Why is Bali So Cheap? Reasons Bali Is So Affordable + Real Costs

Why is Bali so Cheap? Even with its popularity, Bali remains a very affordable place to visit. But if you’re wondering why it’s so cheap, you’ve landed on the right page. I lived on the island of Gods for six months, so I know first-hand how much it costs to visit this beautiful tropical paradise and can offer a complete review of the reasons Bali is affordable.

If you’ve done any research on Bali, you’ve probably been shocked—in a good way—at the low-cost holidays in comparison to other top-rated tropical destinations. Southeast Asia is renowned for being budget-friendly, so what makes Bali more affordable than its counterparts?

In this post, I’m uncovering how and why Bali is so cheap and budget-friendly. I’m comparing accommodation, transport, food, and activities. I’m also sharing real costs to help you budget your daily expenses for visiting or living in Bali.

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Why Is Bali So Cheap To Visit?

To answer the question, ‘Why is Bali so cheap?’, we need to examine the country to which Bali belongs: Indonesia. 

Bali Indonesia has a very low cost of living. This means that things like labour, food, transport and accommodation are much cheaper than they would be in Western Nations, where the cost of living is higher.

This is because the low cost of living reduces all costs. For example, let’s consider the price of a local meal from a warung in Bali, which is about $2 USD. Since the cost of buying fresh produce is cheap and the labour to make the meal is also low, the final product is much more affordable for consumers like us.

In general, if the production costs for a product are cheap, the final product will be more affordable, whether that’s food, accommodation, or transport. When considering the cost of living, these three factors—food, accommodation, and transport—significantly impact the overall expense of a holiday. This is why Bali is cheap to visit and live in as a tourist.

Bali’s geographical location

Bali’s geographical location also significantly influences its affordability. The island’s tropical climate allows a variety of fresh produce to be grown, reducing food costs. As an equatorial country, Indonesia can produce food all year round, eliminating the need for imports and keeping prices low.

Bali’s climate also enables the construction of open-style accommodations, which are cheaper to build and maintain, thus lowering accommodation prices. The tropical weather attracts millions of tourists, creating fierce competition among businesses that contribute to maintaining Bali’s affordability.

What else affects the cost of living in Bali?

Another factor contributing to why Bali is so cheap is the exchange rate. Bali uses the Indonesian rupiah, which is a much weaker currency compared to Western currencies. You will get around 20,000 rupiahs (IDR) to £1 GBP and approximately 16,000 IDR to $1 USD. This means your money will go a lot further!

So, to answer your question: why is Bali so cheap, it’s because Bali’s combination of low cost of living, location, and favourable conversion rates makes it cheap to visit and great value for Westerners.

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The Average Cost Of A Trip To Bali

Why is Bali so cheap to visit? Or is Bali expensive? Bali is cheap to visit for tourists, but it can also turn into an expensive holiday. It’s perfect for both budget travellers and luxury seekers, as it has a selection of both budget and high-end facilities. The average cost of a trip to Bali will massively depend on your travel style and preferences. There are options to suit everyone, from fine dining and private excursions to local eats and group tours.

Bali is certainly a destination that caters to backpackers. If you’re on a shoestring budget, you can get by on as little as $25 USD a day. You’ll need to stay in hostels and eat locally, but it’s totally doable. For those who prefer luxury travel, Bali is filled with top-end resorts, Michelin-star restaurants, and exclusive experiences.

For mid-range holiday goers, a daily budget of $120 USD is a good target, but it is still a low-cost holiday when you think about it. Keep in mind accommodation prices are half if there are two of you, so you could budget $95 USD per day instead. The table below in the next section provides a more detailed breakdown.

Daily & weekly costs for Bali

Daily costs in Bali for a mid-range holiday would average something like this:

• Accommodation: £40 per night ($50)
• Meals: £2 – £8 per meal ($3 -$10)
• Drinks: £1.50 – £10 each ($2 – $12)
• Transport: Scooter – £4 per day ($5) / Private driver – £80 per day ($100)
• Activities: £25 – £50 each ($30 – $60)

The table below shows the different levels of spending money you might need for budget and luxury expenditures in a week.

Note shopping and alcohol costs are not included.

