Battered by coronavirus, Bali hopes for uptick in tourism over holiday season

Indonesia is grappling with the largest coronavirus outbreak in Southeast Asia and Bali’s tourism-reliant industries are bearing the brunt

As it debates opening up to international tourists, there are signs of a turnaround, with an increase in local travellers

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An empty beach in Bali. The island saw a surge in domestic holidaymakers during a long weekend at the end of October, which lifted occupancy at luxury hotels to 30 per cent that week. Photo: Reuters

Published: 2:39pm, 16 Nov 2020Updated: 2:39pm, 16 Nov 2020

Bali, the hardest-hit economy among Indonesia’s provinces last quarter, is seeing a pickup in activity as its governor continues debating when and how the island can reopen to international travellers.

The province saw its gross domestic product shrink 12.28 per cent in the third quarter from a year ago, the worst contraction among Indonesia’s 34 provinces, even as domestic tourists were allowed to return in July. Its shores remain shut to foreign arrivals as the island scrapped an earlier plan to reopen in September due to a resurgence in coronavirus cases.

The local government is focused on containing the spread of infections and increasing the recovery rate while continuing to weigh a reopening to foreign tourists, said Bali Governor Wayan Koster.

“The government will take views on many aspects to avoid taking a counterproductive policy,” he added.

Indonesia is grappling with the largest coronavirus outbreak in Southeast Asia with more than 463,000 confirmed cases so far, a more than 60 per cent increase since the end of September.

The pandemic has sent the economy into its first recession in more than two decades after two consecutive quarters of annual contraction, with Bali and its tourism-reliant industries bearing the brunt.