DENPASAR, Bali — Bali may be welcoming fewer foreign visitors this year, but the island is collecting more money from tourism.
According to Bali Governor Wayan Koster, foreign tourist arrivals fell by around 7 percent in May 2026 compared with the same period last year, following a 9 percent decline in April.
The decline comes amid global uncertainty, including disruptions to flight routes between Europe and Asia linked to tensions in the Middle East.
Yet despite fewer visitors, Bali’s Hotel and Restaurant Tax (PHR) revenue continues to climb.
The provincial government recorded Rp2.89 trillion in PHR revenue between January 1 and May 27, up from Rp2.62 trillion during the same period in 2025. By the end of May, the figure is projected to reach Rp2.9 trillion.
For Koster, the numbers reinforce a message he has increasingly promoted: Bali should focus less on visitor volume and more on visitor quality.
“PHR revenue has increased by around Rp300 billion,” Koster told reporters on Monday.
The governor said the figures suggest many of the tourists currently visiting Bali are spending more, staying in licensed accommodation, and contributing directly to the formal economy.
He went further, suggesting that some of the visitors no longer coming to Bali may have been using unlicensed accommodation in previous years.
“It is possible that the 7 percent who did not come were previously staying in hotels that were not licensed,” Koster said.
The remark comes as Bali authorities continue efforts to crack down on unlicensed tourism businesses operating across the island.
Provincial officials have recently met with several online travel agencies (OTAs) to discuss measures aimed at improving compliance among hotels and villas listed on their platforms.
The issue has become a growing concern as Bali attempts to balance tourism growth with regulation, tax collection, and long-term sustainability.
For decades, success in Bali’s tourism industry was measured largely by arrival numbers. But officials now appear increasingly interested in what those visitors contribute after they arrive.
The latest tax figures provide ammunition for that argument.
While visitor numbers have softened, spending appears to remain strong, particularly among travelers using registered hotels and restaurants.
Still, challenges remain.
Much of Bali’s tourism activity—and the tax revenue it generates—continues to be concentrated in the island’s south.
According to Achris Sarwani, a broader distribution of visitors across Bali would help ensure that more regions benefit from the industry’s economic gains.
“We need more even distribution so that the benefits can be felt more widely,” Achris said.
Whether Bali’s “quality over quantity” approach can be sustained remains to be seen. But for now, the island’s latest figures suggest that fewer tourists do not necessarily mean less money.
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