DENPASAR, DEWATA.NEWS – The recent weakening of the Indonesian rupiah against the US dollar is not being viewed entirely as a negative development for Bali’s tourism sector. While businesses face higher operating costs, economists say the currency movement is creating opportunities to attract more foreign visitors while also strengthening domestic travel demand.
According to Prof. Dr. I.B. Raka Suardana of the Faculty of Economics and Business at Undiknas Denpasar, a softer rupiah makes Bali relatively more affordable for international tourists.
“For hotels and accommodation providers targeting the international market, a weaker rupiah increases Bali’s appeal as a more price-competitive destination,” he said.
The exchange rate trend is also influencing travel choices among Indonesian residents. With overseas travel becoming more expensive, domestic tourists are increasingly opting for destinations within Indonesia, including Bali.
“Domestic tourism becomes relatively cheaper, so Indonesian travelers have stronger purchasing power at home compared to traveling abroad,” Prof. Raka explained.
Data from Badan Pusat Statistik Provinsi Bali (BPS Bali) reflects this shift. Head of BPS Bali, Agus Gede Hendrayana Hermawan, reported that domestic tourist trips to Bali in November 2025 reached 2,378,591 journeys. This figure represents a 10.75 percent increase month-on-month and a 32.83 percent rise year-on-year.
“Structurally, domestic travel to Bali is still dominated by intra-provincial movement, meaning travel between regencies and cities within Bali,” Agus said.
In November 2025, intra-provincial trips accounted for 1,949,438 journeys, or 81.96 percent of total domestic travel. Inter-provincial trips totaled 429,153 journeys, or 18.04 percent.
“Although intra-provincial travel remains dominant, the contribution of inter-provincial travel is significant and continues to show an upward trend,” he added.
By region of origin, East Java was the largest contributor of inter-provincial domestic tourists to Bali, with 156,208 trips recorded in November 2025, marking a 0.24 percent month-on-month increase.
Responding to the data, Prof. Raka noted that stronger domestic travel flows are an important buffer for Bali’s tourism industry amid currency pressure. However, he cautioned that domestic tourism alone cannot fully offset the rising business costs linked to a weaker rupiah.
“Average spending by domestic tourists remains lower than that of foreign visitors, so their contribution to foreign exchange earnings and overall tourism revenue is also smaller,” he said.
He emphasized the need for a balanced approach between domestic and international markets. The government is encouraged to strengthen segmented domestic tourism promotion, while tourism businesses are advised to adjust products and pricing to match domestic purchasing power.
“Domestic tourists can provide a more stable base of demand, but the international segment remains crucial to maintaining the quality and sustainability of Bali’s tourism-driven economic growth,” Prof. Raka concluded.