Bali Hotels Affected by Iran-Israel War

The Indonesian Hotel General Manager Association (IHGMA) Bali states that the war in the Middle East is affecting hotel occupancy rates during the 2026 Eid al-Fitr holiday. Nevertheless, IHGMA Bali chairman Bagus Ngurah says the impact is not uniform. “Hotels targeting the Middle Eastern market and parts of Europe are directly affected with substantial declines in occupancy, such as those in the Nusa Dua, Sanur, and Ubud areas,” Bagus told Tempo on Thursday, 26 March 2026. Meanwhile, hotels in areas with segments of Australian, Asian, and domestic tourists are experiencing a fairly good surge in occupancy during the Eid period. Bagus says the increase in hotel occupancy during the 2026 Eid period is filled by the domestic market. Based on data from IHGMA Bali members, the average hotel occupancy rate during this year’s Nyepi–Eid period reached 75 to 80 percent. This figure is an increase of around 10 to 12 percent compared to 2025. IHGMA Bali is concerned that the geopolitical crisis in the Middle East is ongoing for a long time. If that happens, says Bagus, hotels will shift to the same market, which could trigger a price war. “There is also concern that rising global oil prices will impact increases in domestic ticket prices,” Bagus stated. Bagus says hotels are pursuing several strategies to boost occupancy. First, shifting market focus to domestic, Asian, and Australian tourists, who are relatively more stable against the impact of the Iran-Israel war. Second, optimising digital distribution channels by strengthening promotions through online travel agents. The third strategy is offering value-added packages. “Hotels tend to maintain room rates by adding extra value, such as food and beverage packages, spa services, or other hotel products, to maintain competitiveness without significantly lowering rates,” Bagus said.