US-Iran Tensions Lead to Tourism Decline as Bali's PHR Revenue Rises

US-Iran tensions caused a 7-9% decline in foreign tourist arrivals to Bali in May, yet hotel and restaurant tax (PHR) revenue rose. Bali Governor Wayan Koster stated at a press conference for the Bali and Beyond Travel Fair 2026 at The Westin Resort Nusa Dua on 30 May that arrivals fell by 7% between 1-27 May, down from a 9% drop in April. PHR reached approximately Rp2.67 trillion by 27 May, with projections of Rp2.9 trillion by month-end. Hotel revenue increased from Rp1.7 trillion to Rp1.8 trillion, while restaurant revenue rose from Rp88.5 billion to Rp139 billion. Koster noted the data, sourced from an online system, showed growth across most regencies except Buleleng and Klungkung. Despite fewer foreign visitors, tax contributions from tourism increased, indicating higher spending per tourist.