13 Significant Economic Effects of Tourism in Bali

The development of tourism in Indonesia has an interesting travel dynamics for the nation’s development. This is not independent of the various factors that affect. In the last eight years or since the passage of democracy that voiced reform, the most dominant factor affecting is the security factor. In Bali, development in tourist areas is increasing rapidly. Various tourism facilities are increasingly enhanced to welcome the tourists who come from various worlds. Surely this will have an impact on the economy for both Bali, Indonesia, and even the local people of Bali. Here are the economic effects of tourism in Bali.

  1. The decrease of the number unemployment

In some countries that have developed the tourism sector, it is evident that the tourism sector internationally contributes significantly to the creation of employment opportunities, the creation of tourism-related enterprises such as accommodation businesses, restaurants, clubs, taxis, and souvenir artwork businesses. It also happens in Bali, tourism also contributes greatly to the unemployment in Bali.

  1. More vacancy available

The more the development of tourism in Bali, more and more are created vacancies. Tourist attractions are identical with hotels, resorts, cafes, and restaurants. Automatically, the owner will need many employees to become employees in his company. For this reason, employment in Bali is increasingly open along with the development of tourism.

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  1. The good chance for the youngster for become entrepreneurship

With the potential of tourism, this should be a great opportunity for young people who want to start a startup company around the tourist area. They can open a café business, lodging, rental camping equipment or surf board. In fact, they can also make a culinary business or food center by souvenirs typical of Bali. For this reason, Bali became an economic magnet for some people who want to shoot their business there.

  1. The increase income regional of Bali

Tourism revenues are often used to measure the economic value of a tourist area. While some local revenues are very difficult to quantify because not all tourist expenditures are clearly identifiable such as the income of informal workers such as unofficial taxi drivers, unofficial guides, and so on. However, regional tourism revenues can help generate local cash so that it can be used to build useful facilities.

  1. Foreign investment

The expenditure of the tourism sector will cause the local economy to wriggle and become a stimulus to invest and cause the financial sector to grow as the growth of other economic sectors. We can take the experience in some countries that the arrival of tourists to a tourist destination also led to the growth of foreign exchange business to provide services and convenience for tourists during their trip.

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  1. Enclave Tourism

Enclave tourism is often associated with a tourist destination considered only as a stopover. For example, a tour of cruise ship management where they just drop by at a destination without passing the night or staying in hotels that the local industry has provided as a result of the cruise ship’s visit is that the benefits are considered to be very low or even not to benefit economically for people in a destination they visit.

  1. Increase of infrastructure

Without recognized by some people, the development of an international-standardized tourism sector can be a cost burden for the government. As a result, it tends to be imposed on the tax sector in order to build the infrastructure, tax revenues should be increased, meaning that taxes on society should be raised. However, there would be the establishment of better facilities and infrastructure for the convenience of tourists. It could also directly and indirectly used by local residents as well. Such as: place of recreation, mall, and others.

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  1. Add more income toward National GDP

The contribution of tourism to government revenue can be described in two, namely: direct and indirect contributions. Direct contributions are derived from income taxes levied from tourism workers and tourism businesses in tourist areas received directly by the revenue service of a destination. Meanwhile, indirect contributions of tourism to government revenues come from taxes or customs on imported goods and taxes imposed on visiting tourists.

  1. Give much benefits for the people around tourism area

Automatically, the tourism will provide economic benefits to hotels and restaurants. For example, tourists who travel with their families need bigger rooms and more food. Indirect economic impacts can be felt by traders in the market as demand for goods / foodstuffs will increase. That is why it is really beneficial for the people around tourism area.

  1. The high competition between local and foreign company

With the development of tourist areas, economic competition will occur between local and foreign residents. They will compete to increase services or products offered to attract tourists to buy their services or goods. This is where social inequality happens sometimes. Foreigners like China are known for their super-powerful trading strategies. When the local population loses competitiveness, they may close the company.

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  1. The higher price in tourism area

Increased demand for goods and services from tourists will lead to an increase in the price of an inflation that will undoubtedly have a negative impact on local communities which in fact do not increase proportionately in revenues, if local income increases but not in proportion to the increase in prices will cause local people’s purchasing power is low.

  1. The decrease of poverty in Bali

The growing number of jobs available in Bali, eating the population in Bali slightly reduced. This is evidenced by the slums of slum dwellings in 2016. They find work through tourism in Bali. Some of them there are selling hawkers, rent a kiosk, and some even sell souvenirs around the tourist area.

  1. Increase the import of goods from abroad

The import would be increased, especially the tools of modern technology that used to provide quality services to tourists as well as maintenance costs of existing facilities. The next example is especially in developing countries, food and beverages of international standard must be brought in from abroad for reasons of unmet standard, and consequently local products and local communities as producers do not usually market their products for the benefit of tourism. While export leakage often occurs in the development of tourist destinations, especially in poor or developing countries that tend to require capital and large investment to build infrastructure and other tourism facilities.

Those are the Economical effects of tourism in bali. Someday when you visit Bali, don’t forget to buy some souvenirs and culinary there. It would better to explore and stay at the hotel for a while. Visiting Bali would be a very unforgettable moment during your life.