Denpasar. Bali Governor I Wayan Koster has dismissed rumors of widespread layoffs in the island’s tourism industry, claiming that the sector is currently experiencing a surge in hotel occupancy rates amid strong domestic and international demand.

“Hotels are full. The Meru Sanur is at 96 percent occupancy, hotels in Nusa Dua are over 90 percent, in Kuta around 80 percent, and even in Buleleng, occupancy has reached 70 percent,” Koster said in Denpasar on Sunday. “There are layoffs, but not in the tourism sector.”

The governor stressed that Bali’s tourism sector has continued to recover strongly following the COVID-19 pandemic. Last year, the island welcomed 6.4 million international tourists and 9.5 million domestic visitors.

According to provincial government data, international arrivals in the first half of 2025 rose by 10 percent compared to the same period in 2024.

Koster noted that domestic tourism has also surged, especially in June, driven by the school holiday season.

“Even I couldn’t find a flight from Jakarta to Bali. I had to call Garuda Indonesia’s CEO just to secure a ticket. Bali is packed with visitors,” he said.

Koster acknowledged that layoffs did occur recently at a soft drink factory in Badung Regency, but said this was due to declining demand for the product, not related to the tourism industry.

“If this issue of layoffs isn’t clarified, it could damage the reputation of Bali’s tourism sector,” he warned.

Government data shows that Bali’s economy grew by 5.48 percent, outpacing the national average, with unemployment at just 1.79 percent and a poverty rate of 3.8 percent.

Koster also said the provincial government will crack down on tourism businesses that engage in tax evasion schemes, including property owners who illegally rent out houses or villas without paying hotel and restaurant taxes.