Bali's Business Activity Strengthens as School Holidays Boost Tourism
According to a survey by Bank Indonesia's Bali representative office, business activity in Bali strengthened significantly in Q2 2026, driven by increased tourist arrivals during the school holiday season. Both the tourism and construction sectors recovered from negative growth in the previous quarter, with foreign tourist arrivals rising by more than 18%. Further growth is expected in Q3 2026.
Bank Indonesia's (BI) representative office in Bali reported that key business sectors in the province, particularly tourism and construction, showed strong improvement in the second quarter of 2026 (April-June), driven by increased visitor numbers during the school holiday season. This marks a recovery from a contraction recorded in the first quarter.
BI Bali representative head Achris Sarwani explained that the weighted net balance (SBT) score from the quarterly business survey rose to 49.32 percent, up sharply from 16.05 percent in the previous quarter. The accommodation and food service sector (tourism) improved from minus 8.32 percent to 14.62 percent, while the construction sector rose from minus 2.22 percent to 6.66 percent.
According to Statistics Indonesia (BPS) data, foreign tourist arrivals increased by 18.41 percent, from 1.46 million to 1.73 million visitors. The growth in construction was attributed to an increase in tourism-related commercial building projects such as hotels, villas, and tourist facilities.
The financial services sector also showed strong performance, supported by heightened economic activity during peak holiday season, increased lending, strong banking performance, growing digital financial transactions, and rising demand for financial services amid greater economic activity.
Looking ahead, BI forecasts continued growth in the third quarter (July-September 2026), particularly in agriculture, forestry and fisheries (driven by increased production of rice, poultry meat and eggs, and coconut), as well as in accommodation and food services, information and communication, and education services—the latter boosted by the start of the new school year in July 2026.
The survey, conducted quarterly among 130 businesses across 17 sectors throughout Bali, is designed to provide insight into business financial conditions, indicate economic development trends, and gauge business expectations regarding inflation.
Things to Consider
This report concerns economic indicators and does not pose a direct safety concern for tourists or residents. However, since it confirms continued strength in Bali's tourism sector, travelers should book hotels and villas well in advance during peak periods. Additionally, with construction activity rising in tourist areas, it may be worth checking for nearby construction work when selecting accommodation, as this could cause temporary noise or traffic disruptions.
Source: ANTARA News Bali