Bali Economy Tourism
Bank Indonesia frets about inequitable economic growth between Bali’s North and South and lack of provincial master plan.
The State News Agency Antara reports that Bank Indonesia is reminding that future tourism development in Bali must be spread across all areas of the island to avoid over-concentration of economic development the south.
Bank Indonesia division chief for advice and economic development said: “Tourism development in Bali is still concentrated in the southern part of the island. This has resulted in heavy traffic congestion, trash accumulation and oversupply of rooms and other carrying capacity limitations.”
In addition to problems of geographical inequity in tourism development in Bali, the Indonesian Central Bank also raised concerns over the lack of a holistic and integrated approach to tourism development for the island.
There is a lack of meaningful synergetic coordination between the tourism industry and the government. Another challenge, according to Bank Indonesia, is the declining lack in quality of foreign visitors to Bali as measured in terms of average spend per day and the average length of stay. The Bank also lamented the diversion of land from traditional usage to tourism and other purposes.
In illustrating the declining quality of tourism visitors, they pointed the current length of stay of only 2,93 days (2016) as compared to 3.08 days in 2015. Also of concern is the declining level of spending by foreign tourists to current levels of US$ 143,45 per day (2016) while in 2015 the level of spending stood at 143,92 US$
Total foreign tourist arrivals to Bali in 2016 hit 4,9 Million in 2016, up from 4 Million in 2015. Tourism arrivals for Q1 in 2013 have increased year on year 22% to 1,3 Million tourists.
Bank Indonesia projects an economic growth rate of between 6.1 – 6.5% for the island of Bali in 2017 pushed primarily by domestic consumption, exports, services and investment. The main business sectors in Bali remain accommodation, food and beverage, agriculture and transportation.