Officials in Bali have expressed their concern that an unfair business practice carried out by colluding Chinese and Indonesian travel agents would be detrimental to the island’s tourism industry.
Earlier this week, Bali Vice Governor Tjokorda Oka Artha Ardana Sukawati AKA Cok Ace highlighted what he said was a longstanding issue that is coming back to the fore with the return of Chinese tourists this year.
Cok Ace said, even before the pandemic, tourists from China were “traded by the head” between Chinese and Indonesian travel agents. The practice not only deprived businesses in Bali of income from Chinese tourists, the tourists themselves have also complained that they have been robbed of the full Island of Gods experience.
The Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI) expanded on Cok Ace’s statement, explaining that Bali-based travel agents have been known to pay their counterparts in China for the exclusive right to their clients while they are in Bali. The Bali travel agents would pay US$10 to US$20 per tourist.
“In Bali, [the Balinese travel agents] would then force the tourists to purchase tour packages, buy souvenirs, take part in water sports, and so on,” Bali PHRI Deputy Chairman I Gusti Ngurah Rai Suryawijaya said.
Another way for the local travel agents to recoup their investment is by taking the tourists to partner businesses like restaurants.
Numbers wise, Chinese travelers were amongst the highest by volume on the island prior to the pandemic. In 2019, out of 6,275,210 recorded arrivals, 1,186,057 or almost 20 percent came from China.
After a long pandemic pause, Bali welcomed its first direct flight from China in late January 2023. The island’s administration is hoping for even more direct flights from China this year in anticipation of an expected boom of Chinese travelers.
In the meantime, Cok Ace said his administration is working on eradicating the unfair business practice between Chinese and Balinese travel agents.
