Bali, known for its stunning landscapes and vibrant culture, relies heavily on its business activities, particularly in tourism and agriculture. However, recent extreme weather events have significantly disrupted these sectors, posing challenges for local entrepreneurs and communities.
Heavy rains and storms have led to flight cancellations, reduced tourist arrivals, and crop damage, threatening the livelihoods of many. This article explores how these disruptions affect business activities in Bali and what local enterprises are doing to adapt.
Overview of Business Activities in Bali
The Business Activity Survey from the Bali Province Representative Office of Bank Indonesia reveals that business performance in Bali remained positive in the fourth quarter of 2024, despite a noticeable slowdown compared to the previous quarter.
The Weighted Net Balance for business activities dropped to 29.56%, a significant decline from the 65.08% recorded in the third quarter. This slowdown can be attributed to several factors, including extreme weather conditions and a decrease in tourist arrivals.
The number of visitors to Bali during this period did not match the levels seen in the prior quarter, further impacting local businesses. As a result, understanding these dynamics is essential for assessing the overall health of Bali’s economy and the resilience of its business sectors.
Impact of Extreme Weather on Business Activities
Extreme weather conditions have significantly impacted business activities in Bali, particularly during the fourth quarter of 2024.
High rainfall is expected to affect various sectors, including agriculture, forestry, and fisheries, leading to a decline in productivity as the harvest season comes to an end. Additionally, the accommodation, food, and beverage sector has also seen a downturn.
Respondents noted that this decline was largely due to decreased tourist activity during the Holiday season of Christmas and New Year, which was exacerbated by rainy weather.
The Meteorology, Climatology, and Geophysics Agency (BMKG) has issued warnings indicating that regions such as Tabanan, Badung, Gianyar, Bangli, and Denpasar are at risk of experiencing moderate to very high rainfall.
This situation raises concerns about potential hydrometeorological disasters, including floods, landslides, and strong winds, which could further disrupt business operations and threaten the livelihoods of many in Bali.
Adaptation Strategies for Businesses
Despite the challenges posed by extreme weather, respondents expect business activities in Bali to grow positively in the first quarter of 2025, with a Weighted Net Balance of 34.55%.
This optimism is largely driven by the anticipated increase in the agriculture, forestry, and fisheries sectors as the harvest season for key commodities like rice begins. To adapt to adverse conditions, many businesses are implementing strategies such as diversifying their services and enhancing their supply chain resilience.
For instance, accommodation and food sectors are adjusting their offerings to attract local tourists during religious holidays like Nyepi and Idul Fitri. Additionally, businesses are investing in better infrastructure to withstand extreme weather events, ensuring continuity in operations.
These proactive measures not only help mitigate the impact of weather disruptions but also position businesses for recovery and growth in the coming months.
Resilience in Bali’s Economy
With businesses adapting to these challenges, the outlook for Bali’s economy remains positive. Anticipated growth in the first quarter of 2025 is driven by the upcoming harvest season and significant events like the National Religious Holidays.
As sectors such as agriculture and trade prepare for increased activity, the resilience demonstrated by local enterprises will be crucial in navigating future uncertainties. By embracing innovative strategies and responding proactively to changing conditions, Bali’s businesses are poised to thrive, ensuring a sustainable economic future for the region.
Source: bisnis.com, bmkg.goid
Image: Adiartana / Getty Images
