated by domestic arrivals in Bali in 2019, was almost equivalent to the US$8 billion contributed by international tourism.

Bali plans to re-open to international tourists as early as June 2021
On 26th March 2021, the Indonesian Minister of Tourism officially announced the opening of several “Green Zones” in Bali where the plan is to vaccinate the entire community within these zones to make way for safe travel for vaccinated tourists by June or July 2021. The government is also reportedly creating travel bubbles with various countries to boost tourism, such as China, Netherlands, Singapore, the United Arab Emirates, and other Middle Eastern countries, on the back of the government’s success in controlling the coronavirus outbreak in Bali.

One thing is for sure – Bali is a popular hotspot for tourists, and this is unlikely to change, even in the far future.

Canggu, the surfing mecca and cooler underground alternative to its neighbour, Seminyak
Most investors seeking to invest in property in Bali would have probably heard of Seminyak or Kuta, famous tourist haunts known to be thrumming with nightlife. Venture up north from Seminyak and you will find Canggu, a slice of heaven nestled amongst terraced rice paddies and fronted by beaches with waves perfect for surfing.

There are many things that makes Canggu irresistible, from the green juice bars, the arty aesthetic galleries to the local warungs and hideaway hotels. Not too far down the road, city-slick restaurants, co-working spaces, and a thriving coffee scene has sprung up over the years, creating the perfect marriage between the surf scene and the coastal community.

Once a largely rural area away from the tourist-laden areas, Canggu is now capturing the attention of many hungry investors due to its rapid development and stellar location. This up-and-coming area, offers all the amenities that Seminyak and Kuta has, with a touch of tranquility that the other two bustling locations lack.

For that reason alone, construction activity has been most pronounced in Canggu where property boom has seen land value increase 40% – 50% in the last 10 years, driven up by strong interest from foreign investors.

At the heart of it all sits Citadines Berawa Beach Bali
At the heart of Canggu sits Citadines Berawa Beach Bali, a development by award-winning developer Genesis Indojaya. This apart-hotel professionally managed by The Ascott Limited, CapitaLand’s wholly-owned lodging business unit, is one of the leading international lodging owner-operators with more than 770 properties in over 190 cities across over 30 countries in Asia Pacific, Central Asia, Europe, the Middle East, Africa and the USA.

Citadines Berawa Beach Bali is perfectly located just a short walk from the beach and a stone’s throw from coveted tourist hotspots such as Finn’s Beach Club and a plethora of aesthetically-inclined beach restaurants and cafes.

This newly constructed, 100-year leasehold apart-hotel comprises a total of 224 Studio, One-Bedroom and Two-Bedroom units which come fully furnished with serviced kitchenettes and the full range of high-quality facilities a guest would ever need. The property attracts a wide range of guests, such as young families seeking a lovely family vacation, couples enjoying a romantic getaway and digital nomads looking to escape the hustle and bustle of city life.

This prestigious project is developed by a Singapore-Indonesia joint venture – Genesis Indojaya – and its units are available to investors from all over the globe. During the project’s pre-opening sales phase, Citadines Berawa Beach Bali saw astute investors from Singapore, Indonesia, France, China and New Zealand participating in this attractive project. With the completion of construction and the soft launch of the property having already taken place earlier this year, the property is on the cusp of the post-construction sales phase and primed to ride on the post-COVID recovery phase. The world-class brand name and track record of Citadines Berawa Beach Bali operator is a clear competitive advantage and label of quality.

With Canggu on the rise, it is clear to see why investors are still riding the upswing on hospitality assets in Canggu and Bali despite the pandemic. The post-pandemic wave of recovery would indeed be an interesting, lucrative journey.

Interested in finding out how you can be a part of it all at Citadines Berawa Beach Bali? Submit an enquiry to receive our Brochure.

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