Today, it’s hard to remember when Bali was a refuge for broke hippies, surfers and backpackers. Over the past two-decades it’s been transformed—by resort development, Western second home buyers and more recently digital nomads—into an increasingly upscale playground.
And the transformation of this Indonesian paradise isn’t over yet, with seven new 5-star resorts due to open by 2027. Ambitious political leaders are even looking to expand the luxury sprawl, setting their sights on neighboring islands like Nusa Penida, just 25-kilometers from Bali, which they say could become the “next Monaco.”
“It’s fast developing,” says Zachary Davidson, Founder of A to Z Travel. “I have seen steadily growing interest from North American travelers and that’s because the island is so rich in culture, offers stunning and diverse landscapes, has an exciting nightlife scene and now a mature luxury market,”
Some of Bali’s new and soon to open luxury hotels include The Regent Hotel Canggu, Anantara Ubud Bali Resort and Mandarin Oriental. They’ll be duking it out with perennial favorites like Four Seasons, Bulgari, Laguna Resort & Spa and St. Regis.
“Bali’s popularity has only increased over the past few years, and with this increase in popularity has sprung a new level of luxury infrastructure,” says Annabel Kaplan of Fischer Travel.
Still, the growth has sparked backlash. The Indonesian government was floating a moratorium to stop the construction of new hotels, villas and nightclubs in Bali, in an effort to curb over tourism—an idea that was abandoned at the start of the year. Nevertheless, some of hospitality’s top brands got the message—perhaps forecasting traveler fatigue before it happens. Many are now looking to utilizing some of the other 17,500 islands that make up Indonesia, rather than restricting themselves to the tourism capital. The islands of Flores, Lombok and Sumba are the primary targets.
Marriott International was one of the first major operators to open in Bali more than 30 years ago and is now one of the first to expand to a less crowded islet. Last year, the brand opened Ta’aktana, a Luxury Collection Resort and Spa in Labuan Bajo—located right on the footstep of Komodo National Park in Flores. It has 70 suites spread out over 16-hectares with seven sea villas designed as traditional conical huts from the indigenous Manggarai people of Flores, seemingly floating on the ocean. The Di’a Spa offers massages, facials and scrubs reflecting the same ancient rituals practiced centuries ago on the island with other facilities including a 24-hour gym, Olympic-sized pools and a library complete a spectacular new addition to the Indonesian luxury hotel scene. (One-bedroom villa starts at $790 per night).
In November, Marriott also opened The Sira on Bali’s island neighbor Lombok. Its villas, beach house and presidential suites include, 24-hour butler service and private pools overlooking the tropical landscape. It’s located with direct access to spectacular waterfalls, Mount Rinjani for volcanic hikes and water sports near the Gill islands. (Beachfront villas starting at $800 per night).
“Planning for our new Indonesian resorts began years ago, reflecting our commitment to immersing travelers in destinations that offer both iconic and off-the-beaten-path experiences,” says Philipp Weghmann, Vice President and Global Brand Leader, The Luxury Collection. “We’re making Indonesia not an “either/or,” but a more differentiated and vibrant exploration of the various islands.”
Also coming to Lombok, which saw a 20 percent increase in tourists in 2023, is Gran Melia. Situated on the south island, surrounded by lush green hills and direct access to crystal-clear waters and pristine beaches for snorkeling, it will have 22 luxury villas on the beachside and more than 100 suites on the mountainside—all with private infinity pools and ocean views—when it presumably opens this year (it was due late 2024).
These island’s have “plenty of open waterfront land for development, while Bali has less—[it’s] much more expensive to buy and build with tons of competition,” says Davidson.
On Sumba, the small but mighty luxury hotel Cap Karoso is the latest opening, and the brutalism-inspired design is unlike anything you’ll find on Bali. Founded by French couple Fabrice and Eve Ivara, who fell in love with the remote region they now call home, created eight different room categories to choose from. The best is the Beachfront Villa with direct access to a private beach, private lounge and open-air swimming pool. (Two-bedroom villas start at $1,100 per night).
“We have begun to see a focus on moving away from the crowds and exploring the more remote and pristine regions,” Kaplan says.
