The survey conducted across 44 HORECA establishments in Bali, covering a diverse range of hotels, restaurants, bars, and catering services, revealed significant insights into the agribusiness-tourism value chain. The study highlighted a major challenge in the form of a “broken chain,” where communication and coordination between farmers, distributors, and tourism operators are lacking. Many respondents were unaware of the origins of the agricultural products they used, pointing to inefficiencies in the value chain. Despite a collaborative relationship between tourism businesses and suppliers, price often dominates purchasing decisions, overshadowing considerations such as product quality or sustainability.
The survey also identified that 100% of respondents ranked product quality as the most important factor influencing purchasing decisions, followed closely by food safety and consistency of supply. These findings underscore the need for high-quality and safe agricultural products to meet the expectations of Bali’s hospitality sector. Interestingly, the origin of the products was considered less important, with the focus remaining on quality and price. The study emphasizes the need for improved communication, transparency, and strategic pricing to strengthen the connection between smallholder farmers and Bali’s tourism industry.
