PHRI Bali links Badung property sales to oversupply and permit concerns

Badung — On Sept. 30, 2026, the Bali chapter of the Indonesian Hotel and Restaurant Association, known as PHRI Bali, said some tourist properties offered for sale still reported occupancy rates ranging from above 60 percent to 75 percent. The association said a sale did not necessarily indicate poor operating performance.

The comments came as reports identified a growing number of villas and other tourist accommodations being marketed for sale in Bali. A random field survey conducted with the Bali Tourism Office found that villas made up much of the property being offered, according to the reports.

Oversupply could affect prices and permits

For a foreign resident or visitor, the issue matters because the accommodation market can affect the availability, pricing and operating status of places to stay in Badung and elsewhere in Bali. Occupancy figures cited by PHRI describe existing business performance; they do not by themselves establish that every property listed for sale is financially distressed.

I Gusti Agung Rai Suryawijaya, a PHRI Bali official, attributed the listings to several possible factors. These included the rapid growth of accommodation supply without matching growth in demand, which could intensify competition and lead to a price war. The reports said the concern applied across hotels, villas, condotels, guesthouses, apartments and other tourist accommodation.

The reports also identified incomplete permits as a separate concern. Some villas were described as having been built in green-belt areas, where strict government rules can prevent them from operating. Properties marketed through online platforms must comply with government requirements, including permits and a regional taxpayer identification number, according to the reporting.

PHRI said occupancy above 60 percent could still represent healthy operations, based on Suryawijaya's experience operating hotels for about 43 years. One report said he proposed maintaining accommodation occupancy at about 90 percent before allowing wider development, but the reports did not state that this had become a government rule.

Sources

• Bali Post — established regional news organisation
• NusaBali — established regional news organisation
• detikBali — established national news organisation
• rri.co.id
• bali.tribunnews.com