Skip to Content

Bali’s Canggu Could Have Too Many Hotels By 2025

Share The Article

Without a doubt, the most popular area to travel to in Bali right now is Canggu.

The once sleepy traditional village slowly became popular with surfers and backpackers before mushrooming into a full-blown tourism resort in the last few years. 

Berawa Beach in Bali Canggu

It is no exaggeration to say that a new tourist-forced business is opening up in Canggu every day, at the very least every week. From coffee shops to boutique stores, from fine dining restaurants to hotels, bunnies are booming, really booming, in Canggu. 

Business is booming so hard and fast, however, that Canggu risks going bust in the next couple of years if things continue to grow exponentially.

With so many new hotels, resorts, villas, and guest houses opening up every month in Canggu and yet more under construction, as we write, there is a real risk of oversupply and tourism making the resort go kaput. 

@heidyns one ofe my favorite hotel in canggu!🤍✨ #explorebali #hotelbali #hotelcanggu #bali #hotelbalimurah #canggu ♬ original sound – Daniel Aguilar

The Founder and CEO of hotel group OXO, Johannes Weissenbaeck, says that the addition of new hotel rooms could trigger excess supply or oversupply in Canggu.

Speaking to business reporters, Weissenbaeck said, “In Canggu three years ago, there were 3,800 rooms available; now, there are around 5,200 rooms. Next year, it will be almost 6,000, meaning it will double. In 3-4 years, that will definitely be an issue.”

@emilierosecouture Cute hotel in Canggu 🫶🏼 #cangguhypesuites #cangguhotel #canggubali #balihotel #balihotelguide ♬ original sound – Stan 🙂

He added, “For me, oversupply is not a problem. Our current occupancy is 68%, which is quite good; Bali’s standard is 61%.”

Nevertheless, he feels that many accommodation providers in Canggu must start to strategize long-term to keep bringing tourists to the year.

The tourism boom in Canggu has partly been boosted by the wake of the pandemic, with many people seeking to live the digital nomad lifestyle and other international events. 

@marfarlane Canggu is a resort village on the south coast of the Indonesian island of Bali. It's surrounded by terraced rice paddies and known for beaches like Canggu and Echo. Staying At Maja Canggu was give Greece vibes and was such a gorgeous boutique hotel worth staying at. ✨ Cost $536 per night and you get your own private suite with an unbelievable beautiful pool view. . . . . #travellife #womenwhotravel #travelbali #balitravelguide #canggubali #majacanggu #canggubeach #wheretostayinbali #balihotel #balihotelguide #fyptravelandexplore #blackgirlluxurytravel #blackgirltraveltiktok ♬ original sound – Rae☆

The Hotelier explained, “Many people work remotely; they can work from anywhere, especially since the cost of living is cheaper compared to other cities in the world. So many feeder markets, such as Singapore, are coming to Bali. Plus, the conflict in Russia-Ukraine is making them move to Bali.”

He continued, “In Bali, it’s very funny that during the pandemic, many people from Jakarta went to Bali to buy property, but Balinese people didn’t reduce prices. The market in Bali was very strong; when it went down, it didn’t collapse. In Europe and the U.S., it could collapse.”

Woman Relaxes in Tropical hotel Swimming Pool.jpg

The oversupply of hotel rooms may bring benefits to tourists in the short term, but in the long run, it is bad for Bali and for tourists.

Right now, tourists will be able to enjoy an abundance of choices when it comes to the kind of resorts and hotels they want to stay in.

As demand rises, prices for room rates will peak, especially as developers need to make their money back. But as these resorts invariably struggle to get people into rooms, the prices may start to drop to help bring more tourists into the area.

Tourists wanting a less crowded, more luxurious experience will start to look elsewhere, and the development follows suit.


Weissenbaeck’s thoughts on an oversupply of hotel rooms in Canggu is a concern echoed by the ex-deputy Governor of Bali, Cok Ace, who is still the Chairman of the Bali Restaurant and Hotel Association.

