In the 1970s, the Balinese economy was largely agriculture-based in terms of both output and employment. Tourism is now the largest single industry in terms of income, and as a result, Bali is one of Indonesia's wealthiest regions. In 2003, around 80% of Bali's economy was tourism related. By the end of June 2011, the rate of
non-performing loans of all banks in Bali were 2.23%, lower than the average of Indonesian banking industry non-performing loan rates (about 5%). The economy, however, suffered significantly as a result of the terrorist bombings in
2002 and
2005. The tourism industry has since recovered from these events.
Agriculture Although tourism produces the GDP's largest output, agriculture is still the island's biggest employer. Fishing also provides a significant number of jobs. Bali is also famous for its
artisans who produce a vast array of handicrafts, including
batik and
ikat cloth and clothing,
wooden carvings, stone carvings, painted art and silverware. Notably, individual villages typically adopt a single product, such as wind chimes or wooden furniture. The
Arabica coffee production region is the highland region of
Kintamani near
Mount Batur. Generally, Balinese coffee is processed using the wet method. This results in a sweet, soft coffee with good consistency. Typical flavours include lemon and other citrus notes. Many coffee farmers in Kintamani are members of a traditional farming system called
Subak Abian, which is based on the
Hindu philosophy of "
Tri Hita Karana". According to this philosophy, the three causes of happiness are good relations with
God, other people, and the environment. The Subak Abian system is ideally suited to the production of
fair trade and
organic coffee production. Arabica coffee from Kintamani is the first product in Indonesia to request a
geographical indication.
Tourism In 2025, Bali received 6,948,754 international tourists, an increase of 9.72% compared to 2024.. is a popular tourist spot.
procession on the eve of Nyepi'' and sunrise in
Lovina In 1963, the Bali Beach Hotel in
Sanur was built by
Sukarno and boosted tourism in Bali. Before the Bali Beach Hotel construction, there were only three significant tourist-class hotels on the island. Construction of hotels and restaurants began to spread throughout Bali. Tourism further increased in Bali after the
Ngurah Rai International Airport opened in 1970. The Buleleng regency government encouraged the tourism sector as one of the mainstays for economic progress and social welfare. The
tourism industry is primarily focused in the south, while also significant in the other parts of the island. The prominent tourist locations are the town of
Kuta (with its beach), and its outer suburbs of
Legian and
Seminyak (which were once independent townships), the east coast town of
Sanur (once the only tourist hub),
Ubud towards the centre of the island, to the south of the
Ngurah Rai International Airport,
Jimbaran and the newer developments of
Nusa Dua and
Pecatu. The United States government lifted its travel warnings in 2008. The Australian government issued an advisory on Friday, 4 May 2012, with the overall level of this advisory lowered to 'Exercise a high degree of caution'. The Swedish government issued a new warning on Sunday, 10 June 2012, because of one tourist who died from methanol poisoning. Australia last issued an advisory on Monday, 5 January 2015, due to new terrorist threats. An offshoot of tourism is the growing real estate industry. Bali's real estate has been rapidly developing in the main tourist areas of Kuta, Legian, Seminyak, and Oberoi. Most recently, high-end 5-star projects are under development on the Bukit peninsula, on the island's south side. Expensive villas are being developed along the cliff sides of south Bali, with commanding panoramic ocean views. Foreign and domestic, many
Jakarta individuals and companies are fairly active, and investment into other areas of the island also continues to grow. Land prices, despite the worldwide economic crisis, have remained stable. In the last half of 2008, Indonesia's currency had dropped approximately 30% against the US dollar, providing many overseas visitors with improved value for their currencies. Bali's tourism economy survived the terrorist bombings of 2002 and 2005, and the tourism industry has slowly recovered and surpassed its pre-terrorist bombing levels; the long-term trend has been a steady increase in visitor arrivals. In 2010, Bali received 2.57 million foreign tourists, which surpassed the target of 2.0–2.3 million tourists. The average occupancy of starred hotels achieved 65%, so the island still should be able to accommodate tourists for some years without any addition of new rooms/hotels, although at the peak season some of them are fully booked. Bali received the Best Island award from
Travel and Leisure in 2010. Bali won because of its attractive surroundings (both mountain and coastal areas), diverse tourist attractions, excellent international and local restaurants, and the friendliness of the local people. The Balinese culture and its religion are also considered the main factor of the award. One of the most prestigious events that symbolize a strong relationship between a god and its followers is
Kecak dance. According to BBC Travel released in 2011, Bali is one of the World's Best Islands, ranking second after
Santorini, Greece. In 2006,
Elizabeth Gilbert's memoir
Eat, Pray, Love was published, and in August 2010 it was adapted into the film
Eat Pray Love. It took place at Ubud and
Padang-Padang Beach in Bali. Both the book and the film fuelled a boom in tourism in Ubud, the hill town and cultural and tourist centre that was the focus of Gilbert's quest for balance and love through traditional spirituality and healing. In January 2016, after musician
David Bowie died, it was revealed that in his
will, Bowie asked for his ashes to be scattered in Bali, conforming to
Buddhist rituals. He had visited and performed in several
Southeast Asian cities early in his career, including
Bangkok and
Singapore. Since 2011, China has displaced Japan as the second-largest supplier of tourists to Bali, while Australia still tops the list while India has also emerged as a greater supplier of tourists. Chinese tourists increased by 17% in 2011 from 2010 due to the impact of
ACFTA and new direct flights to Bali. In January 2012, Chinese tourists increased by 222.18% compared to January 2011, while Japanese tourists declined by 23.54% year on year. Bali is a very popular tourist destination for Indians. Bali authorities reported the island had 2.88 million foreign tourists and 5 million domestic tourists in 2012, marginally surpassing the expectations of 2.8 million foreign tourists. Based on a
Bank Indonesia survey in May 2013, 34.39 per cent of tourists are upper-middle class, spending between $1,286 and $5,592, and are dominated by Australia, India, France, China, Germany and the UK. Some Chinese tourists have increased their levels of spending from previous years. 30.26 per cent of tourists are middle class, spending between $662 and $1,285. In 2017 it was expected that
Chinese tourists would outnumber
Australian tourists. In January 2020, 10,000 Chinese tourists cancelled trips to Bali due to the
COVID-19 pandemic. Because of the COVID-19 pandemic travel restrictions, Bali welcomed 1.07 million international travelers in 2020, most of them between January and March, which is −87% compared to 2019. In the first half of 2021, they welcomed 43 international travelers. The pandemic presented a major blow on Bali's tourism-dependent economy. On 3 February 2022, Bali reopened again for the first foreign tourists after 2 years of being closed due to the pandemic. In 2022 Indonesia's Minister of Health, Budi Sadikin, stated that the tourism industry in Bali will be complemented by the
medical industry. At the beginning of 2023, the governor of Bali demanded a ban on the use of motorcycles by tourists. This happened after a series of accidents. Wayan Koster proposed to cancel the violators' visas. The move sparked widespread outrage on social media. == Transportation ==