Expenditure (7-day)	Backpackers (£/USD)	Luxury travellers (£/USD)
Accommodation	£55 / $70	£1,700 / $2,160 +
Transport	£30 / $35	£250 / $320 +
Breakfast	£14 / $18	£55 / $70 +
Lunch (incl. smoothie)	same as above	£70 / $90 +
Dinner (excl. drinks)	same as above	£105 / $135 +
Activity (per activity)	£25/ $30	£50 / $60 +
Surfing lesson (per lesson)	£9 (1 hour) / $10	£15 (2 hours) / $17
Yoga class (per lesson)	£9 / $10	same

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Why is Bali so cheap place to visit? How much money do you need for a week’s trip to Bali…

Once you know this, you can work out how much money you will need. If you’re not sure, I’ve included the average cost breakdown below to help guide you.

• Backpackers: $190
• Budget travellers: $290
• Mid-range travellers: $850
• Luxury travellers: $3,160

If you’re a Backpacker travelling on a shoestring budget, you will have to stay in hostels. Local eats are going to be your best friend, but I still suggest hiring a scooter to get around. Limit yourself to one activity a week.

• $70 hostel + $35 transport + $55 meals + $30 activity = $190

Budget travellers can increase accommodation options, but I would stick to a couple of cheaper group activities, like walking tours, to keep costs down. You’ll be able to throw in a Western meal here and there and a few drinks.

• $140 hotel + $35 transport + $95 meals + $60 activities = $290

As mid-range travellers, you’ll have more freedom to partake in activities and dine at Western restaurants; however, combine this with local eats and choose 3* hotels to stay within budget.

• $350 hotel + $135 transport + $185 meals + $180 activities = $850

Luxury travellers have a fantastic opportunity to enjoy Bali’s top-end resorts and fine dining, use a private driver and have top-rated experiences in a truly lavish manner. The sky is the limit, but for the sake of continuity.

• $2,160 hotel + $300 transport + $400 meals + $300 activities = $3160

The most expensive part of the journey will be your flights over to Bali. Luckily, there is an international airport in the capital, so it’s possible to get direct flights from cities like London, Sydney and Dubai. Budget between $800 – $1200 + for a roundtrip.

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Reasons Behind The Low Cost Of Travelling To Bali

I hope the information above has helped you understand why Bali is so cheap and has given you a starting point for planning your holiday budget.

Below, I’ll go over the main factors—accommodation, food & drink, attractions, and transport—that impact the cost of living in Bali. I’ll explain why and how these factors affect prices and what they mean for you as a tourist.

Why accommodation in Bali is so cheap

You might think accommodation in Bali is expensive, but it blows my mind every time. Bali hotels are super cheap in comparison to what you would get for your money in, for example, France (why France? It just came to my head, lol) or very expensive should you choose a luxury villa. But even “very expensive” in Bali is nowhere close to “very expensive” in places like Europe.

Most hotels in Bali offer a ‘breakfast included’ deal, which is essentially a free breakfast. This saves even more money. Food is not very expensive, but every little bit helps, especially when it comes to budget travel!

So, why are Bali hotels so cheap? It goes back to the cost of living and low labour costs; purchasing land in Bali is also great value. It takes a lot less money to build, maintain, and manage the hotels, and this is reflected in the price. 

Hotel costs in Bali

Accommodation is usually the most expensive part of a holiday, but Bali is a fantastic place if you’re travelling on a budget as you will find cheap accommodation. You can find hostels for as little as $5 a night in Bali, although personally, I would up your budget to around $10 for a more comfortable stay – this is still ridiculously cheap accommodation.

It’s also very possible to stay in total luxury without going bankrupt. A mid-range budget of $50 a day is going to get you a beautiful room. However, luxury resorts and villas can go as high as a staggering $250+ a night!

There are also homestays and guesthouses worth considering, which are similar in style and have an intimate feel. Homestays are generally more affordable, averaging $10-$20 per night, and you’ll get to experience a traditional stay with a family. Guesthouses tend to offer a boutique stay with more amenities, but prices increase slightly to about $50 per night.

Some of my favourite hotels in Bali:

• Blossom Eco Luxe Villas by Ekosistem – £280/$355 a night
• Frangipani House & Spa – £45/$55 a night
• Wina Ubud B&B – £20/$25 a night (best budget-friendly hotel in Ubud)

Best Hotels In Bali

I lived in Bali for six months and found one of the best accommodations for what we paid – Frangipani House & Spa. We were based for five months in Canggu, a hip, laid-back neighbourhood, and the other month was spent on a road trip around the island!

