We are getting repeated questions from many investors – What made us decide to build Innit’s first resort in Lombok? The answer is pretty simple – high returns. The primary factors for choosing the right property and resort investments are nightly room rates and occupancy levels. Professionally managed hotels in Lombok charge premium rates of USD 250 to USD 600 per night and yet command 80% occupancy level with ever growing tourist arrivals and demand exceeding supply. Novotel Kuta Lombok reported overbooking each high season. This is something impossible to achieve in saturated markets like Bali and other well-known destinations in the region. Why? We can walk you through a few of the fundamental reasons behind it.
1. Infrastructure is in place.
Lombok International Airport at Praya is newly opened and is regularly adding more Domestic and International flights. AirAsia setting up their regional hub in Lombok results in even more connectivity. Direct flights from Perth, Singapore, Kuala Lumpur, Jakarta, Bali, Surabaya, Jogjakarta and many more are already in place. Infrastructure such as roads, electricity and water supplies have all been drastically improved due to the government’s high investments.
2. Lack of well managed resorts
There is no doubt about the growing number of visitors to Lombok as a result of marketing initiatives from hospitality industries to travel agencies. The government’s initiative to start the New 10 Bali program that promotes 10 new key travel destinations in Indonesia – Lombok being one of them, has also created a big impact on tourism. All these result in undersupply of quality accommodation, especially in the South part of Lombok Island.
3. Low entry costs
The price for Lombok property are rising as the time goes by, but they are still far below other regional destinations today. This fact won’t last for long, hence we are looking at the conservative scenario for property appreciation of 13-16% for the next few years. Yet the room rates are the same or higher than in saturated markets such as Bali.
Another aspect which needs to be considered when investing in a fully managed resort is staff payroll – a big chunk of operational expenses. Well trained and managed staff appreciate the job opportunity for lesser pay-out compared to more competitive markets where staff frequently have no problems switching jobs for small increase of the salary. It is difficult to build staff loyalty if there are plenty of job opportunities. This results in more hiring and training, resulting in high employment turn over and higher operational cost of the resort. You won’t be facing these issues in Lombok.
4. Marketing and PR Activity to promote Lombok and Indonesia as Tourist Destination
Lombok is getting a lot of attention lately as the next place to visit. From winning the award as one of the best islands in the world ( https://www.thejakartapost.com/travel/2018/07/13/java-beats-bali-lombok-as-best-island-in-the-world.html ) to organising the first moto GP in Indonesia in 2021. Government of Indonesia under President Jokowi’s personal effort to promote Lombok and Indonesia as ideal travel destinations together with extravagant amounts of money invested into infrastructure and marketing results into well-deserved attention. The future of tourism in Indonesia is bright, not just because of destinations such as Bali and Lombok, but also Sumba, Sumbawa, Labuan Bajo, Komodo Island, Manado, Java – Borobudur, Krakatoa, Lake Toba, Raja Ampat and many more.
5. The Nature and the beauty of Lombok
Let’s not forget the main reason why people travel – to discover and explore new places. Lombok is the quiet serene peaceful place we all want to discover while escaping the hustle of big corporate congested city life. The beauty of nature, the number of waterfalls, diving and surfing spots, the number of pristine white sand beaches in Lombok are endless.
When it comes to buying property and you want to invest your money in property, there is the one and only key factor which stands out the most – location. As a great Lombok property, Innit Lombok is located directly on the beach. It has beach access. It has its own beach, which is white, pristine, secluded surrounded by clear blue water. If you wish to invest in a beachfront property or Lombok property, please contact us. The Lombok villas for sale are starting at USD 345.000.