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Why are Hotels so Cheap in Bali? Check Out What We Found!

By: Swena Kalra

Edited By: Scott Sidders

Updated on November 6, 2023

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Bali is one of the most popular tourist destinations in the world. It is renowned for its beaches, temples, and other attractions. Visitors to Bali can enjoy several activities, such as swimming, sunbathing, surfing, diving, and snorkeling. There are also many cultural attractions, such as Balinese dance and music.
When it comes to accommodation, Bali offers a wide range of options. There are luxury resorts, mid-range hotels, and budget-friendly guesthouses. Visitors can find accommodation to suit their needs and preferences. The best part is that Bali offers excellent value for money. You can find affordable accommodation without compromising on quality or location.


So, why are hotels so cheap in Bali? There are several reasons. Here are some of the most important ones:

1. Relatively Weak Indonesian Rupiah

Indonesian Rupiah currency

The relative weakness of the Indonesian Rupiah is one of the main reasons hotels are so cheap in Bali. In recent years, the Rupiah has lost significant value against major currencies like the US Dollar and the Euro. As a result, prices for goods and services denominated in foreign currencies have become much more expensive for Indonesians. However, prices for goods and services in Rupiah have remained relatively stable. This has made Bali an attractive destination for foreign tourists looking to get more bang. In addition, the Rupiah's weakness has made it cheaper for domestic tourists to travel abroad, boosting the tourism industry.

2. There is an Ample Supply of Hotels

Sunrise in a luxurious villa with swimming pool in Bali

Bali is a beautiful Indonesian island popular with tourists from all over the world. One of the reasons that Bali is so famous is that it is relatively cheap to visit. Part of the reason for this is that there is an ample supply of hotels on the island. With so many hotels competing for business, rates are kept low to attract guests. In addition, many of the hotels in Bali are family-run businesses, which helps to keep costs down. As a result, visitors to Bali can enjoy beautiful beaches and stunning scenery without spending a fortune on accommodation.

3. Bali is a Budget-Friendly Destination

Lombok island shores

Bali is an excellent destination for budget-conscious travelers. Not only is it relatively cheap to visit, but there are also many ways to save money while on the island. For example, you can find affordable accommodation, eat at local warungs (restaurants), and take advantage of the many free activities available. In addition, haggling is commonplace in Bali, so you can usually get a better price for goods and services if you are willing to bargain. This makes Bali an ideal destination for those looking to travel on a tight budget.

4. Low Cost of Living

Bali, one of the central streets of Ubud, full of bars, restaurants and stores.

One of the things that makes Bali so attractive is the low cost of living. Hotels are one of the most significant expenses for travelers and are affordable in Bali. A basic hotel room can cost as little as $10 per night, and even luxury hotels are relatively cheap. Prices for food and other essentials are also relatively low. As a result, it is possible to live quite comfortably in Bali on a relatively small budget. Although the cost of living has risen in recent years, it is still significantly lower than in most other parts of the world.

5. Fewer Regulations

Drone view of Nusa Dua beach coastline in south Bali

The hotel industry in Bali is booming thanks to several factors, including the relatively low cost of construction and land. Additionally, there are fewer regulations governing hotels in Bali than in other parts of the world. Hotel owners do not have to spend as much money on compliance costs. Additionally, it can be easier to get building permits and other approvals needed to construct a hotel in Bali than in other countries. As a result, the number of hotels in Bali has multiplied in recent years, providing visitors with a wide range of choices when it comes to accommodation. With so many hotels to choose from, competition is fierce, and prices are kept low.

6. Large Tourism Industry

Couple in front of the Ulun Danu Tamblingan Temple

Bali is a beautiful island with a lot to offer tourists. From its stunning beaches to its vibrant culture, there is something for everyone in Bali. As a result, the tourism industry is booming, which has helped keep hotel prices low. With so many people visiting the island, hotels are constantly busy, and they must keep affordable rates to attract guests. In addition, the tourism industry provides many jobs for locals, which helps boost the economy and keep prices low.

7. The Government is Encouraging Tourism

Traditional Balinese Kecak Dance at Uluwatu Temple, Bali

The government of Indonesia is working hard to promote Bali as a tourist destination. It has invested heavily in infrastructure, including building new airports and roads. It has also created special economic zones to attract foreign investment. In addition, the government is working to improve the business environment, making it easier for hoteliers to set up and operate their businesses. These efforts have helped to make Bali one of the most popular tourist destinations in the world, and this has kept hotel prices low.

Now that you know some of the reasons why hotels are so cheap in Bali, you can start planning your trip. With its beautiful beaches, stunning scenery, and vibrant culture, Bali is an excellent destination for budget-conscious and luxury travelers. Whether you're looking for a cheap place to stay or a luxurious resort, you'll be able to find what you're looking for in Bali. We've got an article focused on what to do and interesting facts about Bali, read more by clicking here.

When finding cheap accommodation in Bali, there are a few things to remember. First, it's essential to book your hotel in advance. Hotels on the island tend to fill up quickly, so if you wait until the last minute, you may be unable to find a room. Also, avoiding traveling during the high season is a good idea. Prices are typically higher during this time, as demand is higher. If you're flexible with your travel dates, you can often find cheaper rates by traveling during the shoulder or low season. Finally, don't be afraid to bargain. Many hotels will be willing to negotiate on price, so if you're not happy with the rate you're being offered, ask if there is any room for negotiation. With a little effort, you can find cheap hotels in Bali that offer excellent value for money.

We hope you have a fantastic trip and we wish you all the best!

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