According to Bisnis Bali, the Head of Bank Indonesia's representative office in Bali, Causa Iman Karana says, there are four main factors which challenge the island's economic growth; these being tourism, agriculture, exports and fiscal limitations. 

There is no doubt that tourism contributes the largest amount of revenue and is the prime driver of Bali's economy but "there are also challenges that must be solved in order to optimally develop," Karana says. 

Tourism in Bali is concentrated in the south of the island, which is where Bali's Ngurah Rai International Airport is located, but this has created problems of congestion and garbage as well as exposing the limitations of carrying capacity hotels. 

Currently more than 95% of tourist arrivals to Bali go through Ngurah Rai so alternative access points such as the construction of a new airport in the north and the optimization of the Benoa tourism port are positive steps in the right direction.

But there needs to be more. No less important is the infrastructure needed to improve connectivity such as toll roads and train services.

Karana suggests there must be more integration of holistic approaches to the industry with greater synergy between private businesses and the local government if Bali is to realize its full potential.

Source: Bisnis Bali

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