Bali's survival strategies as global conflict disrupts travel
..market diversification has become one of the key strategies to ensure the long-term sustainability of Bali’s economy, which is heavily dependent on the tourism sector.Denpasar, Bali (ANTARA) - The world is currently facing heightened uncertainty, particularly amid ongoing geopolitical tensions between Iran, the United States, and Israel, which show no signs of abating.
While the conflict is geographically distant from Indonesia, its impact is being felt acutely at home—particularly in Bali, where the economy is driven primarily by the tourism sector.
The tensions in the Middle East have led to widespread airspace closures, severely disrupting international air travel. Management at Bali’s I Gusti Ngurah Rai International Airport reported that between the initial strikes in Iran on February 28 and March 6, 2026, a total of 64 international flights were canceled, comprising 34 departures and 30 arrivals.
According to airline data compiled by state-owned airport operator Angkasa Pura Indonesia, at the airport, 8,187 international passengers scheduled to depart during that period were forced to postpone their travel.
On average, the affected travelers had been booked on routes involving layovers in Doha, Abu Dhabi, and Dubai before continuing to destinations such as the United States and European countries.
Bali Governor Wayan Koster noted that the airspace closures have led to a reduction in foreign tourist arrivals of up to 800 people per day.
Air traffic is now gradually resuming as Middle East airspace reopens, albeit on a limited basis and amid a highly unpredictable situation.
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Mitigation
Insights from modern marketing experts—Philip Kotler, a professor at Northwestern University, and Gary Armstrong of the University of North Carolina—could be used as a guide for how marketing can drive economic activity during such challenging times.
In the 17th edition of their book, Principles of Marketing, they suggest a straightforward approach: attracting new markets while effectively managing existing ones that have consistently delivered value.
Based on this concept, market diversification has become one of the key strategies to ensure the long-term sustainability of Bali’s economy, which is heavily dependent on the tourism sector.
Emerging tourism markets such as India, China, South Korea, Japan, and Southeast Asian countries present significant opportunities.
Numerous direct flights connect Bali with these countries without requiring transit through Middle Eastern hubs such as Doha, Dubai, and Abu Dhabi.
Tourist arrivals from these markets have also been rising. According to 2025 data from Statistics Indonesia (BPS) Bali, India ranked second in tourist arrivals with over 569,000 visitors, followed by China with more than 537,000.
The second strategy involves maintaining traditional markets that have consistently supported Bali’s tourism sector, particularly Australia.
As Indonesia’s southern neighbor, Australia has reclaimed its position as the largest source of foreign tourists to Bali following the COVID-19 pandemic, with more than 1.6 million arrivals in 2025.
In terms of growth, tourist arrivals from China, South Korea, and Japan increased significantly in 2025—by 19.83 percent, 17.91 percent, and 17.96 percent, respectively, compared to the previous year.
Overall, Bali welcomed 6.94 million foreign tourists in 2025, marking a 9.72 percent increase from 2024.
One of the key priorities moving forward is to further expand direct flight connectivity between Bali and Japan.
While Japanese airlines previously operated direct flights to Bali, those services have since been suspended, leaving Garuda Indonesia, the national flag carrier, as the sole provider of direct connectivity.
The Japanese Consul General in Denpasar, Katsutoshi Miyakawa, noted that Bali has become a top destination for Japanese student study tours focused on culture, traditions, and nature, offering a significant opportunity for the island’s tourism stakeholders to optimize and tap into.
The US and European markets also have a significant contribution; the two remain targets of Bali’s tourism while monitoring the developments of conflict in the Middle East. Alternative transit routes via Singapore, Thailand, Taiwan, and Türkiye provide viable options, with direct connections to Bali.
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Tourists’ characters
In addition to market diversification and maintaining the existing markets, another step that can be taken is increasing the number of products that can offer a meaningful experience to tourists.
Travel packages centered on culture, village tourism, and niche markets such as sports tourism, are among those that should be further developed and promoted.
Targeted promotional strategies—particularly through digital platforms and social media—are essential to reach specific segments, including cruise tourism.
Currently, the cruise infrastructure at Benoa Port in Denpasar and Celukan Bawang Port in Buleleng District is expected to boost arrivals from these high-spending tourists.
According to state-owned port operator Pelindo, 65 cruise ships operated by global liners docked at Benoa Port in 2025, bringing in approximately 140,000 international tourists.
This represents a significant jump from 2024, which saw 56 cruise calls and a total passenger flow—including arrivals and departures—of 107,717 foreign travelers.
In 2026, 73 large cruise ships are already scheduled to dock at Benoa Port.
In tourism promotion, Millennials and Generation Z cannot be overlooked. As tech-savvy generations, they prioritize technological convenience, making digital services—such as the Quick Response Code Indonesian Standard or QRIS-based payments—increasingly important.
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Global oil challenges
Another impact of the Middl