• Best Hotel in Canggu – The Calmtree Bungalows
• Best Hotel in Ubud – Bubu Mesari Ubud Villa
• Best Hotel in Nusa Lembongan – The Shacks at Sandy Bay
• Best Beach Hotel – Palm Garden Amed Beach & Spa Resort Bali
• Best Digital Nomad Hostel – TRIBAL Coworking Bali

Why is Bali so cheap to eat and drink…or is it?

The cheapest way to eat and drink in Bali is to head to the warungs, which are local Indonesian restaurants usually run by families. These canteen-style eateries offer very filling and extremely cheap food and drinks for about £2/$2.50.

Aside from local eats, Bali has seen a lot of Western influence, leading to the emergence of high-end restaurants, cafes, and bars. These establishments can get pricey, especially for budget travellers. So, if you’re trying to save money, stick to the warungs.

One of the biggest budget busters in Bali is drinks. While local beers are affordable, other alcoholic beverages can quickly increase your expenses. Western-style bars serving imported alcohol often charge premium prices. Although it’s not as expensive as back home, alcohol is relatively pricey compared to the cost of food in Bali.

So, is Bali cheap for eating and drinking? Overall, it’s possible to eat and drink on a budget if you stick to local meals. However, if you enjoy dining at restaurants and sipping pina coladas at sunset, you’ll need to allocate more money for your trip.

FOOD COSTS IN BALI

How cheap is Bali? Luckily, before I arrived, a friend of mine had already been living on the island of Gods for a while, so I was able to put together a budget with her help.

However, I always liked variety, so I mixed meals from the local warungs with some fancier restaurants and cooked at home.

If you’re savvy, it’s super easy to afford to eat in Bali:

• Warungs – You’ll be able to grab a filling meal for $2 – $5
• Street food – From grilled meats to fired banana and bakso soup for less than $1
• Fresh coconut – More expensive in restaurants; head to the beach for $5
• Coffee – Try the delicious local Balinese coffee for $2
• Western dishes – The selection in Bali is huge, starting from $10 – $15+
• Bintang beer – The local beers start at $2
• Cocktails – A refreshing cocktail will set you back $8 to $12+

COST SAVING TIPS

• Buy produce from the markets and cook at your hotel at least once a day.
• Buy the local beers, known as ‘Bintang.’
• Stay away from pricey cocktails.
• Eat meals from the warungs – these are usually very filling and delicious.
• Choose accommodation with a “breakfast included” deal.
• Find the bars with Happy Hour; also, check the bars’ Instagram pages for deals.

I got into a routine of having brunch after a yoga class in the mornings with friends and eating dinner at the warungs in the evening or opting to cook; I’d throw in a smoothie as well but rarely consume alcohol —this is how I didn’t break my Bali budget!

Why transport is affordable in Bali

Transport is very affordable in Bali, and it’s completely possible to catch a taxi every day if you want to explore without going over budget. We rented scooters from the start, which is what I recommend. Most people in Bali rent scooters to get around, and it’s the most convenient and cheapest way to explore the island of Gods.

I noticed that walking isn’t as popular in Bali as it is in other destinations I’ve visited, possibly because there is a lack of pavement. However, you can walk around as well—just stay out of the mid-day heat.

Overall, transport in Bali is cheap due to the low fuel costs and inexpensive labour. Additionally, the abundance of affordable options, such as scooter rentals and taxis, contribute to the general affordability of getting around the island.

TRANSPORT COSTS IN BALI

Depending on how long you’re spending in Bali and which activities you plan on doing, there are various transport options. For long-term stays, scooters are the best option. Instead of using the local Bluebird taxi, opt for Grab or Gojek, which works similarly to Uber.

• Scooter rental – Daily rental costs start from $5, but if you’re after something nicer, it’s about $10. If you’re staying long-term, you can nab a great monthly deal at $50.
• Taxi – I preferred Grab/Gojek, which are ride-sharing transport. You can choose a car or bike. The bikes can be unsafe but cheaper. Also, these are super affordable and avoid any issues that could arise with the metered taxis.
• Private driver: A full-day hire costs about $100 (10 hours), and a half-day hire costs about $70 (6 hours).
• Public bus – The routes go between the popular towns and average $1-5 per journey; however, they aren’t comfortable or reliable and take a long time.
• Boat – To get around the nearby islands like Nusa Lembongan, Lombok and the Gili islands, you’ll need to take a boat. Options include the local ferries or private speedboats, with prices varying but a budget of around $15 per trip for the speedboats.

