Bali’s Sanur Health SEZ is officially operational, anchored by the Bali International Hospital (BIH), which opened in April 2025 and was inaugurated with the SEZ in June 2025. The Kura Kura Bali SEZ (Serangan Island) spans ~498 ha with a targeted Rp 104.4 trillion (~US $6.9 bn) in investments and tens of thousands of jobs. Wellness/medical travelers spend far more and stay longer than regular tourists—mechanics that typically lift ADR and stabilize occupancy for licensed, professionally managed villas in prime submarkets. We treat SEZ effects as upside, not base case, and underwrite conservatively.

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1) What’s live right now (not “future plans”)

• Sanur Health SEZ: Indonesia established the zone via Government Regulation No. 41/2022 designating Sanur as a health & tourism SEZ. BIH opened April 2025 inside the zone; the SEZ and hospital were formally inaugurated in June 2025.
  
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• Bali International Hospital (BIH): positioned for international-standard care and medical tourism; Indonesia’s sovereign wealth and state healthcare entities highlight BIH’s global partnerships to build referral quality.
  
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Why this matters: access to credible, convenient care reduces booking friction for recovery stays and wellness programs, encouraging extensions and return visits—both friendly to ADR and calendar health.

2) The spend & stay premium of wellness travelers (with proof)

Independent industry research shows wellness travelers outspend typical tourists by a wide margin. According to the Global Wellness Institute, international wellness tourists spend ~35–41% more per trip, while domestic wellness travelers spend ~163–175% more—a persistent premium over the last decade. Longer, purpose-led itineraries (treatments, rehab, retreats) explain much of the delta.

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Investor lens: when the demand mix skews wellness/medical, you usually see higher willingness-to-pay (ADR), longer length-of-stay (LOS), and fewer cancellations—key ingredients for steady RevPAR and healthier net yield.

3) Repatriating Indonesian health spend + pulling regional demand

Indonesia’s government is explicit about reducing the medical-tourism outflow (Indonesians traveling to Singapore/Malaysia/Thailand). Multiple reports cite IDR ~150 trillion (~US $9.2 bn) spent abroad annually—capital the Sanur SEZ aims to repatriate while also attracting inbound patients.

Arab News

What that means for Bali: even a modest share of repatriated and inbound cases translates into year-round, high-spend traffic—not just peak-season leisure.

4) Kura Kura Bali SEZ: the complementary demand engine

Alongside Sanur, the Kura Kura Bali SEZ (Serangan Island) provides a mixed-use anchor for marina/waterfront tourism, creative-tech/education, culture, and wellness—broadening demand beyond beach leisure. Legally established via Government Regulation No. 23/2023, Kura Kura targets Rp 104.4 tn (~US $6.9 bn) in investment, ~35k direct and ~64k indirect jobs, and meaningful FX earnings at maturity.

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Investor lens: marina + creative/education demand creates mid-week base and event-driven spikes, supporting premium calendars in nearby micro-locations.

5) How the flywheel translates to returns (simple mechanics)

1. Purpose (treatment/rehab/retreat/event) → Longer LOS + higher WTP
   
   

2. Access to care → lower cancellation risk + more direct bookings
   
   

3. Mixed-use anchors → smoother seasonality + mid-week occupancy
   
   

Result: improved ADR and calendar stability → stronger RevPAR → (after fees/OpEx/reserves) healthier net yield. We validate base inputs with operator comps and use hotel KPIs only as market context.

6) Underwriting (what we do, asset by asset)

• Base case first: set ADR/Occ conservatively by micro-location and operator comps; run ±10% sensitivity on both.
  
  

• Fee stack disclosed: management %, OTA blend, utilities, housekeeping/linens, maintenance, insurance, local levies, FF&E/Capex reserves (3–5%).
  
  

• SEZ halo = optionality: we add a measured LOS/ADR uplift scenario only after base case passes stress.
  
  

• Proximity premium: assets with easy drive times to Sanur/Serangan may earn a modest uplift; far-flung assets do not.

7) Governance & credibility (not marketing claims)

• Legal footing: Sanur and Kura Kura are established by national Government Regulations (PP 41/2022 and PP 23/2023). These are the highest-level decrees for SEZ designation.
  
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• Official targets & jobs: The National SEZ Council (kek.go.id) sets the Rp 104.4 tn target and job counts for Kura Kura—transparent and trackable.
  
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• Operational proof: BIH is open; the SEZ + hospital were inaugurated by the President—i.e., not conceptual.
  
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8) Risks—stated upfront (and mitigations)

• Phasing risk: large zones roll out in stages → underwrite what’s live; haircut unrealized phases.
  
  

• Policy & compliance: Bali is steering toward quality tourism; ensure licensed operations to protect ADR and insurance.
  
  

• Cultural/environmental constraints: especially on Serangan—work with operators aligned to local rules to protect reputation, licenses, and pricing.
  
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Investor takeaways

1. Sanur is online and BIH is treating patients—a real foundation for year-round, higher-spend visitation.
   
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2. Kura Kura adds diversified demand (marina, creative/education, wellness) at legal scale (498 ha) with official investment targets—broadening the flywheel beyond leisure.
   
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3. Wellness/medical travelers spend 35–175% more than average tourists and often stay longer—the economics investors want.
   
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4. Treat SEZ halo as upside. Buy licensed, professionally operated assets in prime micro-locations; model conservatively with full fee disclosure and ±10% ADR/Occ stress.

FAQ

Is BIH really open—and inside the SEZ?
Yes. BIH states it opened in April 2025 and sits inside Sanur Health SEZ; the President inaugurated both in June 2025.

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What’s the legal basis for the zones?
Sanur = PP 41/2022; Kura Kura = PP 23/2023. Both are national Government Regulations specifying purpose, area and governance.

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Where do the Kura Kura investment/job/FX figures come from?
From Indonesia’s National SEZ Council (press release) and official summaries.

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Do wellness travelers really spend more?
Yes—Global Wellness Institute quantifies a persistent premium: ~35–41% more for international; ~163–175% more for domestic.

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Sources & further reading (official / reputable)

• Bali International Hospital (BIH) — “The hospital opened in April 2025 in the Sanur Health SEZ.”
  
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• Cabinet/official coverage of inauguration — President’s visit and inauguration of BIH + Sanur SEZ, June 2025.
  
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• Government Regulations: PP 41/2022 Sanur SEZ; PP 23/2023 Kura Kura SEZ (area 41.26 ha and 498 ha, respectively).
  
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• National SEZ Council (kek.go.id) — Kura Kura investment Rp 104.4 tn, 35,036 direct + 64,817 indirect jobs, FX targets.
  
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• Global Wellness Institute — spend premium of wellness tourists; wellness economy snapshots.
  
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• TTG Asia (trade) — Sanur healthcare zone debuts; BIH capacity details.
  
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• Arab News (wire) — Outbound Indonesian medical spend (~IDR 150 tn / US$9.2 bn) context.
  
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Methodology & disclaimer

We rely on official regulations, SEZ Council communications, hospital/operator statements, and reputable industry research. SEZ effects are modeled as optionality; island averages ≠ project outcomes. We underwrite asset-by-asset with conservative ADR/Occ inputs and ±10% sensitivities, and disclose full fee stacks in our memos.