Bali’s tourism industry continues to dominate the island’s economy, which can be seen from the distribution of bank financing related to the tourism sector, according to reporting from Bali Bisnis.
Bank Indonesia noted that credit distribution to tourism-related business sectors reached IDR 93.59 trillion until July 2024 or 11.6 percent compared to the same period in 2023 (YoY), while credit distribution to the non-tourism sector was IDR 28.06 trillion, illustrating that investment in Bali is still dominated by tourism businesses such as investment in hotel accommodation, restaurants, villas and others.
Head of the Bank Indonesia Representative Office for Bali, Erwin Soeriadimadja, explained that Bali’s development is concentrated in areas related to tourism as the largest contributor, which can be seen from the share of tourism in the Balinese economy which reaches 65.96 percent, while the non-tourism sector is only 34.04 percent.
Bali Bisnis reports that the area included in tourism areas was only 1,738.29 km2, while the non-tourism area in was 3,851.85 km2. However, the average per capita income per month of people working in the tourism industry reaches IDR 5.67 million, much higher than the per capita income per month of people working in non-tourism industries, which is only IDR 3.33 million per month.
Erwin explained that there is a need for diversification of development into non-tourism sectors, especially the six leading sectors that have been echoed in the Balinese Kerthi economy, which include the agricultural sector as the main priority, marine and fisheries, branding industry, MSME and UMKM sectors, creative and digital economy.
Diversification efforts have been made through the financing sector, with credit distribution to the agricultural sector growing to 12.38 percent, the highest growth up to Q3/ 2024 along with the high distribution of People’s Business Credit (KUR) says Bali Bisnis.
“Development is concentrated in the tourism sector, so it is necessary to encourage the development of the Balinese economy with six leading sectors,” Erwin explained to the media on Wednesday (18/9/24).
Erwin explained that even though tourism remains the main source of Bali’s economy, the direction must be towards quality tourism along with the development of other sectors so that development is more balanced and not so dependent on tourism.
Source: Bali Bisnis
Stock image by Rendy Novantino on Unsplash
