Governor Koster Opens PHRI Bali’s 15th Regional Congress: Collaboration, Adaptation, and Innovation to Revitalize Tourism

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DENPASAR Bali Governor Wayan Koster officially opened the 15th Regional Congress (MUSDA XV) of the Indonesian Hotel and Restaurant Association (PHRI) Bali Provincial Board (BPD) 2025, held alongside a seminar and exhibition themed “PHRI Bali for Tourism Revival: Collaboration, Adaptation, and Innovation.” The event took place at Prime Plaza Hotel Sanur on Wednesday (Dec 3).

In his remarks, Governor Koster emphasized that tourism remains a highly strategic sector for Bali’s economy, highlighted by strong macroeconomic indicators that show significant recovery and growth.

Bali’s economic growth has reached 5.48%, rising to 5.88% in the third quarter. The poverty rate has dropped to 3.7%, and the unemployment rate remains exceptionally low at 1.7%. Bali also contributes 54.5% to Indonesia’s total tourism sector, welcoming 6.3 million visitors.

The Governor reminded tourism stakeholders not to work in silos, noting that tourism challenges are becoming increasingly complex and require decisive, fast, and coordinated action.

“I will be firm in my second term in addressing the challenges facing tourism. We can no longer work partially—everyone must be united and collaborative,” he stressed.

He also underlined the importance of preserving Bali’s culture-based tourism identity.

“We must be grateful for Bali’s tourism. Never neglect the cultural tourism that forms the soul of Bali. We must safeguard it with care,” he said.

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On spatial planning and sustainability, the Governor reaffirmed strict policies controlling land conversion, ensuring no productive land—particularly rice fields—is used for new hotel development.

Environmental issues such as waste management and traffic congestion were also highlighted. The Governor called on hotels, restaurants, and businesses to actively participate in waste handling and support transportation management to reduce congestion in tourism areas.

He further urged PHRI to remain united and lead efforts to ensure Bali’s tourism sustainability.

“Tourism cannot be managed with ego. PHRI must be at the forefront in ensuring sustainable tourism,” he stated.

MUSDA XV is expected to strengthen cross-sector collaboration, enhance adaptation to global shifts, and foster innovation to maintain Bali’s competitiveness as a world-class destination. The Governor also expressed appreciation for PHRI members who have consistently supported Bali’s tourism development.

The Bali Provincial Government and PHRI hope this congress will produce strategic policies and programs that address future tourism challenges while ensuring Bali remains competitive, sustainable, and resilient.

Staff Expert to the Minister of Tourism and Creative Economy, Masruroh, noted that Bali contributes around 50% of Indonesia’s international tourist arrivals. She credited PHRI Bali for maintaining high standards in services, accommodation, and destination quality. The MUSDA theme, she said, is highly relevant to strengthening Indonesia’s tourism competitiveness amid intensifying global competition.

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Masruroh also addressed the growing dynamics of the sharing economy—while it expands accommodation options, it also requires fair regulation to ensure tourism revenue returns to the country through proper licensing and tax compliance.

In line with the national sustainable tourism agenda under the Presidential Regulation on Sustainable Tourism, she encouraged PHRI and stakeholders to jointly address environmental issues, develop national tourism management guidelines, draft a sustainability roadmap, strengthen human resources, and accelerate digital transformation in the hospitality sector.

Meanwhile, PHRI National Chairman Hariyadi B.S. Sukamdani expressed deep appreciation for PHRI Bali, which he referred to as the backbone of PHRI nationwide.

He noted that Bali plays a significant role in promoting Indonesian tourism, with the island’s reputation strengthening Indonesia’s image globally. Most licensed accommodation businesses in Bali are owned by local and national entrepreneurs, while many unlicensed units are operated by foreign entities through sharing-economy platforms—an issue that requires collective attention due to its implications on fair competition, legality, and regional tax revenue.

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Hariyadi echoed the importance of sustainable tourism development and alignment with national policies. While the sharing economy cannot be avoided, he emphasized the need for regulation to ensure fair economic benefits through proper permits and tax compliance.

He also expressed support for developing nationwide tourism management guidelines, sustainability roadmaps, human resource enhancement, and accelerated digitalization in hospitality services. PHRI, he affirmed, will continue to support Bali as Indonesia’s premier tourism hub and a driver of the national hospitality sector.

PHRI Bali Chairman Tjokorda Oka Artha Ardhana Sukawati (Tjok Ace) expressed gratitude for the successful convening of MUSDA XV and extended solidarity to communities in Sumatra and other regions affected by recent disasters. He emphasized that organizational strength lies not only in its programs but also in its solidarity, compassion, and unity.

He noted that this year’s MUSDA serves as a strategic momentum to evaluate organizational performance, formulate adaptive strategies to global dynamics, strengthen PHRI’s role as a government partner, and enhance internal consolidation.

Amid evolving tourism trends, spatial planning challenges, global competition, and threats from disasters and climate change, PHRI Bali is expected to remain steadfast in protecting Bali’s environment and culture in line with the Nangun Sat Kerthi Loka Bali philosophy.***

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