Business activity in Bali strengthened further in the Q3 2026, driven by rising international tourist arrivals and higher hotel occupancy rates.
The improvement boosted the accommodation and food service sector while generating positive spillover effects across industries linked to tourism.
According to Achris Sarwani, Head of Bank Indonesia Bali Representative Office, the latest Business Activity Survey showed stronger business expansion across the island.
This was reflected in Bali’s Weighted Net Balance (WNB), an indicator that measures whether more businesses are reporting improving or weakening business activity, which rose to 63.06% in the third quarter of 2026 from 49.32% in the previous quarter.
“The improvement was mainly supported by stronger performance in the tourism and services sectors, which have extensive linkages with the regional economy,” Achris said.
One of the clearest signs of the recovery was seen in the accommodation and food service sector. The sector’s WNB increased to 19.12% in the third quarter of 2026, up from 14.62% in the previous quarter.
Hospitality Business Perform Stronger
The improvement coincided with stronger international visitor arrivals.
According to data from Bali Office’s Statistics Indonesia, the average number of foreign tourist arrivals during July and August 2026 reached approximately 691,900 visitors per month. That number representing a 19.5% increase from the monthly average of 578,900 recorded in the second quarter of 2026.
The hospitality industry also posted stronger performance. The average occupancy rate of star-rated hotels reached 67.74% during July-August 2026, up from an average of 61.32% in the previous quarter.
The increase in tourism activity also benefited supporting sectors. The WNB for transportation and warehousing improved from negative 1.39% in the second quarter to 0.00% in the third quarter of 2026, while the WNB for other services rose from 0.00% to 1.57%.
Meanwhile, business activity in the information and communication sector continued to strengthen. The sector’s WNB increased from 3.14% to 6.27%, in line with growing demand for communication and digital services from both households and businesses.
The government administration, defense, and compulsory social security sector also recorded an improvement, with its WNB rising from 3.33% to 5.55%.
The increase came as Bali’s regional government spending grew by 9.45% year-on-year (yoy) through August 2026, while operational expenditure increased by 9.75% yoy.
The education services sector likewise recorded stronger activity, with its WNB increasing from 2.39% to 4.78%, supported by the start of the new academic year in July 2026.
In addition to these sectors, most other industries also reported stronger business activity, including agriculture, forestry and fisheries, manufacturing, and financial services.
The latest survey indicates that Bali’s economic expansion is becoming more broad-based. Although tourism remains one of the island’s main growth drivers, its positive impact is increasingly spreading across a wider range of sectors throughout the regional economy.
Sources: BisnisBali
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