Bali Profil Tourism

Tourism Destination and Area

2007-08-07T21:28:00.000-07:00

Bali is recognized worldwide as main tourism destination for both foreign and domestic tourist. Ironically, the name of Bali sometimes more noticeable than Indonesia. This is created as most of foreign tourist who come to Bali goes directly without stepping their feet to other places.

Tourism development in Bali started from 1975-1979. Nevertheless, rapid growth have begun in 1985-1990as the increasing of investment on tourism destination and accommodation in Bali, particularly since the government of Indonesia established Bali Tourism Development Corporation program in 90-ies.

Bali has very attractive tourism objects, which are natural beauty scenery (beach and mountain) and culture. Combination of both natural geographic and unique culture supported by the native hospitality makes Bali very attractive as tourism destination.

Natural tourism object in Bali is dominated by beach tourism. Most of the beach has white sand. White sandy beach is the most attractive object for tourist, such as Nusa Dua, Kuta and Benoa. Besides enjoying white sandy beach, some beach can be used for water sport such as diving and surfing or only to see sun rise and sun set. Another natural tourism object is mountain in Batur and Bedugul, whilst cultural tourism object such as praying house for Hindu called Pura, Istana Tampak Siring and handy-craft village.
There are now many tourism objects in Bali, but with various growths in different places. One of the indications to note the growth on an area is the number of accommodation facilities, especially star hotels. Most of tourism area which has rapid growth is beach tourism area. Area which has rapid growth and interested by many investor are shown below:

The Role of Tourism Sector in Economics Structure of Bali

2007-07-22T18:46:00.000-07:00

The economic structure of Bali has a unique characteristic compare to any other provinces in Indonesia. Its economic pillars mainly based on an excellence performance of its comparative advantage-tourism industrial sector. During 1994-2002 Bali tourism sector contributed up to 31% of total regional GDP. While in year 2003 was about 30,2%. The rapid growth of tourism industry in the Province of Bali gives a significant multiplier effect to the growth of tertiary sectors. As the consequences, tertiary groups (e.g. trading, hotel and restaurant, transportation and communication, financial, rental and various services) contribute dominant share to the regional GDP of Bali province. In facts, in the period of 2001-2002 tertiary sector experienced a contraction growth i.e. 3,29% in year 2001 become 2,47% in year 2002.
The primary and secondary sectors also experienced an improvement of growth. Secondary sectors in year 2000 grew 3,33 %, while in year 2001 grew 4,81% and even in year 2002 it reached 6,49% of growth. While the primary sector during period 2000 - 2002 also continuing to experience the improvement on its sector growth. Significant share of economic sectors which has strong relation with tourism industry it plays a very important role in Bali economic. Economic growth in Bali province very depends on tourism industry. Therefore, local government of Bali put a big effort on tourism industry.

2007-07-18T01:10:00.000-07:00

Growth of tourism industry in Bali can not be separated from the accommodation effort of both star and not star hotels. Tragedy of WTC, Kuta Bomb and also the epidemic of SARS has brought the negative impact on the occupancy rate of hotel in Bali. Before the Kuta bomb happened, the occupancy rate hotel in Bali was about 39% - 40%, even the occupancy rate of star hotels reached 50%. After Kuta bom the occupancy rate only around 30%. Cumulatively, the occupancy rate hotel in Bali in the year 2002 approached 34,6%, (star hotels 50,6% and non star 18,2%).
Based on the type of tourist visits numbers, the foreign tourists is always more dominant compared to the domestic tourist. In 2003, the numbers of foreign tourists stay at star hotels is counted of 894.208 people, while domestic tourists only 380.333 people. In 2003 the number of tourist visited to Bali decreased, which was 1.274.541. The performance of type of tourist visit Bali can be seen from table hereunder.

Room Rate
In general, both 4 and 5 star hotels offer various room rate to their guest. Room rate denoted in US$ currency is given to foreign tourist and Indonesian rupiah to domestic tourists. Based on statistical data of 1999 to 2001, average room rate of 4 star hotels tends to decrease each year. Same condition occurred in 5 star hotels where in average room rate dropped by the end of 2001.
Based on analysis result, one of the main factors that cause on the fluctuation of room rates is Rupiah currency exchange rate to US Dollar. Economic crisis have made the rupiah rate of exchange to Dollar unstable, so that force the hotels revise its tariff.

