International Tourist Spending in Bali Drops as Visitors Opt for Illegal Villas and Budget Stays

Denpasar – As Bali sees record numbers of international visitors, concerns rise over their declining economic impact and choice of accommodations, with many opting for illegal villas and budget stays, according to Professor Ida Bagus Raka Suardana from the National Education University (Undiknas) Denpasar.

“Although the number of visitors to Bali is high, many international tourists are opting for accommodation in less prestigious places, often choosing illegal villas over well-regarded locations,” Raka Suardana said in Denpasar on Friday.

He noted that not only do these tourists bring less spending money than before, but some are even competing for jobs in Bali. “Many tourists coming to Bali are still in need of money and are not bringing sufficient funds,” added Raka, who also serves as the Dean of the Faculty of Economics and Business (FEB) at Undiknas Denpasar.

Previously, international visitors preferred shopping at art shops and staying in popular areas like Kuta, Legian, and Nusa Dua. However, a new trend has emerged where tourists are staying in cheap hotels or illegal villas. “There’s no benefit to having tourists come here just to eat cheap local food and stay in low-cost accommodations,” Raka Suardana commented.
He suggested that a screening process similar to those required for travel abroad, such as proof of sufficient funds, should be implemented. This would help ensure that only tourists who meet certain financial criteria are allowed to visit Bali, rather than having unrestricted visa-free access.

Raka Suardana also pointed out that the tourism sector in Bali is still recovering from the impact of the Covid-19 pandemic, particularly affecting micro, small, and medium enterprises (MSMEs) in the sector. “While macroeconomic growth in Bali has improved, certain sectors are still struggling and have not yet recovered,” he said.

According to data from the Bali Central Statistics Agency (BPS), the cumulative number of international tourist visits to Bali from January to June 2024 reached 2,911,135, surpassing the 2,855,782 visits recorded in the same period of 2019. In June 2024 alone, Bali saw 518,819 international visitors, with the top five nationalities being Australians (131,391), Indians (60,040), Chinese (34,312), Americans (25,150), and Singaporeans (25,133).

The average length of stay for both foreign and domestic guests in star-rated hotels in Bali in June 2024 was recorded at 2.75 days.

Source: jakartaglobe.id