According to the Provincial Head of the Bank of Indonesia, the majority of a tourist’s budget gets spent on food and beverages during a visit to Bali. Speaking at an event held in Sawangan in Nusa Dua, Head of Bank Indonesia’s Bali Province Representative Trisno Nugroho, revealed that 65% of tourist spending is dedicated to food and drinks.
Nugroho told the audience during a discussion, ‘Income from airline tickets, hotels, for example [are received by] the company’s hotel in Jakarta, there is a tax to the center. If tourists eat here [in Bali], food and beverage are around 65 percent, then staying in five-star hotels is a big value’.
He elaborated using an example of a mid-to-high budget tourist staying in five-star hotel. Using a budget of USD 1500, he claims around 65% of that will be spent on food and beverages. He said, ‘About the calculation, let’s say 5,000 to 10,000 people live in hotels a day, multiplied by 1,500 dollars, multiplied by 65 percent, that’s about what companies in Bali can get in [revenue as a] hotel’.
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Nugroho made the point that the food and beverage sector in Bali should not be overlooked when it comes to business planning and promoting tourism. He noted that the presence of the G20 Summit in Bali will boost the income of dining establishments in and around Nusa Dua in particular. He shared his observation that international events will be key for food and beverage businesses and operations to focus on in the near future.
He said, ‘Next year, there will be 15 international events officially held, there are others that may not be official because the hotels have not been released, next year Bali’s economic growth is estimated to increase to 5.20-6 percent on average, if 2022 it is 4.7 percent’. Suggesting that food and beverage businesses and hotel operations can predict a boost in the year to come.
Insights shared by Nugroho were echoed by the Chairman of Bali Tourism Board (BTB) Ida Bagus Agung Partha Adnyana. He said, ‘It is estimated that cafes, restaurants and beach clubs around South Bali alone can pocket a turnover of IDR 3 million to IDR 1 billion per day [for beach clubs]. Making the restaurant and cafe business grow more than 100 percent’.
Bali has welcomed dozens of new hotels, beach clubs, cafes, restaurants, and bars since borders reopened in February this year. Dozens more tourism venues have re-opened their doors after luxury refurbishments, many of which have completed a total overhaul of their food and beverage offering. Bali is well regarded for having some of the best dining establishments in South East Asia, a huge lure for thousands of tourists every year.
There are concerns by some players in the tourism sector that travelers will become more budget conscious in the next year. While Bali is on track to smash tourism targets in 2022, and into 2023, with the war in Ukraine, cost of living crisis and rising fuel prices affecting flights, many travelers are having to make cuts to their holiday budgets, even put the idea of a holiday on hold for the foreseeable future.
Concerns about the impact of the global economy on travel trends in Bali have been raised by the Bali Tourism Association. The group is calling on the central government to scrap the IDR 500,000 visa on arrival fee. The visa now costs USD 32, which adds an additional $128 to vacation for a family of four.
They argue that travelers are looking to visit other destinations nearby Bali where their travel budget can stretch further. The Bali Tourism Association noted that Thailand’s 30-day visa on arrival is free for most holidaymakers, making it a more appealing destination for some.
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Thursday 10th of November 2022
This mean that food and drinks are extremely expensive, it’s far more expensive than in Europe for example, but at same time domestic income remain still far below European average earnings.
Saturday 12th of November 2022
@Wayan Bo, food isn't more expensive, but alcoholic drinks are extreme expensive in Indonesia. A small bottle of beer similar to Bintang costs around IDR 12k in the supermarkets of most of western Europe.
Wednesday 9th of November 2022
Duh! They just figured that out? What are the tourists to live on?Love and their good looks? That's why Bali needs to concentrate more on food production rather than tourism alone.
Friday 11th of November 2022
@Firechef, Spot on m8! How do they not know this already. It's not all about the Bali t-shirts, towels/sarongs, genuine or fake products. Both food and beverages are the biggest draw card (IMO). People go to relax, eat and drink. Fantastic Indonesian food and cuisine from around the world, easy access to a variety of beverages to quench your thirst in that tropical heat. These are the two most tangible elements. Shopping would take 2nd place. Tours and activities possibly 3rd place. Transport 4th.