Denpasar. Now may be the cheapest time in years for foreign tourists to visit Bali as Indonesia’s rupiah hovers near a record low against the US dollar, making holidays across the archipelago significantly more affordable for overseas travelers.

The Indonesian rupiah weakened further on Friday, closing at Rp 17,716 per US dollar and moving closer to the psychologically important Rp 18,000 level, amid mounting global economic pressures and persistent capital outflows.

While the currency slide has fueled concerns over inflation and rising import costs domestically, tourism industry players say the weaker rupiah could provide a major boost for Indonesia’s tourism sector by improving the country’s price competitiveness against regional rivals.

Popular destinations including Bali, Labuan Bajo, Lake Toba and Likupang are expected to benefit as travelers holding US dollars, euros, or Singapore dollars gain stronger purchasing power in Indonesia.

“From the tourists’ expenditure side, this could be beneficial for foreign visitors, although they also need to consider higher airfare costs and global geopolitical conditions linked to rising fuel prices,” said Tjokorda Oka Artha Ardana Sukawati, chairman of the Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI).

According to Sukawati, the weaker rupiah could encourage foreign tourists to stay longer and spend more during their holidays in the “Island of the Gods.”

However, the currency depreciation is creating a double-edged challenge for hotels and tourism operators, many of which rely heavily on imported goods and materials.

“A stronger dollar increases our production costs because many of the raw materials used by hotels are imported,” he said.

At the same time, hotel operators face increasingly intense competition, limiting their ability to aggressively raise room rates despite higher operational expenses.

Indonesia has been counting on tourism to help strengthen economic growth and foreign exchange earnings, particularly as global uncertainty pressures exports and financial markets. A weaker rupiah could temporarily support that effort by making the country one of Asia’s more affordable travel destinations for international visitors.

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