Academics Warn Bali Tourism Industry To Prepare For Global Recession

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Academics in Indonesia have voiced their concern for the tourism industry in Bali ahead of the predicted global recession. Though they are saying the economic fallout is likely less severe than that of Covid-19, professors have wanted the travel sector to not be ‘too picky’ about the visitors that come through the door.

Speaking to local reporters, Prof. Dr. Drs. I Putu Anom, B.Sc., M.Par from Udayana University, stated that before the pandemic, more than 65% of Bali’s GDP came from the tourism sector. But with many countries where Bali’s highest number of visitors come from heading into a recession, the Professor warned tourism operators to be smart with their promotions.

He explained, ‘People can travel as long as they have provisions. This is different from the pandemic, where travel was not allowed’. He suggested that tourism businesses should be observant to see what countries are experiencing a recession, especially in 2023, and create targeted promotions accordingly to ensure that deals are affordable.

Prof. Anom is also Chair of the Association of Indonesian Tourism Intellectuals in Bali. He said that tourism operators should also be observant of countries that experience less of the impacts of global recession and target promotions in an innovative way for those audiences.

Essentially, Prof. Anom is calling on Bali’s tourism sector to level up on its marketing so that promotions are targeted and create a high conversation rate. Hopefully, resulting in Bali’s economy stabilizing into 2023. 

When asked what would work best for travelers from Australia, India, Japan, and China, Prof. Anom explained, ‘The four big countries, hopefully not a recession. The economy still exists…We should not be absolute, choosing tourists who have to spend a lot of money. The name of trade, business, no matter how small it comes, accept it’.

He believes that the tourism sector should aim high but not bite off the hand that feeds it. Income from domestic tourism and budget-conscious travelers should not be overlooked heading into the New Year.

He also noted that the tourism sector is responsible for working smart due to the ‘multiplayer effect’ the industry has on the island’s economy. Tourism provides work in other areas of the labor market, agriculture, transportation, and more. 

This week tourism operators have told reports that they hope to see tourists return from China in 2023. Before the pandemic, Bali regularly welcomes over 1 million tourists from mainland China every year. With direct flights still on hold and travel restrictions for Chinese citizens, many tourism operators in Bali are banking on travel from China reopening in the coming months. 

Despite warnings of a global recession, the cost of living crisis for many countries worldwide, and rising fuel costs, officials in Bali are hopeful that the momentum built in 2022 will continue into 2023. Speaking earlier in the week, the Provincial Secretary for Bali, Dewa Made Indra, told reporters he is hopeful that the G20 will be a huge turning point for the tourism sector.

He explained, ‘I, the Governor, we all have optimism. We [will] have recovered in 2023. The momentum is for the G20 Summit. If it is successful, we must be optimistic that we will return to our initial positive before Covid-19’.

He feels that there will be a further boom in tourism after the International conference as people see that world leaders are safe in Bali, then tourists will be too. Indra, like Prof Anom, spoke of the importance of promotion. He shared with reporters his view that of all parties in Bali to make the G20 Summit a success to make the most of the ‘free promotion’ the summit brings.