Activity costs in Bali

Bali has a huge array of attractions that you’ll love. However, despite its overall affordability, many activities and excursions can be surprisingly pricey. I’m not saying this to complain but to make you aware that you’ll need to budget accordingly—I’m all for growth and development!

To help you budget, below are a selection of popular activities.

• Famous Balinese dances – The Legong Ramayana Ballet is super popular and costs about £5/$7 a ticket.
• Ubud tours – The waterfall, rice terraces and monkey forest private tour, for example, will cost about £15/$20 each.
• Adventure activities – Such as ATV quad biking, start from £20/$25 each.
• Volcano hikes – The popular sunrise hike to the summit of Mount Batur starts from £20/$25 each.
• Bali/Nusa Penida – The famous East & West highlights full-day tour is £25/$30 each.
• Artistry classes – You can join a silver-making class for £25/$30
• Temple tours – The Uluwatu Temple tour with Kecak Dance is popular, starting from £26/$33; however, you can also visit free temples.
• Unique tours – The full-day Instagram highlights tour is £35/$45
• Premium tours – Swimming with Manta Rays in Nusa Penida is one of the best experiences you can have in Bali, but it costs about £57/$70 each.

Why Bali offers an affordable getaway

Bali truly is an affordable getaway, thanks to Indonesia’s lower cost of living and weak currency. While this isn’t ideal for the local population, it means that Bali offers incredible value to us tourists.

The island is simply magical, offering a stunning tropical playground with rainforests, rugged landscapes, and palm-lined beaches. It’s one of the rare places where you can enjoy bargain prices and top-notch amenities, allowing you to live the dream without breaking the bank.

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Is Bali Expensive or Cheap To Live?

Bali can be so cheap to live in. I lived in Bali for six months and really did it on a budget, managing to keep costs within £650 / $800 per month.

Living in Bali can be done for less or more, depending on your lifestyle, but I enjoyed surfing lessons and yoga classes and exploring the island as much as possible. I also had at least one meal out a day, usually brunch, but cooked the rest at home to help keep costs down.

I also took full advantage of the food deals and buffets. A great place to check out food deals is a restaurant’s Instagram page. Many places offer deals such as Happy Hour discounts and 2-4-1 cocktails. In Ubud, I used to love visiting Sawobali, which offered an all-you-can-eat vegan buffet for 50,000 idr. It was an incredible deal, and the food was unbeatable.

I enjoyed a few nights out. However, I want to stress that I didn’t consume much alcohol, as this would have made things much more expensive. Instead, I enjoyed taking nature walks like the famous one at Campuhan Ridge and visiting rice fields like the hidden Kajeng Rice Fields, which are free. 

I worked it out that it would cost around £300 – £500 ($363 – $605) per month more if I had been drinking – alcohol is expensive in Bali! 

Bali’s cost of living

If you’re considering moving to Bali and want to know the cost of living and if you can afford to live there on a budget, I’ve put together a table showing the typical costs of living there.

These costs reflect our own experience of living in Bali.

Activity	Cost of living in Bali – what we spent
Accommodation (per month)	£187 (this has now increased to £240) $290
Scooter rent (per month)	£40 / $50
Petrol (full tank)	£2.50 / $3
Laundry (per kilo)	£1 / $1.2
Yoga (one class)	£7.50 / $9
Surfing (one lesson)	£8 / $10
Food (typical 7-day shop)	£20 / $25
Taxi (1-hour ride)	£13 / $16
Coffee	£1.50 / $2
Dinner	£10 / $13
Nights out (£5 cocktails)	£30 / $38

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Tips For Saving Money In Bali

If you are planning on visiting or living in Bali on a budget, I’ve written a money-saving article here; however, below are a handful of cost-saving tips to ensure you have an affordable trip to Bali:

• Research your trip, hot spots and attractions you want to visit before you go to find the best deals and avoid tourist traps.
• Choose accommodation wisely to balance comfort and cost.
• Enjoy beach days as a cost-free way to relax and soak up the sun.
• Choose group tours over private options as they are more affordable, and visit the free attractions like the temples.
• Stick to local restaurants for authentic, cheap meals, including street food, to experience local cuisine at a fraction of the price.
• Embrace local markets for fresh, inexpensive produce and souvenirs.
• Avoid pricey cocktails and opt for local beverages instead.
• Rent a scooter to explore the island cheaply and independently.
• Download the Grab or Gojek app for affordable rides.
• Take your water bottle to stay hydrated, and avoid buying bottled water.

