Tue, 14 Aug 2001

Fact and figures

DENPASAR, Bali (JP): Economic activities in the province of Bali was promising in 2000,with the growth rate of its gross domestic product (GDP) rising to 2.7 percent from minus 4.04 percent in l998.

Bali's economic growth is still, however, dominated by its tourist industry, which experienced a slight decline in l998.

Despite the fact that Bali is still the number one tourist destination in Indonesia and one of major tourist destinations in the Asia Pacific region, according to the latest survey by the Asia Wall Street Journal, it has been affected by the country's dire economic condition.

This can be seen from the slowdown in its nontourism sectors such as non-oil exports (garment, handicraft, fishery and agricultural products), investment and banking.

The unstable political and social conditions in Indonesia and some neighboring countries have directly and indirectly affected business activities (excluding tourism) in Bali.

The following data is taken from the latest report on Bali's economy released in March 2001 by Bank Indonesia's branch office in Denpasar.

Tourist industry

The tourist industry in Bali fared relatively well in 2000 with foreign tourists arrivals reaching 1.3 million and contributing Rp 5.1 trillion (about US$557 million at the current rate) to the province's GDP. This does not include tourist accommodation.

For the past 10 years, the growth in the tourist industry averaged 11.4 percent per annum, with tourists' average length of stay of 4.2 days.

It is expected that Bali will receive at least 1.44 million foreign visitors, with foreign exchange earnings of $864 million (with a daily spending of $150 and four days length of stay) in 2001.

Tourism will likely remain the island's economic backbone. The growth in the industry is also expected to boost related businesses such as the hotel and hospitality services.

Star-rated hotel occupancy rates in Bali reach between 69.6 percent and 83.8 percent (especially in five-star hotels). During peak seasons, the rates can rocket to more than 90 percent.

The foreign tourists are mostly from Japan (26 percent), Australia (17 percent), Taiwan (11 percent), England (8 percent) and Germany (6 percent). Tourists from other countries account for the remainder 32 percent.

Total revenue from non-oil exports dropped slightly to $230 million in 2000 compared to the previous year's $236 million.

Fishery products, garment and handicraft contributed to 75 percent of the total export revenue. Most of the exported items were shipped to Japan (50 percent) and the United States. Bali spent $26 million for its imports in 2000, a sharp drop from the $74 million in l999.

Due to the ongoing economic crisis, and unstable social and political conditions in Indonesia, foreign investment in Bali has been relatively low. In 2000, total foreign and domestic investment on the resort island only amounted to Rp 119 billion (about US11.9 million).

Until February 2001, Bali received $1.6 million in foreign investment or less than 10 percent of the $1.76 million in the same period the previous year.

Total population : 3.15 million Economic growth : 3.83 percent Regional GDP : Rp 17.56 billion Number of workforce : 1.75 million Per capita income : Rp 5.59 million ($590) Unemployment rate : 3.6 percent