New Tourism Development and Investment for Indonesia’s Lombok Island

Indonesia, Lombok, infrastructure, integrated resort

Awang Bay will be the area for Mandalika Integrated Resort

Lombok is being increasingly turned into a second Bali or just an alternative to its western neighbours with many new projects kicking off, including the future hosting of a world-class racing event of motorcycles as well as a giant integrated resort area named Mandalika…

Lombok Island, located east of Bali in the West Nusa Tenggara region, has received attention from real estate investors lately following President Joko Widodo declaration of the 10 “New Bali’s” tourism plan in 2017. The island is ideally located, an hour and a half by fast boat from Bali and a 2.5-hour flight from Jakarta or Singapore.

The Tourism Ministry of Indonesia has pledged over USD65 million to growing the Kuta Beach region’s Meetings, Incentives, Conventions and Exhibitions market. Other development plans include a USD3 billion large-scale commercial and hospitality Mandalika Resort Project and the hosting of the MotoGP in 2021, Indonesia’s first world-class racing event in more than two decades.

Currently under construction, the Mandalika Resort Project is a gigantic development located in the southern part of the island. The Mandalika will request investments of US $3 billion to become a luxury eco-tourism destination. It will be developed on 1,175 ha of land and it is the key project driving interest towards this region. Mandalika will house brands such as Pullman, Paramount Resort, Club Med and Grand Mercure Hotel. There will also be 350,000 square metres of commercial space, a yacht marina, a water park, and a theme park. Lombok tourism authorities are confident that the first infrastructure and hotels are expected to be completed by 2022.

Construction of the MotoGP circuit track is expected to commence in October 2019 and upon completion, the racing event is expected to draw more than 150,000 spectators.

In order to accommodate the demand, the state airport operator PT Angkasa Pura I has allocated more than USD14 million for upgrades and expansions at Lombok International Airport. The airport welcomed last year 4.14 million passengers, up by 12.5% over 2017, an excellent result despite the devastating earthquake of July 2018.