The G20 Summit contributed to Bali’s economic growth in the third quarter of 2022 and provided a multiplier effect on the tourism industry at all levels.
At a media briefing, Sandiaga Uno, minister of the Ministry of Tourism and Creative Economy, stated that Bali’s economy in 3Q2022 experienced significant growth of up to eight per cent year-on-year as compared to three per cent the previous quarter.
He added that holding the G20 Summit in Bali delivered a strong impetus to the recovery of Indonesia’s tourism sector – the number of domestic and international travellers at the summit activities and meetings reached 20,559 people, and arrivals to Bali has now hit an average of 24,009 daily.
Direct spending stood at US$575 million, which he attributed to F&B, attractions, ground transport, telecommunications, shopping, accommodation and flights. Other organiser expenditures included PCOs, venues, vendors and government, as well as reception and marketing.
Indonesian Hotel and Restaurant Association (IHRA) reported that occupancy last year was only around 20 per cent – it has now reached nearly 70 per cent. About 80 per cent of staff shortage due to the pandemic lay-offs has also been filled.
Sandiaga said: “We project that the hotel occupancy rate in Bali will remain high, especially during the Christmas and New Year holidays.”
The minister is optimistic that the income from the tourism and creative economic sector can reach the target of US$1.7 billion this year, not only from the contribution of the G20 Summit, but also various other international events in Indonesia this year.
According to G20’s website, the G20 Summit is projected to contribute up to 7.4 trillion rupiah (US$533 million) in GDP (gross domestic product), including an increase in domestic consumption of up to 1.7 trillion rupiah.
Sandiaga commented that the event was a promotion to “meet the target of 3.6 million international tourist arrivals with a total foreign exchange earning of US$1.7 billion”.
“G20 has had the maximum and direct impact on society, such as increasing foreign tourists from 1.8 million to 3.6 million and also (creating) 600,000 to 700,700 new jobs supported by good performance in the culinary, fashion and craft sectors,” noted Nyoman Shuida, expert staff for Utilization of Maritime Resources at the Coordinating Ministry for Human Development and Culture.
The summit was attended by 17 heads of state, three foreign ministers, nine invited countries and 10 international organisations. Data from G20’s website showed the summit events absorbed a budget of 674 billion rupiah and reaped a return on investment of up to 552,000 billion rupiah for the country.