Bali Hotel Occupancy Remains Steady Amid Middle East Conflict, Here Are the Reasons

Bali hotel occupancy remains steady at around 60 percent amid escalating tensions between the United States, Israel and Iran since Friday 28 February 2026. This was disclosed by I Gusti Agung Rai Suryawijaya (ARS), Vice Chairman of the Indonesian Hotel and Restaurant Association (PHRI) Bali, to Kompas.com on Wednesday 4 March 2026. ARS emphasised that although visits by Middle Eastern tourists to Bali have tended to decline, this has not had a significant impact on hotel occupancy in Bali. He gave an example: if 15 international flights to Bali were cancelled, the same number of flights departing Bali to Europe and the Middle East would also be affected. Thus, there has not been much change in guests staying in Bali’s hotels, specifically for European and Middle Eastern tourists affected by the conflict. ‘The current issue here, of course, is something we can try to manage. There is some responsibility also lying with the airlines and therefore those stranded; hotels will participate in this overstay,’ he said. Hotels that cooperate with certain airlines, ARS said, should offer special accommodation rates to affected tourists. Overstay fees are waived for foreigners experiencing overstays due to the situation, provided they attach a declaration from the airline or the relevant airport authorities. ‘Usually, overstays incur a daily fine of Rp 1 million. At present, they are being offered for free while reporting that they are still stranded at Ngurah Rai International Airport Bali,’ he explained. Furthermore, ARS said that the average Bali hotel occupancy of around 60 percent is normal for this month, given that early March is not a peak holiday season. ‘The high season has not started yet because the high season usually begins in June, July, August, September, and October,’ concluded ARS.