I have visited Labuan Bajo many times for both business and pleasure, and I recently had the opportunity to return. Before COVID, we even considered opening an office there, and for now, we are developing strategic relationships to better serve our clients.
I firmly believe Labuan Bajo is on the verge of a tipping point and is poised for rapid growth. There are several reasons for this. First and foremost, it is a stunning destination with diverse activities. While it is widely marketed as the home of the Komodo dragons, it has much more to offer.
The region boasts world-class diving and snorkeling sites, trekking in the national park, excellent fishing, pristine beaches on both the mainland and surrounding islands, and countless liveaboard options for extended island-hopping adventures.
Beyond its natural beauty, Labuan Bajo is home to a diverse and welcoming community. The local population consists of the Manggarai tribe, Bugis, Bajo, and Bima people, creating a rich cultural mix. Expats are easily integrated into this blend, and unlike Bali, there are no strong anti-expat or anti-tourist sentiments.
Connectivity and Infrastructure
Labuan Bajo is highly accessible. It is just over an hour’s flight from Bali, with 6–8 daily flights. Jakarta offers three direct flights, while Surabaya has 1–2 daily connections. International access is improving as well, with AirAsia, Jetstar, and Scoot already flying or planning to launch flights from Kuala Lumpur and Singapore. More airlines are likely to follow soon.
The infrastructure is generally well developed, with good road networks providing easy access around the harbor and extending towards areas like Tanamori and Golomori. Most developers report positive experiences with the regional government, particularly in terms of permits and business facilitation.
Hospitality and Real Estate
Labuan Bajo has already attracted several major hospitality brands, including Marriott and Ayana, with more expected to follow. Accommodations range from budget-friendly options to high-end boutique resorts and luxury villas.
- Plataran is a standout among high-end resorts.
- Selini on the Hill is a charming, affordable downtown stay with a beautiful harbor view.
- Bayview Gardens Hotel offers spacious, reasonably priced suites and villas.
- Paradise Garage remains a personal favorite, featuring two exclusive villas with 5 and 7 bedrooms, excellent service, and stunning views. It is located just two minutes from the airport and is associated with The Dockers Arms, which provides excellent F&B options.
- Le Bajo Restaurant, set on the water, is a great spot for lunch or a sunset dinner.
The demand for upscale accommodations remains strong, with high occupancy rates reflecting the area’s growing appeal. Real estate opportunities are plentiful, with land prices still relatively affordable, ensuring strong capital gains and high ROI potential.
Investment Potential
Labuan Bajo presents significant opportunities for investors, from private villas to boutique resorts and commercial developments. Several key developers are shaping the area’s future, including:
- Kokotuku Sanctuary, led by Frank Thoma, who also owns several other promising sites.
- Mawatu, a Jakarta-based developer constructing a new city with commercial, hospitality, and residential areas.
- Pointy Rock, soon to be launched by Mark O. Zownir.
- NODA Flores, set to introduce new projects soon.
- Nigel Ames, owner of Paradise Garage and a substantial portfolio of island properties.
For more insights, I recommend following Ross Woods, who has written extensively on Labuan Bajo’s real estate and yachting potential, even comparing it to Portofino.
Final Thoughts
To me, Labuan Bajo is an exciting market with tremendous potential. Whether you are considering real estate investments, launching a hospitality project, or simply exploring opportunities, this is the time to act. If you are interested in learning more, we are happy to connect and introduce you to the right people.
Stay tuned for more updates on Labuan Bajo’s growth and investment landscape.