When the Ability to Shop is Spent
Bali Residents’ Purchasing Power Hit Hard by COVID-19 and Tourism Downturn
The Purchasing power of people in Bali is adversely affected by the unprecedented downturn in Bali’s tourism industry occasioned by the COVID-19 Pandemic. The decline in spending has reduced sales revenues reported from local markets, retail outlets, and convenience stores.
Quoted in NusaBali.com, I Wayan Kamiawan, a trader at the Kreneng Market in Denpasar, Bali said on Tuesday, March 10, 2020: “It is as though the coronavirus has weakened tourism. Many workers have been sent home from their place of employment.”
While Kamiawan did not specify the amount that sales have decreased, he did say that the sales of all commodities and basic necessities have suffered declines.
Other traders at the Kreneng Market echoed the trader’s observations. All complained that their sales have decreased. While many enjoyed an increase in sales on the recent eves of the Galungan and Kuningan Holidays, sales markedly reduced after that.
Separately, the council chairman of the Bali chapter of the Indonesian Retailers (Aprindo), AA Agung Agra Putra, confirmed that sales have decreased at retail outlets in connection with the weakness of Bali’s tourism sector and the COVID-19 Pandemic. Putra pointed to the weakening purchasing power of the public as the root cause.
Putra said that the reduced purchasing power of the public, however, has automatically precluded the possibility of panic buying seen in other places worldwide.