He said earlier this month that he wants to see serious spatial planning and a survey conducted to find out exactly how much demand there is for rooms in Canggu and other popular resorts before more hotel and resort development permits are issued. 


The concern for many leaders in Bali is that many of the newly built resorts and hotels do not adhere to traditional Balinese cultural and architectural principles that inherently support sustainable tourism. 

Top sustainable and Balinese-inspired hotels in Canggu include the 5-star Hotel Tugu, Belajar Bali Boutique Hotel & Retreat, and Serenity Eco Guesthouse & Yoga. 

Remove All Ads & Unlock All Articles… Sign up for The Bali Sun Premium

Plan Your Bali Holiday:
Book The Best English Speaking Drivers For Airport Transfers & Tours
Choose From Thousands of Bali Hotels, Resorts, and Hostels with Free Cancellation On Most Properties
Book Cheap Flights To Bali
Don’t Forget Travel Insurance That Covers Medical Expenses In Bali

For the latest Bali News & Debate Join our Facebook Community


Enter your email address to subscribe to The Bali Sun’s latest breaking news, straight to your inbox.


Sunday 10th of March 2024

There should be concern as to why there is a continous decline in tourism in Bali since Oct 23. JAN-FEB-MARCH( forecast) 2024 shows decling international and domestic travellers.Bali is not near 2019 levels and Bali will not have 7 million tourist in 2024. 481.000 tourist in dec 2023 to 420.000 tourist in jan 24. The excitment and investment levels in Bali was driven by optimistic provisions from local and central government.

Is the low level of tourism today have to do with what was said to the press and on social media since sept 23.

Just to remind that TAT the bureau of stats in Thailand shows and increasing inflow of tourism in Thailand and Phuket year over year.

What is causing this decrease? 1. Waste burning in dumps on social media for months. 2. Waste on kuta beach many reels. 3. Traffic congestion for xmas all over the press worldwide and social media. 4. Increase in prices of nearly everything..1 bottle water 140.000iDR 5. Tourist tax 6. Many reels on bad behaving tourism. 7. Many influencers with negative views of Bali..... 8. What else. But the trend must change quickly.

J West

Monday 4th of March 2024

Both Russia and Ukraine have made public their desire to begin working towards bringing the young runaways ( you might call the draft dodgers) back home to bolster the dwindling ranks of active soldiers.

Both armies announced a shortage of soldiers. Ukraine recently lowered the age of mandatory conscription. It only takes the home country to cancel the passports of it's citizens to trigger Indonesia, Thailand etc to cancel all visas and deport those stateless person's. EU spokesman referred to the decision to remove Ukrainians and Russians from the Eurozone Zone

Businesses now reliant on Russian/Ukrainian business might want to consider the day all those person's are deported within a very short period.


Wednesday 6th of March 2024

@J West,

That sure would be nice,they ruined my retirement there. Subhumans.


Monday 4th of March 2024

Land prices absolutely did drop during COVID.

Many of the Balinese are asset rich (land) but cash poor and sold off chunks of land for very low prices. Leases were incredibly low as well.


Tuesday 5th of March 2024

@Harrison, Those who paid for "incredibly low" land leases need to watch out.

Wayan Bo

Saturday 2nd of March 2024

Retirements homes are great chance for Indonesian tourism industry.


Sunday 10th of March 2024

@Wayan Bo, only one main issue. After 75 years old it is rare to find an health insurance. At 80 there is none. In Bali and SEA.


Tuesday 5th of March 2024

@Wayan Bo, retirement in indonesia is up to 75 years old. You can not get medical insurance in Indonesia above 80 and the price at 70 years old in nearly 5.000.000 per month. So why buy a retirement house if you are not covered medically. So many foreigners living in Bali are without health insurance.


Monday 4th of March 2024

@Wayan Bo, Not logical at all considering quality of healthcare on offer and the fact that international medical insurance is extremely expensive or impossible at old age. Rely on local medical insurance or gov. insurance? No thanks.


Saturday 2nd of March 2024

Lived there from 2002-2012.Moved North to Singaraja...never go back there now ..last time about 2 years ago it was almost unrecognisable.