A member of the management board of the Bali Tourism Industry Association (GIPI-Bali), Bagus Sudibya, told Bisnis Bali that the number of hotel rooms for sale in Bali is far outstripping the number of tourism arrivals.
This oversupply of hotel rooms has resulted in low occupancies, says Sudibya.

The GIPI-Bali official explained that Bali has an estimated supply of 125,000 rooms. Continuing, he extrapolated that if this total is multiplied by 365 days, Bali has a resulting annual inventory of 45.625 million room nights. With Bali currently achieving around 10 million domestic and international visitors staying 2 to a room for an average 3.2 nights, then only 16 million room nights are consumed in a single year.

This sizeable gap between the available inventory of rooms on sale and visitor room night is made even direr if villas and informal accommodation room inventories are included in the calculations.

But even without considering rooms not included in the inventory count, Sudibya says an economically non-viable average occupancy of around 35% results from the growing state of over-supply.

Sudibya described the current room supply situation as “critical” (parah).

Despite a lack of visitors to fill Bali’s huge array of hotels, licenses continue to be issued the regencies for new hotels with a number of new hotel projects are now under construction.

Source: http://www.balidiscovery.com/messages/message.asp?Id=15985