An Academic Look at Bali's Villa Sector

(4/21/2007)

The Indonesian language Bali Post, recently published the results of a research project conducted by 17 students at Bali's Hotel & Tourism Institute (STP) examining Bali's villa sector. Their survey, limited to villas in the Badung Regency of Bali covered 624 villas including 3,958 rooms.

Some of the results from the student's research project, include:

• 54% of the villas surveyed were commercial operations, 25% were private villas and 21% were being used on a mixed commercial-private basis.

• 45.2% of the villas were owned by Indonesians (both Balinese and non-Balinese), 39.4% were owned by foreigners, and 15.4% were jointly owned by Indonesians and foreigners. The survey showed that most foreign-owned villas were built on land owned by Indonesians.

• A review of those choosing to stay in villa accommodation showed that 36.79% were Europeans, 30.71% were Asians, 19.29% were Australian, 11.79% were Americans, and only 1.42% were from the domestic Indonesian market.

• The average age of guests staying in visas was between 26-55 years, with family holidays the basis for almost all stays.

• Many of the villas reviewed by the students featured facilities and services rivaling those offered by hotels in Bali, including: private kitchens, plunge pools, mini-bars, main swimming pools, Jacuzzis, restaurants, spa services, and a gym.

• Most of those staying in villas were professionals from the upper economic groupings.

• Most guests had no idea whether or not the visa they had rented was a legal or illegal accommodation operation.