PHRI: Bali hotel occupancy around 80% despite Anak Krakatau flight disruption

Badung — Hotel occupancy in Bali was holding at around 80 percent on Monday, 7 September 2026, despite flight disruption linked to the eruption of Anak Krakatau, according to the Bali chapter of the Indonesian Hotels and Restaurants Association (PHRI). The estimate was given by PHRI Bali deputy chairman I Gusti Agung Ngurah Rai Suryawijaya, who said the island was in its July–October high season.

Speaking to detikBali, Rai said the high season that runs from July through October was supporting demand and that some hotels were recording occupancy above the island-wide average. He did not break down the estimate by district or hotel category, and the association did not disclose how many properties were covered by the 80 percent figure.

Rai said foreign visitor arrivals to Bali remained stable at around 17,000 per day, with Australia, China and India among the leading source markets. He noted that the rankings of these markets can change from period to period.

Flight disruption seen as limited for hotel demand

The eruption of Anak Krakatau disrupted a number of flights serving I Gusti Ngurah Rai International Airport, particularly domestic routes to and from Jakarta, according to Rai. He described the impact on hotel demand as limited, saying the situation had not led to a broad decline in occupancy.

Some travellers whose flights from Bali to Jakarta were delayed extended their stays, while passengers travelling from Jakarta to Bali were able to reroute via other cities, Rai said. PHRI Bali’s estimate indicated that, as of 7 September, aviation disruption associated with the eruption had not yet translated into a significant downturn in accommodation demand.

Key figures cited by PHRI Bali included:

• Average hotel occupancy in Bali at about 80 percent
• High-season period identified as July through October
• Foreign visitor arrivals of roughly 17,000 per day
• Australia, China and India among the main source markets

Airfare costs seen as a separate risk

While PHRI Bali reported resilient international demand, Rai voiced concern about the impact of rising airfares on domestic tourism, saying Indonesian travellers tend to assess total trip costs before deciding to take a holiday. He argued that higher ticket prices could weigh on domestic visitors more than on foreign tourists, given Bali’s strong appeal in international markets.

His comments came after the Ministry of Transportation raised the maximum fuel surcharge that airlines may apply to economy-class domestic tickets to 40 percent of the fare ceiling, in response to higher aviation fuel prices. According to the ministry and several media reports, average aviation fuel prices reached Rp23,315 per litre on 1 September 2026, around 6.5 percent higher than in the previous period.

Officials have stressed that the 40 percent figure is a maximum surcharge on the regulated upper fare limit and not an automatic increase in ticket prices. The Ministry of Transportation has estimated that the adjustment in fuel surcharge would translate into an average ticket price increase of about 7–8 percent, and that airlines are not required to charge the maximum level.

Looking ahead, PHRI Bali said it hoped Bali would receive around seven million visitors in 2026 and expressed optimism that the island could exceed that target. The association did not specify whether the target referred to foreign arrivals or total visitor numbers.

Rai’s assessment suggests that Bali’s July–October high season helped sustain hotel occupancy at the time Anak Krakatau’s eruption disrupted some air services, even as higher fuel costs and potential fare increases emerged as a separate concern for domestic travel.

Sources

• detikBali
• CNN Indonesia
• Directorate General of Civil Aviation, Ministry of Transportation
• Okezone Economy
• Kontan
• Tirto.id