Bali Turns to Europe While The Number of Chinese Tourists Falls
Trade war between USA and China affects tourism in Indonesia. Hotel Investment Strategies LLC Founder & CEO Ross Woods said, the visits of Chinese citizens to the Island of the Gods decreased from around 1.4 million in 2018 to 1.17 million in 2019 or by 14%. The decline in the arrival of citizens of China will continue this year with a predicted number of 1.113 million or a 4.9% decline.
With uncertainty surrounding the Chinese market, Indonesian tourism authorities are now directing attention to marketing in Europe.
The arrivals of visitors from Europe in 2019 increased by 6.6% in comparison to the numbers of the previous year.
"We expect a surge of visitors from Europe in 2020 to grow by 17% and to reach 1.7 million", said Woods.
Australia remains the main market for Bali. The number of visitor arrivals from Australia reached 1.2 million in 2019, 5.5% more than in 2018.
According to Woods, hotels in Bali have reached the occupancy rates of more than 60%. The lowest point ever achieved in the last years was 61.5% in 2014 and the highest 67.8% in 2018.
Based on hotel performance in the period January to October 2019 , Woods tells the average occupancy rate for five-star hotels in 2019 was 56.1%.
This figure is 8.8% lower compared to the previous year. Whereas for 2020, Woods predicts an increase in occupancy rates for 5 star hotels to 60.5%.
Woods said, in the period from 1990 to 2003, the average length of stay in five-star hotels was four nights. However, this number has continued to decline since 2014 to only 3.42 and 3.05 nights the following years.
"We predict the average length of stay to be 3.08 nights in 2019 and 3.14 in 2020 for five-star hotels," Woods concluded.