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Tourism stakeholders in Badung are calling for a more significant reinvestment of the Hotel and Restaurant Tax (PHR) revenue into the tourism sector.
These concerns were raised during the Economic Dialogue for Badung Regent Candidates, hosted by the Badung Chamber of Commerce on November 15 at the Made Bali Hotel in Mengwi. The dialogue highlighted dissatisfaction with the lack of concrete programs benefiting the tourism sector, despite its vital role in the region's economy.
The tourism sector accounts for over 80% of Badung's Regional Original Revenue (PAD). Yet, industry leaders believe that adequate government action does not match its significant contributions. They expressed frustration that PHR funds, while substantial, are not sufficiently reinvested into initiatives that would enhance the region's tourism potential.
Participants in the discussion criticized the proposed plans of regent candidates, describing them as lacking clear, reciprocal benefits for tourism. They emphasized that while the government uses tax revenue generated by the tourism sector for development, little is returned to the industry itself.
Needs for greater promotion efforts
Stakeholders pointed out that tourism promotion, a responsibility they see as falling under the government's purview, has been insufficient. While digital marketing efforts are underway, participation in international promotional events remains limited. This leaves a gap in efforts to expand Bali's global reach as a destination.
They noted that the funds allocated for tourism promotion are minimal. Events like the Bali & Beyond Travel Fair (BBTF), which plays a key role in showcasing Bali internationally, operate largely without local government support, even though such events are critical for sustaining the sector's growth.
To address these shortcomings, industry representatives proposed that a portion of PHR revenue be earmarked specifically for tourism-related programs. They suggested allocating 2-5% of PHR funds for initiatives such as international event sponsorships and promotional activities aimed at increasing global awareness of Bali's offerings.
It was highlighted that a reinvestment of even a small percentage of the PHR revenue would be a significant step toward ensuring the sustainability and growth of Bali's tourism sector.
As the discussion concluded, stakeholders urged the next leadership in Badung to prioritize tourism development in a tangible way, moving beyond general promises. They stressed the importance of a clear commitment to reinvesting in the sector, given its central role in the region's economic success.