Serious concerns emerged at No Vacancy Southeast Asia that the booming Bali hotel market is headed for a crash. Right now average hotel room rates are at all an time of US$150 but many in the industry think they will fall hard when a slew of new properties open over the next six months.

“There are 15 luxury resorts opening an easy taxi ride away from the InterContinental at Jimbaran Bay,” said Mark Flower, Director, Commercial – Southeast Asia, for IHG.

“We are concerned.”

Scott Blume from RajaKamar also felt Bali was headed for a room glut.

“There’s too much hotel development happening in Bali,” Mr Blume said.

Sen Sun-Moon from Horwath HTL said Bali is becoming “very very expensive” for the crucial domestic market and said local infrastructure is under pressure from all the development.

However, he believed that while there may be some short-term pain the longer term outlook remains positive.

That is, if the environment people come to experience in the first place remains intact.

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