Page 48 - Demo

Key drivers
Consumption from the public and private sectors and strong export growth were contributing factors. The hotel and restaurant industry contributed the most and absorbed the largest numbers of 'new labour' to the market with the main markets being China and Australia. Significant spending on infrastructure has reinforced the island's tourism industry.
Income and inflation
Provincial and regional governments spending has slowed down in this period. But the central government has increased the amount spent on Bali. Bali's Provincial and Regional Governments saw a 13% increase in income with an inflation rate at about 2.7%. The same period last year showed a 9.5% increase in income with inflation at 4% with inflation in Bali lower than the national average of 3.7%, which is predicted to continue.
Economic indicators
The private sector's general consumption, health and education, restaurants, hotels, mortgages, fuel, general bank credits and car/motorbike sales among others have continued to grow. Domestic investments have remained stable, while foreign investments are increasing. BI suggests this is a normal trend now for Bali. Positive increases expected in exports to the main markets of the US, Singapore, and Australia include fish, wood, furniture, and jewellery.
Global tourism trends
Bali's tourism industry reflects a global trend of 'expe- riencing' holidays, with numbers comparing average length of stay between the star-rated average of 3 nights stay per guest and non-star rated properties, including villas with almost twice this length of stay.ships are big business as infrastructure initiatives begin to take shape.
The future
Bali’s strategy is focused on the tourism industry with visitor arrivals growing by an exceptional 24%, the industry contribution is 48% of the overall economy, it generates 68% of taxable income and absorbs 42% of new labour. Bali is also adopting a new role as a hub to feed the freshly developing tourism industries in other regions.
Central and Provincial governments have developed a strategy for tourism:
Create a clear roadmap forward.
Drive tourism towards village/communities and agro-tourism. Develop strategic alliances between all stakeholders. Have a strong focus on infrastructure developments.
In conclusion
The BI report presents a strong and positive outlook forward. With general improvements and good signs in the economies of the US, China and partly the EU, Indonesia in general and Bali, in particular, should continue to shine brightly.