Bali has long been a favorite destination for tourists from around the world, and with its growing population of expatriates and digital nomads, the demand for affordable accommodation continues to rise.
Among the many options for lodging, boarding houses in Bali have emerged as a promising business opportunity. The appeal lies in their affordability and the steady stream of visitors seeking long-term stays. This article explores why starting a boarding house in Bali can be a profitable venture and how you can take advantage of this growing demand.
Why Bali is Ideal for Boarding Houses
Bali remains one of the most popular destinations in Asia for both leisure and business travel. The island draws a steady influx of tourists every year, but recently, there’s been a significant rise in expatriates and remote workers moving to the area.
Places like Kuta, Ubud, and Seminyak have become hubs for individuals seeking a mix of work and leisure. Many of these visitors prefer affordable, long-term accommodation options that offer a home-like feel, making boarding houses in Bali a prime business opportunity.
As more people choose Bali as their home base, the demand for boarding houses has increased. They cater to individuals who want a cost-effective place to stay without the formality or price tag of traditional hotels. Remote workers, digital nomads, and expatriates often seek out these more budget-friendly living arrangements, ensuring a steady stream of customers year-round.
The Benefits of Operating a Boarding House in Bali
Investing in boarding houses in Bali offers several key financial benefits. The primary advantage is the constant demand for affordable, long-term accommodation. With Bali’s tourism sector booming and more expatriates making the island their home, you can expect reliable cash flow from your boarding house business. These properties often cater to international visitors who are staying in Bali for extended periods, and they can be more affordable compared to hotels or private rentals.
Additionally, boarding houses typically require lower operating costs compared to large hotels or luxury resorts. This makes them an appealing option for entrepreneurs looking to enter the real estate market with a lower upfront investment. Furthermore, they offer the potential for a high return on investment, especially if they are located in popular areas frequented by tourists and expatriates.
Read More: 7 Steps to Start Villa Rental Business in Bali
Regulations and Licensing
Before embarking on the journey to open a boarding house in Bali, it’s essential to understand the local regulations. The Indonesian government has specific rules and zoning laws regarding the operation of accommodation businesses, including boarding houses. These businesses must comply with the necessary permits and licenses, and owners should be aware of taxes that apply to their operations.
Bagus Alit Sucipta, the Deputy Regent of Badung, stated, as reported by Balipost.com, “We will make regulations regarding this issue, so that there is retribution from foreign entrepreneurs building villas, but the permits are not for villas.” This regulatory shift aims to ensure that boarding houses in Bali, particularly those targeting international guests, are appropriately licensed and taxed. This move is expected to streamline the process for businesses while ensuring that local authorities can manage the increasing demand for accommodation.
It’s important to stay informed about these regulations and obtain the proper licenses before starting your business. This will not only protect you legally but also help you avoid unnecessary fines or closures.
Challenges and Risks to Consider
While the business opportunity for boarding houses in Bali is promising, there are challenges to consider. One of the main risks involves competition. Bali’s accommodation market is saturated with options, from luxury hotels to budget-friendly guesthouses, so standing out can be difficult. To overcome this, you’ll need to focus on offering exceptional service and competitive pricing.
Additionally, maintenance costs for boarding houses can add up, especially if you’re managing multiple properties. Regular upkeep is necessary to maintain the quality of the property and attract new guests. Market fluctuations and economic changes, like shifts in tourism trends or global crises, can also impact demand.
Bagus Alit Sucipta also emphasized that “this is not a task that can be completed quickly. We will do this gradually,” referring to the measures the local government is taking to regulate such accommodations. This highlights the importance of staying adaptable and resilient as an investor.
Read More: A Guide to Owning Property in Bali Using PT PMA
How to Get Started
Starting a boarding house in Bali requires careful planning and strategy. The first step is identifying a suitable location. Popular tourist spots and areas with a high concentration of expatriates or remote workers are ideal. Once you’ve found a location, securing financing will be the next step. You can either finance the property through savings or by seeking investors who are interested in the growing Bali market.
After securing the property, you’ll need to apply for the necessary licenses and permits. Be sure to research local laws regarding zoning, safety standards, and business taxes. Once everything is in place, it’s time to market your boarding house. Use digital marketing tools such as social media, websites, and online booking platforms to reach a broader audience.
Tapping into Bali’s Boarding House Market
The growing demand for long-term, affordable accommodation makes boarding houses in Bali an attractive business opportunity. With the right location, strategy, and understanding of local regulations, you can tap into this lucrative market. Bali continues to be a top destination for tourists and expatriates alike, ensuring that your investment in a boarding house business will likely yield steady returns for years to come. As the region continues to develop, the potential for growth in the boarding house market remains strong.
Ready to Start Your Boarding House Business in Bali?
If you’re considering entering the boarding house business in Bali, now is the perfect time to take the leap. By understanding the local market and regulations, you can create a profitable venture that offers both a steady income and valuable services to the island’s growing community of expats, students, and tourists.
Partner with Seven Stones Indonesia to simplify your entry into Bali’s real estate market. From providing comprehensive listings of potential properties to navigating permits, taxes, and property management, we’re here to guide you every step of the way. Contact us today at our Bali office at Sunset Road No. 777, Seminyak, or text us at +62 877-7711-7701. Let’s turn your boarding house business dream into a successful reality!
Source: balipost.com, rumahbali.id, padalaku.com
Image: agoda.com