Tourists’ Spending Power Up in Bali: Rupiah Drop & Low Season
- 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...
- 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.
- 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,...
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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.
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.”
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 as 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.”
