Biology of Business

Bali

TL;DR

Bali's 5.78M foreign arrivals (2024) exceeded pre-pandemic levels—tourism monoculture recovered but concentration risk unchanged.

province in Indonesia

By Alex Denne

Bali demonstrates how tourism monocultures can achieve remarkable scale while creating concentrated vulnerability. The island's economy grew 5.48% in 2024—outpacing Indonesia's 5.03% national average—driven by tourism that now represents 21.75% of provincial GDP. From January to November 2024, Bali received 5.78 million foreign arrivals, exceeding 2019's pre-pandemic total of 5.72 million. By October 2025, international visitors reached 5.89 million, up 11% year-on-year, with projections approaching 7 million by year-end.

Australia leads arrivals (147,581 in October 2025 alone), followed by China and India. Hotel occupancy reached 66.34% in September 2024, up from 2019 levels. The accommodation and food/beverage sector saw the largest job gains, with total employment reaching 2.67 million by August 2024—an increase of 47,600 year-on-year. President Prabowo Subianto has declared ambitions to make Bali 'the new Singapore or Hong Kong,' announcing plans for a North Bali International Airport to unlock investment in the island's underdeveloped north.

Yet COVID-19 exposed the fragility of tourism dependency. When international travel halted, Bali's economy collapsed faster than diversified provinces. The island now represents a natural experiment in recovery: structural improvement is evident, but the fundamental bet on tourism concentration remains unchanged. The same mechanisms that enable rapid growth—network effects from reputation, ecosystem engineering of cultural experiences—create single-point-of-failure risk when external shocks close borders.

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