The State News Agency ANTARA reports that Bali is struggling to survive and keep its head above water economically against the backdrop of the continuing conflict involving the USA, Israel, and Iran that commenced on 28 February 2026.
No reliable end is in sight to the escalating warfare, with negotiations for a ceasefire failing to come to any mutually agreeable terms.
While the physical battles are taking place in areas far removed from Bali. The economic impact of the conflict is making itself acutely felt within the Island’s dominant tourism industry. The tensions in the Middle East have led to the closure of airspace and the cancellation of flights that once brought thousands of tourists to Bali.
According to the management of Bali’s I Gusti Ngurah Rai International Airport, during the initial attacks on Iran by the USA between 28 February and 06 March 2026, a total of 64 scheduled international departing and arriving flights were canceled.
Based on data collated by Angkasa Pura I Indonesia (API), the airport’s management company, during the same one-week period, 8,187 international passengers had their flights postponed. Most of the affected travelers took alternative flights from Doha, Abu Dhabi, and Dubai to continue their journeys to their home countries, such as the United States and Europe.
Flights continue to be disrupted with no definite end to the armed hostilities in sight. Meanwhile, Bali seeks new emerging tourism markets, such as India, China, South Korea, Japan, and other Southeast Asian countries, which are promising opportunities for continued growth.
Australia continues to dominate as a source of foreign visitors to Bali, with efforts underway to grow arrivals from the antipodes to sustain the Island’s tourism amid the current crisis, as it did during the recent COVID-19 pandemic.
Accordingly, in 2025, Australia contributed 1.6 million visitors to Bali. During 2025, a total of 6.94 million foreign tourists visited Bali, representing a 9.72 percent increase when compared to 2024.
One of several current challenges confronting Bali is how best to expand flights between Bali and Japan. Previously, several Japanese airlines operated direct flights to Bali, but these have now been discontinued, leaving only Garuda Indonesia providing this service.
The Japanese Consul General in Denpasar, Miyakawa Katsutoshi, recently stated that Bali remains a popular tourist destination for Japanese students seeking to learn about culture, traditions, and nature. Katsutoshi believes that tourism operators in Bali have a significant opportunity to develop this potential.
Culturally based tourism packages and tourist villages, as well as special-interest tourism, such as sports tourism, can be products that need to be enhanced and offered to tourists to attract “new” visitors to Bali.
Promotion, which can be conducted through various means, including utilizing technology and social media, also needs to be continuously improved and updated for specific tourist segments, such as cruise ships.
Currently, the improved cruise ship dock infrastructure at the Port of Benoa in South Bali and Celukan Bawang Port in Buleleng Regency is expected to boost the arrival of these well-heeled cruise tourists.
Pelindo Benoa recorded that in 2025, 65 cruise ships called at the Port of Benoa, carrying approximately 140,000 international tourists. The number of visits has increased significantly compared to 2024, when there were 56 cruise ship visits, totaling 107,717 foreign tourists departing and arriving in Bali.
Meanwhile, in 2026, a total of 73 large cruise ships are already registered to call at Benoa, Bali.
The rise in global oil prices is predicted to impact other economic activities, including transportation ticket prices. The government has anticipated this by providing transportation ticket discounts, particularly during the peak seasons of the Nyepi and Eid al-Fitr holidays in 2026, with a budget support of Rp 911.16 billion.
Discounts of up to 30 percent are also offered for trains, ships, and toll roads.
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