Why Bali’s hotel occupancy eased in 2025 despite record arrivals

Bali — Bali’s average hotel occupancy eased to 74% in 2025, down 2.3% year-on-year, according to Horwath HTL’s Bali Hotel & Branded Residences 2026 report. The pullback came even as international arrivals reached a record 6,948,754, up 9.72% from 6,333,360 in 2024, based on official provincial tourism statistics.

The provincial tourism office’s 2025 statistics describe the foreign arrivals figure as “temporary data,” but confirm that direct international arrivals to Bali rose by 9.72% between 2024 and 2025. A separate summary by Bali Hotels Association reports the same total of 6,948,754 international visitors and the same 9.72% growth rate for the year.

That combination—strong visitor growth alongside slightly lower hotel occupancy—is central to understanding the island’s tourism performance in 2025. Demand can remain historically strong while the share of available hotel rooms occupied falls, particularly when the number of rooms or properties in the market increases.

What the 74% figure shows

In its 2026 report, Horwath HTL states that “Bali hotels saw a slight softening in overall performance in 2025, with occupancy declining by 2.3% YoY to an average of 74%”. The firm emphasises that occupancy remains at “historically strong levels,” pointing to continued resilience in demand despite the modest pullback.

The relevant section of the report is labelled “Bali Hotel Performance,” and the commentary focuses on hotels and branded hospitality products. Occupancy in this context is a utilisation measure, comparing rooms sold with rooms available over a stated period, but the meaning of a market-wide average depends on which properties are counted and how room inventory is defined.

Horwath HTL’s analysis also highlights differences across submarkets. It notes, for example, that Nusa Dua led all submarkets on occupancy at 79.2%, supported by strong meetings and leisure demand, while Ubud’s occupancy eased to 68.6% amid robust average daily rate (ADR) growth. These variations underscore that a single provincial benchmark cannot describe performance in every location on the island.

How strong demand coexists with softer occupancy

The provincial tourism statistics show that foreign tourist arrivals climbed from 6,333,360 in 2024 to 6,948,754 in 2025, a 9.72% increase. Bali Hotels Association reports the same totals, noting that the island “welcomed 6,948,754 international visitors in 2025” and describing the year-on-year increase as +9.72%.

Official data also confirm a diversified mix of source markets. Australia remained the largest contributor, accounting for 23.44% of foreign arrivals, with India and China following among the main markets. This broad base of demand limits reliance on any single country.

Yet Horwath HTL still records a slight decline in hotel occupancy. One explanation is increased supply: if room inventory grows faster than demand during parts of the year, occupancy rates can soften even when total visitor numbers are rising. The report notes that overall hotel performance “eased” in 2025 but does not quantify total new room additions at the provincial level.

Another factor is the wider accommodation mix. Provincial statistics track star-rated and non-star hotels separately, and also show significant use of villas, guesthouses and other lodging types, which can affect how hotel occupancy benchmarks relate to the broader tourism economy. High and diversified demand can therefore sustain overall accommodation use even as specific hotel metrics adjust.

Using the 2025 benchmarks

For analysis and investment decisions, the 74% figure is best treated as a benchmark for the hotel performance sample tracked by Horwath HTL rather than a census of all accommodation on the island. Likewise, the 6,948,754 foreign-arrivals total represents direct international visitors recorded by the provincial statistics office, not all travellers passing through Bali.

Comparisons with future years will be most meaningful when they use consistent methodologies: the same property sample, the same definition of occupancy and the same treatment of new supply. Without those details, the reported 2.3% decline in hotel occupancy indicates a modest normalisation from elevated post-reopening levels, not a collapse in tourism demand.

Sources

• Statistik Pariwisata Provinsi Bali 2025 (Disparda Bali)
• Bali Hotels Association – Monthly passengers statistic 2025
• Horwath HTL – Bali Hotel & Branded Residences 2026