Why are prices increasing in Bali?

Prices in Bali are going up for a few reasons. First, Bali’s popularity as a tourist hotspot means more people are visiting, driving up demand for everything from hotels to restaurants and activities, which naturally leads to higher prices.

Additionally, inflation is at play here, like it is in many places, causing the cost of goods and services to increase over time. Infrastructure improvements aimed at making Bali more accessible and enjoyable for tourists also contribute—they’re great for the island, but they come with a cost.

Together, these factors are driving the rising prices in Bali, but it still remains cheaper than similar destinations such as Hawaii, the Maldives and the Caribbean.

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Why Is Bali So Cheap? Is It Because It’s Dangerous To Visit?

Bali is not a dangerous island. Its culture is very warm and kind, and most of the local people follow the Hindu religion. We found the local Balinese people to be very friendly and helpful. 

That being said, as with any popular holiday destination, there is always the chance of petty crime, mostly bags being stolen from the beach and restaurants, etc. It’s wise to keep an eye on your belongings. I wouldn’t leave anything valuable lying around. Another good thing to keep in mind is to check your bill, as sometimes things get added on! 

In the case of more serious crime, Bali has a low crime rate and feels very safe. The locals are accustomed to tourists and speak English as a third language. It’s very easy to get around Bali, and most locals want to engage in conversation. 

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The Negative Impacts Of Low-Cost Tourism In Bali

As amazing as it is that we have a very cheap place to holiday, low-cost tourism in Bali has some negative aspects. For example, the environmental impact tourism is having on Bali is significant. Low-cost tourism often encourages wasteful practices, like single-use plastics and unchecked development, which harm the island’s natural beauty.

The demand for cheap services can sometimes result in low wages for local tourism industry workers. This can contribute to economic disparities in Bali, with many struggling to make a decent living.

Overcrowding is a huge issue in Bali at the moment. This not only diminishes the experience for you but can also put stress on the local infrastructure and resources.

The surge in low-cost tourism has also led to increased traffic congestion and pollution in some areas of Bali. This not only affects the quality of life for locals but also impacts the overall attractiveness of the island.

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Why is Bali Worth Visiting?

I’ve dedicated an entire article to this topic, but my honest opinion remains: Bali is still worth visiting. However, it’s important to weigh the pros and cons and understand that you won’t have the island all to yourself.

Southern Bali has become heavily populated and urbanized, leading to increased prices and pollution, which are significant drawbacks. However, this represents only a portion of the island, and these areas are always fun and exciting places to visit nonetheless.

If you prefer a more traditional escape overflowing with raw beauty, authentic areas in more secluded parts of Bali are still waiting to be discovered. This is why I continue to believe that Bali is worth a visit.

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Essential Resources For Bali

Is it your first time visiting Bali? We’ve written lots of useful posts to help you plan your trip. You can check them all out on our Bali Page here. 

Below are some of our most popular articles:

• Amed in eastern Bali offered a fantastic array of activities.
• For an epic hot springs experience, visit Banjar Hot Springs.
• Uluwatu in the south was also a highlight of my trip.
• Discover if Penglipuran Village is worth a visit.
• Head north to Pemuteran for stunning coral snorkelling.
• Learn why Aling Aling was our favourite waterfall in Bali.
• Lastly, consider a visit to Komodo Island near Flores.

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Final Thoughts | Why Is Bali So Cheap?

As you can see, Bali offers affordable options for holidays and living expenses. Even if you’re planning a luxurious vacation, it’s generally more cost-effective than other popular destinations.

So, why is Bali so cheap? Ultimately, it comes down to the cheaper labour costs, geographical location and exchange rates.

It’s an excellent island getaway that won’t break the bank. The most significant expense will likely be your flight to Bali! To save money, opt for local restaurants, limit alcohol consumption, choose accommodations carefully, and shop at local markets.