Benny Siswanto who heads the Bank Indonesia office for Bali and Nusa Tenggara is projecting economic growth for 2014 at between 6% and 6.14%.
As reported by Bali Daily (The Jakarta Post), Siswanto insists such rates of growth are achievable despite extreme weather conditions, looming hikes in electrical rates and the uncertainty in a year filled with legislative and presidential elections.
Growth will come at certain costs: Expect food, goods and services to increase in 2014 against a backdrop of political rivalry.
“Hotel room rates, among others, will increase sharply, affecting operational costs and people’s buying power,” said Siswanto.
At the same time, the Bank Indonesia officials foresee the election process as providing stimulus to creative industries, publishing, printing, and clothing companies.
Meanwhile, large government-funded major infrastructure projects will continue in Bali, which, in turn, should attract more private investment. Siswanto sees overall investment declining in Bali in 2013, but will still remain substantial.
In 2013 Bali saw large-scale infrastructure investment in the form of the Island’s first toll road, a total renovation of Bali Ngurah Rai Airport and the completion of an underpass at the Dewa Ruci monument.
Siswanto also sees an improving global economy as helping to boost Bali’s fortunes. “The economic conditions of export destinations and major tourism markets for Bali are now improving. Some of them have passed the critical stage, which is a blessing for Bali,” Siswanto explained.
Domestically, Indonesia’s growing middle-class are visiting Bali on holiday with 6.5 million domestic visitors expected to visit in 2014, visitors who will in turn purchase gifts and handicrafts while staying in the Island’s hotels.
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