Middle East Conflict Dampens Hotel Occupancy in Badung, Capacity Utilisation at Only 41-69 Per Cent

Geopolitical tensions in the Middle East are beginning to impact tourism activity in Badung Regency, Bali. Foreign tourist arrivals have been monitored to decline as flight disruptions trigger passenger backlogs at the airport.

“We are observing an overall decline in the number of tourist arrivals to Bali, and there are passenger accumulations at the airport related to tourists experiencing difficulties with return flights. The Immigration authorities have already provided policies concerning temporary residence permits,” said Head of Badung Tourism Office I Nyoman Rudiarta on Wednesday (11 March 2026).

This decline in activity is being felt significantly at several premier destinations that are usually dominated by foreign tourists. Nevertheless, the regional government continues to prepare facilities to welcome the extended holiday period amid intense competition with international destinations such as Singapore and Thailand.

“Bali remains a top destination despite international and domestic competitors such as Yogyakarta being strong. We continue to maintain intensive communication with destination managers regarding matters that must be prepared together,” Rudiarta added.

Regarding occupancy rates, data shows considerable variation across various classes of accommodation in the Badung area. Based on a sample from dozens of hotels, average occupancy currently remains at a moderate level, though certain properties are still able to record high figures.

“Based on our communication with IHGMA regarding a sample of 40 accommodations, occupancy rates stand at 41 to 69 per cent. However, it cannot be denied that approximately 29 per cent of the total accommodations are still able to reach 70 to 80 per cent,” explained the former Kuta Subdistrict Head.

The Badung Regency Government is now placing great hopes on domestic tourist movement to maintain the stability of the local economy. Local tourists are considered a key factor in boosting hotel occupancy amid uncertainty over global economic and geopolitical conditions.

“Our hope, of course, is that domestic tourists continue to play a significant role in boosting the economy and hotel occupancy in Badung Regency. We hope the current geopolitical situation does not cause significantly adverse effects on our tourism sector in the future,” he said.

Meanwhile, infrastructure improvements continue to be accelerated by the Badung Regency Government to ensure the comfort of visiting tourists. Classical problems such as congestion and flooding are becoming the priority of the Regent’s policy in maintaining the image of Bali tourism.

“Badung’s main business is tourism because 60 per cent of the population depends on this sector, so I ask all parties to maintain the dignity and conduciveness of the region. The regional government, through the Regent’s policy, has also taken concrete steps in addressing congestion and flooding,” Rudiarta emphasised.