Comparison of Performance of 4 and 5 Star Hotels According to Tourism

Location Supply of 4 and 5 star hotels mostly located in 2 regions which are Badung Regency and Kotamadya Denpasar. Both of these regions are the primary tourism location in Bali, which promote beach tourism. This indicates that the distribution of 4 and 5 star hotels in Bali are mostly in beach area.
In Badung regency, distribution of 4 and 5 star hotels concentrates in Nusa Dua – Tanjung Benoa, Kuta and Jimbaran whilst in Kotamadya Denpasar supply of 4 and 5 star hotels are concentrated in Sanur. In this study, the hotel locates in area of Nusa Dua – Tj. Benoa composes the hotel residing in the Bali area Tourism Development Center Nusa Dua and its surroundings, Tanjung Benoa, and Nusa Dua Selatan. The hotel locates in area of Kuta consist of the hotel residing in around coastal area Kuta and Legian. Whereas the hotel included in area of Sanur and Jimbaran are the hotels residing in around coastal of Sanur and Jimbaran areas. Distribution of 4 and 5 star hotels in prime tourism area is shown on the following chart.
From the above picture can be seen that from four tourism area supply of 4 and 5 star hotel’s room is concentrated on two areas, that is area Nusa Dua – Tj. Benoa and Kuta-Legian areas. Total the 4 and 5 star hotel’s rooms that reside in the area Nusa Dua - Foreland Benoa, are 4.546 rooms.
Based on the distribution of 4 and 5 star hotels within Nusa Dua – Tanjung Benoa and Kuta area, Nusa Dua – Tanjung Benoa is dominated by 5 star hotels while Kuta dominated by 4 star hotels. This condition clearly indicates that both areas have a different market segment. High class tourist generally more concern on convenience and tranquility atmosphere. This condition is provided in Nusa Dua – Tanjung Benoa area, whereas every hotel has private beach.
In order to acknowledge 4 and 5 star hotel performance in those 4 primary tourism locations, we shall analyze occupancy rate and market share penetration index of each area. Market share penetration index is achieved by comparing actual market share with natural market share.

Tourist to Bali | Tourist Arrival to Bali

2007-05-30T00:38:00.000-07:00

The growth of foreign tourists to Bali in the last five years since 1999 up to 2003 has been slightly fluctuating. This is caused by the political instability in Indonesia an health issues in the world as well as a number of casualties that come from other countries. This unfortunate condition has affected the intention of visitors travel to famous destinations in the world, including the travel to Bali. The Government of Bali and private sectors have carried out several efforts in order to recover Bali’s tourism, those efforts among other are distributing information about Bali’s up to date condition, especially the security and safety through printed and electronic media, inviting foreign travel writers or travel agents and tour operators to Bali in order to see the life in this island by their own eyes and participating in international tourism events in some foreign countries of which some are the Bali’s lucrative markets. These actions have been quite fruitful. This can be seen from the number of tourists arrival to Bali which has been recently increasing 4 % in 2000 at the amount of 1,355,799 people in 1999 and became 1,412,839 tourists in 2000.

The WTC tragedy on Sept/11/2001 has decreased the number of tourists arrival to Bali as much as 3.97%, i.e. 1.412.839 in 2000 and became 1.356.774 in 2001. Besides, the Kuta tragedy, on 12 October 2002 has also influence the tourists arrival to Bali as much as 5.23%. i.e. 1.356.774 in 2001, and became 1.285.844 in 2002. This tragedy had given great impact to Bali’s tourism in particular. This fact can be observed from the drop of tourists arrival to Bali every month in 2003. the most drastic drop occurred in April 2002, i.e. 48.81% with 104,960 people, this figure became 53,726 in April 2003, and in May it was 59.88%,i.e 119,284 people in May 2003 and dropped down to 47,858 visitors in May 2003. This fall was caused by SARS outbreak in the world starting from March until May 2003 which resulted in the fear of people traveling in the world, including the travel to Bali since most foreign aircrafts had made a transit in Singapore before it flew to the other destination. Apart from the bomb blast in Kuta, Bali and SARS epidemic, the drop was also caused by the Iraq war which took place March 2003, and the issue of the 19 Taiwanese tourists who were reported suffering from Gaestero Enteritis and Amoe Biasis in November 2003 in Bali.

This drop has been continuing up to September 2003. In October 2003, there was an increase as much as 20,14% if it was compared to the same month last year, i.e. 81.100 tourists in November 2002, and this number increased to 97,475 tourists in November 2003. In November 2003, there was a significant increase as much as 166.23%, i.e. 31,497 tourists in November 2002, and it increased again up to 83,853 tourists in 2003. In addition, in December 2003, it increased again as much as 48.59%. This increase has proven that the security and safety in Bali are much better than before and the tourism sector has been slowly back to normal as before. Most Balinese community hope that the tourists arrival to Bali will be increasing again in 2004. We are not yet satisfied with this increase in period since there happened a drastic drop in the same period in 2002 because of the bomb blast in Bali, on 12 October 2004.

As a whole, there was a slight drop for tourists arrival to Bali as much as 22.77%, the direct foreign tourists arrival drastically dropped in 2003. This is caused by the drop foreign tourists arrival as much as 73.33% from 15 Bali’s most lucrative market as follow.
Japan dropped at amount of 38.37%
Australia decreased up to 24.27%
Germany went down at 36.48%
United Kingdom went off 48,31%
America dropped to 28,14%
Dutch fell down at 17,84%
French decreased up to 32.08%
New Zealand went down 30.13%
Italy fell down at 62,71%
Canada dropped up to 31,43%
Thailand declined 20,86%

In addition, several countries from 15 biggest tourist market of Bali underwent an increase about 26,67% in term of foreign tourists arrival to Bali. Those countries were Canada increased 31,43%, Thailand went up 20,86%, Taiwan with an increase of 1,05%. South Korea increased 12,99%, Singapore went up 53,77% and Malaysia increased 74,45%. several countries from 15 biggest tourist market of Bali underwent an increase about 26,67% in term of foreign tourists arrival to Bali.