As Putin’s war rages on, Russians wait it out in Bali, Phuket

Singapore/Bali: At Parq Ubud, a hotel with co-working space, a wellness centre and restaurants in the zen-like surrounds of Bali’s cultural hub, one particular nationality dominates the clientele.

“I can say that 50 per cent of our customers are Russians,” Dwi Surya, the manager of the complex, which is set among lush gardens and is marketed as a networking and community centre. “Dozens of Russians would come to use our facilities every day.”

Parq Ubud is a go-to spot for Russians in Bali.Credit:Amilia Rosa

Parq Ubud has become an increasingly noted hangout for Russians as tens of thousands of them have flocked to the Indonesian island over the past year.

Among those taking in the peaceful ambience are Russian expatriates and tourists who have resumed travelling after the pandemic.

But Vladimir Putin’s invasion of Ukraine has also played its part.

“What we do notice was not because of the war [beginning] a year ago … it was the military drafting,” Surya said.

Dwi Surya in the lush surrounds of the complex he manages in Ubud.Credit:Amilia Rosa

“I know this personally, from our customers and what I [have] picked up from conversations here. There are a lot of people making inquiries to get away from being drafted. Dozens if not hundreds.”

The exodus from Russia since Putin invaded Ukraine has been well documented.

As many as 200,000 people reportedly departed last September, crossing into neighbouring countries including Georgia and Kazakhstan after the Russian president announced he was mobilising new troops last to support his flailing war effort.

The conscription drive led an estimated 300,000 to be called up for military service, half of whom were sent to fight in Ukraine.

Batu Bolong Beach in Canggu is another popular spot with Russian visitors to Bali.Credit:Amilia Rosa

With men between the ages of 18 and 27 eligible to be drafted to the armed forces for a year, some have sought to wait out the war far beyond Russia’s borders and the conflict zone itself in one of south-east Asia’s most idyllic locations. Others are in Bali escaping the broader impacts.

“We do have quite a lot of Russian customers here. I do hear stories [from customers] that many Russians are in Bali trying to seek safety from the war. No one wants to be in a war,” said a Russian cafe manager in Bali’s Canggu district who asked to remain anonymous to protect family members who remain in her homeland.

“I know many who can and have the means to seek to move elsewhere for safety. The war, of course, plays a big part in why they decide to move and stay away. There are even more people who can’t just up and leave. Those who don’t have anything or have a big family they just can’t leave behind. They’re trapped. Russians felt the effect of the war too. Everything is prohibited … no social media. Not everybody [in Russia] wants the war.”

Batu Bolong Beach in Canggu, Bali, a popular spot with Russian visitors.Credit:Amilia Rosa

Whatever their reasons for heading to Bali, property trends indicate that members of the sizeable Russian contingent on the island are looking to stay longer since the lifting of COVID-19 travel restrictions and the onset of the war.

There were 58,031 Russians who ventured there last year after flights resumed in March. It was a figure still short of the full-year influxes in pre-pandemic times in 2018 and 2019, when more than 100,000 made the journey annually. They are also far outweighed by the 605,955 Australians who visited Bali in 2022.

But Michael Hikma Gunawan, the Bali branch chairman of Indonesia’s property broker association, the Asosiasi Real Estate Broker Indonesia, said Russian buyers were outnumbering those from Australia and Europe combined.

“There has been an increase in the Russian market for Bali property lately,” said Gunawan, who also owns the Ray White real estate agency in Bali. “When the war first started a year ago, they were looking for short-terms rentals.Now in the last six months, I think around August last year, the market shifted to long-time rentals.

“At first, they were just here to seek safety from the war. Now they have started to look at business opportunities for starting up companies. Since foreigners can’t buy land in Indonesia, they set up foreign investment companies to own the land. They open restaurants, property agencies, photography [businesses], anything to target other Russians coming to Bali to seek security too.”

It’s a similar situation in Thailand, a closer and even more popular attraction for Russians.

Russian tourists enjoy the warm weather at Patong beach, Phuket.Credit:Getty Images

At the peak of high season there in January there were 202,759 arrivals from Russia, accounting for almost 10 per cent of the country’s 2.14 million foreign visitors in the month, Thailand’s ministry for tourism and sports reported.

Turning up on direct and chartered aircraft from Russian cities or via the Middle East, the bulk headed for the southern island of Phuket, returning to a long-favoured destination in droves after being shut out for two years by the global health crisis.

The majority were tourists eager to escape below-zero temperatures at home rather than the war, according to Andrey Snetkov, a travel agent with Tez Tour, a Thai company specialising in the Russian-speaking market in Thailand.

But he said the average length of stays had increased since the war in Ukraine and Thailand began to relax its border rules soon after.

A group of Russians watch an annual parade along Patong beach last December.Credit:Getty Images

“People wanted to spend even more time in Phuket. Of course the war plays quite a big role,” he said. “I know that many people are trying to prolong their holidays.”

As well as the sun and sand the appeal of education – there are 14 international schools on Phuket – and long-term visas are contributing to the bulging Russian community on the island.

The real estate market there, as a result, has surged.

In high-end Laguna, situated on the island’s west coast and populated by five-star resorts, 30 new projects entered the market in the past two months and most were snapped up by Russians, said Bill Barnett, the managing director of Phuket-based consulting group C9 Hotelworks.

“In the Laguna area, a three or four-bedroom villa, which typically would have rented long-term for $US2000 [$2970] is now going for $US10,000 to $US20,000 a month during high season,” he said.

“Russians traditionally are snowbirds and come from November to March, but now that timeframe is being pushed out.

“We’re not just talking about people hiding out from the war, they’re also business people, like developers who need to put money to work. The [Western financial] sanctions have been so hard they don’t want to bank their money in Russia as usual.”

Back at Parq Ubud in Bali, manager Surya is used to Russians staying for months on end. It is a pattern that existed at the hotel before the war and the pandemic.

But while they have made it a home away from home as Putin has made their country a pariah state, they are also mixing warmly with others, including the Ukrainians who frequent the place.

“We pride ourselves in the fact that our space is a peace zone. Russian and Ukrainian don’t segregate here,” Surya said.

“I know personally people from both countries when they meet, they greet each other in a friendly way, and they hug. There’s no war here. We welcome all nations.”

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