Rapid Land Price Increase

Bali has been the chosen holiday destination in South-East Asia for tourists from all over the world and the last 25 years have seen unsurpassed growth in returns and income for those who invested early. With the Bali boom in tourism industry and business, early investors bought land, villas and resort complexes and were rewarded with consistently high income yields plus equally as impressive capital appreciation.

However there is growing sentiment that Bali cannot sustain such a high level of growth, and especially in light of community and environmental concerns. Any investment has peaks, troughs and plateaus but when you consider competition from other South-East Asian countries plus the environmental constraints, investors are now looking to a new source, a new jewel in the crown – Flores.
Phuket in Thailand, Boracay in The Phillipines, and the Maldives, have experienced growth over the years however they are now considered expensive investment options plus they are over-crowded and perhaps not offering the ‘value for money’ proposition they used to be known for. While these areas along with Bali will continue to grow, the dramatic growth trends are slowing and the tourist market is changing with new demographics emerging who are after different holiday and adventure experiences.
The new middle and upper class tourist market in Indonesia and the explosive growth of visitors from China, India and Japan is changing how we view tourism and certainly having huge impact on business structure and development. By 2020 China will be the leading source of tourism income in the world with over 150 million tourists looking for the ‘next big thing’.

Foreign and government investment in Flores is high, with Labuan Bajo being a focus as one of the priority Beyond Bali campaign destinations. It is no longer a question of whether Flores will become a major tourism destination; it’s now a question of how quickly this will happen.

Land development and infrastructure planning has already started, with land prices already reflecting growth that indicates a land price boom for the future. Land prices in Flores will continue to rise with areas close to Labuan Bajo and Komodo National Park set to see high and rapid growth over the next few years and further into the future.

Early investors are already seeing a growth rate in their capital and land, with many looking for more opportunities to take advantage of the benefits of investing early. With community, local business, infrastructure and government support, there has never been such a good time to experience Flores and its islands and invest in an area that will experience rapid and sustainable tourist growth. With Flores being called the new jewel in the South-East Asian crown, now is THE time to invest.