Tourists’ Spending Power In Bali Increases As Rupiah Value Drops & Low Season Begins

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Whether we like it or not, money has a huge influence on our travel decisions. Here at The Bali Sun, we try to live our best lives irrespective of the number on the screen when we check our account, but we’re also super realistic.

The Indonesian Rupiah has weakened, which is concerning in many ways; however, economists are noting that this could offer unexpected benefits to both international and domestic tourists. 

The Indonesian Rupiah has weakened against the US dollar. For Indonesian nationals and those who earn in IDR, this is a concerning market trend.

This makes purchasing power with Indonesian Rupiah weaker, making it more expensive to spend money abroad. Economists and tourism leaders in Bali are looking at the situation through rose-tinted glasses.

As the low season rolls on in Bali, everything from room rates to day trip prices tends to drop. With the Indonesian Rupiah weakened, alongside a seasonal drop in travel costs in Bali, for international tourists, this is one of the best times to travel to Bali in terms of value for money.

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Professor of the Faculty of Economics and Business at Undiknas Denpasar, Dr IB Raka Suardana, spoke to reporters about his observations of the market. He shared, “For hotels and accommodations targeting the international market, the weakening rupiah actually increases Bali’s appeal because it makes it a more competitive destination in terms of price.”

It also has a benefit for domestic tourists, since it is now more affordable to travel to the country’s most popular destinations, rather than its international competitors. There have been plenty of discussions from leaders within the central and Bali provincial governments over the last few years about the cost of travel to Bali.

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There have been concerns that the price of domestic flights to Bali from major cities across Indonesia has been higher than travel to similar destinations around Southeast Asia, prompting Indonesian travellers to book vacations abroad rather than across the archipelago. 

Prof Suardana continued, “The weakening rupiah certainly impacts domestic tourists in two ways: domestic tourism becomes relatively cheaper, so Indonesian tourists have stronger purchasing power compared to traveling abroad.”

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The academic noted that Bali must continue to attract an increasing number of international tourists, but also focus on welcoming more domestic tourists too.

He explained that many tourism businesses in Bali overlook the domestic market since the purchasing power is deemed less powerful.

Prof Suardana shared, “The average expenditure of domestic tourists is still lower than that of International tourists, so their contribution to foreign exchange and tourism revenue is also smaller.”

He concluded, “Domestic tourists can provide a more stable basis for demand, but the international segment remains crucial to maintaining the quality of Bali’s tourism economic growth.”

International tourists who are looking to snap up last-minute travel deals to Bali are in luck. While it is true that booking travel long in advance helps make savings, so too does booking super last-minute.

This is true for flights and accommodation. It is also true that staying longer also helps reduce the price of accommodation.

Many of Bali’s most in-demand and luxurious hotels and resorts offer stay longer, save more deals on everything from 3-5 night stays, all the way through to two-week getaways. 

With the cost of travel to Bali more affordable than usual, now is a fantastic time to see as much of the island as possible, especially considering it is low season. With fewer crowds, more value for money, what is stopping you from booking that trip?!

Now is the best time to create a multi-stop itinerary that ticks off all of Bali’s best destinations and cultural attractions, including Canggu, Seminyak, Ubud, Uluwatu, and Nusa Penida.