Bali Tourism Shows Recovery as Hotel Tax Revenue Soars, Minister of Finance Reports

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The Minister of Finance Sri Mulyani has stated that Bali tourism has recovered after being hit hard by the Covid-19 pandemic since 2020. She provided evidence by citing the increase in hotel taxes in Bali as of February 2023.

According to data from the Ministry of Finance, hotel taxes in Bali have increased by 280.81% to Rp 379.1 billion as of February 2023. This proves that Bali’s economy, which relies heavily on tourism, is beginning to recover. Thus, Bali tourism is back to normal.

In contrast, hotel taxes in West Nusa Tenggara only increased by 9.02% to Rp 10.97 billion. The growth rate is still in single digits compared to the hotel tax in East Nusa Tenggara, which grew by 22.70% to Rp 9.22 billion.

“This means that the regions of Bali and Nusa Tenggara, which were deeply affected during Covid, show a significant improvement,” said Sri Mulyani during the APBN KiTa press conference, quoted on Wednesday (15/3/2023).

The increase in hotel taxes aligns with the statement from the Indonesian Hotel and Restaurant Association (PHRI), which stated that hotel occupancy in Bali has increased to 63% in early 2023, much better than the 50% occupancy rate in 2022. In the main tourist areas such as Nusa Dua, Kuta, and Jimbaran, hotel occupancy rates are even above 70%.

Previously, the Vice Chairman of PHRI Bali, I Gusti Ngurah Rai Suryawijaya, explained that hotel occupancy in Bali will increase further with the regular entry of Chinese tourists starting in early March 2023. Additionally, the upcoming U20 World Cup event to be held in Bali is predicted to further liven up hotels in Bali.

Furthermore, according to data from the Central Statistics Agency (BPS), Bali’s economy in the fourth quarter of 2022 grew by 3.11%, compared to the previous quarter. Compared to the same period the previous year, Bali’s economy in the fourth quarter of 2022 grew by 6.61%.

If accumulated from the first quarter of 2022 to the fourth quarter of 2022, Bali’s economy in January-December 2022 grew by 4.84%.

In 2020, Bali’s economy contracted by -9.31% compared to the previous year. The slowdown continued into 2021, although it improved to -2.47%.

On the other hand, Silvia Ratna, CEO of HalloBali, stated that despite Bali still being the most popular tourist destination in the world and attracting millions of domestic and foreign tourists with its charm, there are still challenges looming.

“The decline in global economic performance under the shadow of recession and increasing competition requires comprehensive solutions for Bali’s tourism industry to maintain its competitiveness,” said Silvia on Friday (17/2/2023).

Therefore, awareness of the importance of digital platforms can meet the needs of Bali’s tourism industry through strengthening branding and increasing sales through the participation of netizens.