In Indonesia’s Bali, hotels on sale for cheap as coronavirus hammers tourism

With no tourists and no income courtesy of the pandemic, struggling owners on the resort island have been forced to put their properties up for sale

While major global chains have the financial firepower to stay afloat, smaller hotels at the budget end of the market are struggling to survive

Reading Time:3 minutes

A cleaner pictured in a hotel in Bali earlier this month. Photo: EPA

Published: 11:25am, 30 Jun 2020Updated: 8:29pm, 30 Jun 2020

Gone are the Australian surfers and Chinese tour groups. Also missing are yoga aficionados seeking inner peace, like Julia Roberts in Eat Pray Love.

With no tourists and no income courtesy of the coronavirus pandemic, struggling hotel owners on the Indonesian resort island of Bali have been forced to put their properties up for sale. Given the dire state of the market, some may have to stomach a loss. For investors with a long view, it’s a chance to grab a slice of paradise on the cheap.

Balangan Wave, a 50-villa resort under construction near its namesake popular surfing beach, has already hit the market, and developer Michael Halim has slashed his asking price to US$9 million from US$17 million in May.

“In the current market, one can’t avoid selling at a loss,” Halim said. “Businesses are closing, there’s cash flow issues.”

People walk past closed souvenir shops in Kuta, Bali, on June 29. Photo: EPA

While the halt to international travel has devastated holiday hotspots from Hawaii to Phuket in Thailand, Bali is more vulnerable than most. Tourism accounts for more than 60 per cent of the island’s economy, providing jobs for everyone from chefs and cleaners at five-star resorts to self-employed guides and drivers.