Bali urged to diversify investment beyond tourism and property

Denpasar — Bali’s economy grew 5.85% year on year in the third quarter of 2026, according to data released by the province’s Central Statistics Agency on November 5. The growth was higher than in the previous quarter but below the 5.88% recorded in the same quarter a year earlier.

Why it matters: The figures show why Bali’s tourism-dependent economy is prompting calls for more productive investment in northern and non-tourism sectors.

The latest development was followed on November 7 by calls for Bali to strengthen non-tourism sectors and spread investment more evenly across the island. An economics professor at Undiknas University, Ida Bagus Raka Suardana, said the province should develop modern agriculture, fisheries, processing industries, the creative economy and small and medium-sized enterprises.

Raka also said investment should be directed towards productive sectors that create local added value, rather than being concentrated in hotels, villas and tourism facilities. He identified northern Bali as a strategic area for more balanced development, citing its potential in agriculture, fisheries, marine activities, processing and nature- and culture-based tourism.

BaliPost reported that the Central Statistics Agency attributed much of the province’s economic performance to tourism and household consumption. Accommodation and food services contributed 1.27 percentage points to growth in the third quarter, down from 2.13 points in the same period of 2025.

Foreign tourist arrivals increased 0.94% in the quarter, while domestic tourist travel rose by about 0.8%, according to the report. Bali’s economy grew 5.74% cumulatively through the third quarter.

The figures underline the economic exposure created by Bali’s dependence on tourism, as disruptions to flights, tourist arrivals or global travel patterns can affect businesses and employment across the province, Raka said.

Sources

• BaliPost
• NusaBali
• Tribun Bali