CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Bali does not expect a return to full-scale tourism until 2024

By Aaron Woolner

07:59, 30 November 2021

Empty pool lounge chairs at Revivo Wellness Resort, Bali
Empty pool lounge chairs at Revivo Wellness Resort, Bali - Photo: Revivo

With one eye on the Group of 20 (G20) summit that Indonesia is due to hold in Bali next October, local authorities are taking a gradual approach to reopening to tourists and are only expecting a full return to 2019 numbers by 2024.

The last full year before the pandemic saw over six million people visit the Southeast Asian tourist island of Bali, a figure that slumped to just over one million in 2020. Despite Indonesia recently reopening the tourist destination, along with the Riau Islands, to international visitors, Balinese officials are prioritising health protocols ahead of visitor numbers. 

Dewa Bayu, head of tourism marketing for Badung Regency, the area of Bali containing visitors’ favourites such as Kuta, Seminyak and Nusa, told Capital.com that local government officials are taking a strategic approach to reopening. 

Important to build trust with tourists

Speaking through a translator at an event to promote small- and medium-sized businesses on the island at the Revivo Wellness Resort in Nusa Dua on Sunday, Bayu said it was important to focus on high-end facilities which are best able to meet enhanced cleanliness protocols. 

“This is just the beginning. The expectation is for reopening to happen in 2022 and reaching 2019 tourists levels will happen by 2024.  

“To do this we must have a quality first approach where we achieve trust with trust by having visitors who come with health insurance and stay at facilities with the highest levels of COVID health protocols. Then we can achieve a return to previous tourist numbers,” Bayu said. 

Revivo staff preparing for an eventDewa Bayu said it was important to focus on high-end facilities and best able to meet enhanced cleanliness protocols - Photo: Revivo

The online transition

Separately, the government is looking to transition firms that previously relied on selling local products to visitors from physical to web-based businesses. 

Gregory Hasanov Bachtiar, founder of Orchid Associates Group is advising local firms on how to deal with issues such as licensing, promotion and investment in a bid to throw an economic lifeline to local producers. 

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040

XRP/USD

0.62 Price
+0.290% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

BTC/USD

38,818.00 Price
-0.080% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Gold

2,072.25 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.30

“We are looking to support businesses to go online, to advise them on how to reach the international market, and also local e-commerce platforms such as Shopify and Gojek,” he told Capital.com at the same event. 

“Genuine” products will succeed

A display of jamu and its ingredients of ginger and turmericJamu, a health drink that uses ingredients like ginger and turmeric - Photo: Shutterstock

Bachtiar is focussing on three main lines of business, health drinks - known as jamu which include ingredients such as ginger and turmeric - cosmetics and jewelry.  

“What we can promote best for the international market is products that are genuinely about Bali. We tell people, ‘create something beautiful, something that will resonate with you and your potential customers’.

“A lot of people need investment. But ultimately you can have as much investment as you like if the product is not genuine and is not of value, it won’t grow.”

Australian market is the first target

Australia is the main export market at the moment, products like jamu have a short shelf life making shorter shipping times helpful, while Bali has a strong brand recognition among Australian consumers. 

Bachtiar says that so far progress has been slow with many businesses confused by the challenges involved in switching to an online approach but he is confident that the long-term outlook is positive. 

“By looking at the international market it’s possible that firms which previously relied on selling products to tourists to Bali can potentially reach a bigger market internationally than they could in 2019, before the pandemic started.” 

Read more: Life beyond Covid as Southeast Asia ambles back to a new normal

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading