In 2022, the gross domestic regional product (GDRP) per capita in Bali was estimated at 55.55 million Indonesian rupiah, while the national GDRP per capita was about 71 million Indonesian rupiah. During the surveyed period, the GDRP per capita in the Province of Bali tends to increase. Despite hindered growth after 2019 due to the COVID-19 pandemic, as Bali's economy depends heavily on tourism, the GDRP per capita has seen signs of recovery as the value increased in 2022. (Statista, 2023)

Indonesian government has set an ambitious target of welcoming 12 million tourists nationwide in the year 2024. Notably, the enchanting island of Bali shoulders a significant portion of this goal, with an allocation of 5.5 to 7.5 million visitors, making it the primary gateway for international tourists entering Indonesia.

Tourists spend money on accommodation, food and beverages, transportation, entertainment, and retail. This spending directly contributes to the GDP of a destination. For example, the World Travel & Tourism Council (WTTC) reported that in 2019, tourism directly contributed approximately 10.3% to the global GDP. 

Supply chain effects in indirect economic. Tourism stimulates economic activity in industries that supply goods and services to tourism-related businesses. For example, agriculture, construction, and manufacturing sectors provide food, infrastructure, and equipment to hotels and restaurants. 

The induced effect is a reflection of the tourism multiplier, where initial spending by tourists leads to a chain reaction of economic activity. The multiplier effect varies by region but typically ranges from 1.5 to 2.5, indicating that each dollar spent by tourists can generate an additional $1.50 to $2.50 in economic activity. 

Tourism is a significant contributor to Bali's GDP. In recent years, it has accounted for a substantial portion of the province's economic output. According to the Bali Statistics Agency, the tourism sector contributes approximately 55-60% of Bali's GDP. This high percentage highlights the island's dependence on tourism for economic growth and stability. 

In 2020, 236,000 people in Bali worked in the tourism sector, compared with 328,000 the previous year, according to data from Indonesia’s Ministry of Tourism and Creative Economy. Tourism had grown to be Bali's main economic sector, direct supporting roughly 58,000 jobs with more than 20% of the population directly dependent on the sector. The overall contribution of tourism to Bali's economy is estimated to be in the region of 60-70%.

Tourism directly generates employment in sectors such as hotels, restaurants, tour operators, and attractions. According to the WTTC, travel and tourism directly supported 75 million jobs worldwide in 2019. Jobs created in the tourism sector lead to increased household incomes, which boosts consumption and economic activity. 

Indirect employment is generated in industries that support tourism, such as agriculture (providing food to restaurants), construction (building hotels and attractions), and manufacturing (producing goods sold to tourists). The WTTC estimates that indirect employment accounts for an additional significant portion of jobs supported by tourism.  Increased demand for skilled labor in the tourism sector can lead to investment in education and training, improving workforce quality and employability in the broader economy. 

The induced economic activity from increased household spending supports jobs across a wide range of sectors. For example, a hotel worker's spending on groceries, transportation, and entertainment supports jobs in those sectors. The overall increase in economic activity can lead to improvements in community infrastructure and services, enhancing quality of life and further supporting local employment.

Tourism is a major source of employment in Bali, providing jobs both directly and indirectly. Direct employment includes jobs in hotels, restaurants, travel agencies and attractions, while indirect employment encompasses sectors such as agriculture, construction and transportation, which support the tourism industry. The World Travel & Tourism Council (WTTC) reported that tourism directly supported over 1 million jobs in Bali. Considering the indirect employment, this number significantly increases, showcasing the sector's role in reducing unemployment and providing livelihood opportunities.