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Estimated Capital for Starting a Surf School in Bali

• 5 minutes of reading

Bali, with its picturesque beaches and world-renowned surf spots, is a dream destination for surfers worldwide. For foreign nationals looking to turn this dream into a business venture, starting a surf school or surf camp in Bali offers exciting possibilities. However, it’s essential to understand the financial investment and regulatory requirements involved before diving in. In this blog, we’ll explore the key costs and considerations that foreign entrepreneurs should account for, from securing land to setting up a digital presence.

Table Of Contents
  1. 1. Costs Related to Location and Property
  2. 2. Business Registration and Legal Considerations
  3. 3. Equipment and Operational Setup Costs
  4. 4. Staffing and Employee Salaries
  5. 5. Marketing and Building an Online Presence
  6. Conclusion: Build Your Dream Surf School with a Clear Financial Plan

1. Costs Related to Location and Property

Choosing the right location is crucial for the success of your surf school or camp. Bali is home to famous surf-friendly beaches like Uluwatu, Canggu, and Kuta, where surf schools thrive. However, these prime locations come at a price, and it’s essential to evaluate whether leasing or purchasing land is the right choice for you.

  • Leasing Land: For most foreign nationals, leasing land is the most practical option due to restrictions on land ownership. Leasing beachfront property in popular areas such as Canggu or Uluwatu can range between IDR 15,000,000 to IDR 60,000,000 ($1,000 to $4,000) per month. Long-term leases (5-10 years) are often more economical, ensuring security for your business in a competitive market.
  • Purchasing Land: If you decide to purchase land, it’s important to note that foreign nationals cannot own land directly in Indonesia. However, you can establish ownership through an Indonesian nominee or by setting up a foreign-owned company (PT PMA). Property prices in sought-after surf spots can range from IDR 7 billion to IDR 25 billion ($500,000 to $1.7 million), depending on proximity to the beach.

Leasing is usually the more affordable route for new businesses, especially for those just starting out.

2. Business Registration and Legal Considerations

Foreign nationals who wish to establish a surf school in Bali must navigate several legal procedures. Compliance with Indonesian business regulations is essential for avoiding potential legal complications.

  • Setting up a PT PMA: To operate legally, foreign entrepreneurs must establish a PT PMA (Penanaman Modal Asing), a foreign investment company in Indonesia. Setting up a PT PMA can cost between IDR 30,000,000 to IDR 60,000,000 ($2,000 to $4,000). This includes legal consultation, registration, and government fees.
  • Licenses and Permits: Since surf schools are categorized as tourism-related businesses, you will need a TDUP (Tanda Daftar Usaha Pariwisata) or tourism business license. Acquiring this license typically costs between IDR 5,000,000 to IDR 15,000,000 ($350 to $1,000).
  • Visas and Work Permits: As a foreign business owner, you will also need a KITAS (Temporary Stay Permit) and an IMTA (Work Permit). These permits cost approximately IDR 10,000,000 to IDR 20,000,000 ($700 to $1,400) per year.

Understanding these legal aspects is crucial for avoiding delays and ensuring a smooth business launch.

3. Equipment and Operational Setup Costs

The quality of the equipment and infrastructure you provide directly impacts your customers’ experience. Investing in durable, high-quality gear ensures your surf school operates smoothly and enhances customer satisfaction.

  • Surfboards: Surfboards are an essential investment, and the average cost per board ranges from IDR 3,000,000 to IDR 10,000,000 ($200 to $700). If you plan to serve multiple clients at once, having at least 10 to 20 boards is ideal, bringing your total investment in boards to around IDR 50,000,000 to IDR 150,000,000 ($3,500 to $10,000).
  • Wetsuits and Rash Guards: In addition to surfboards, you’ll need to provide wetsuits and rash guards for your clients. Wetsuits typically cost between IDR 500,000 to IDR 1,500,000 ($35 to $100) per piece. Depending on the number of students you anticipate, the total cost could range from IDR 10,000,000 to IDR 30,000,000 ($700 to $2,100).
  • Storage and Shelter: You’ll need a place to store surfboards and other equipment, as well as shelter for students and instructors. Building simple structures like storage huts or temporary shelters can cost between IDR 50,000,000 to IDR 100,000,000 ($3,500 to $7,000).

4. Staffing and Employee Salaries

Experienced staff is critical to the success of your surf camp. You will need both surf instructors and support personnel to ensure smooth day-to-day operations.

  • Instructors: Surf instructors typically earn between IDR 3,000,000 to IDR 7,000,000 ($200 to $500) per month. Hiring multiple instructors may be necessary, particularly if you plan to offer group lessons or peak-season services.
  • Support Staff: Administrative personnel, such as booking managers or logistics staff, are essential for handling customer inquiries, scheduling, and payments. Their salaries generally range from IDR 2,000,000 to IDR 5,000,000 ($140 to $350) per month.

Recruiting and training skilled staff will help set your business apart from competitors.

5. Marketing and Building an Online Presence

With the growing demand for online bookings and digital marketing, having a strong online presence is essential for attracting both local and international customers. Investing in professional marketing can significantly enhance your surf school’s visibility.

  • Website Development: A professionally designed website that supports online bookings, is optimized for search engines, and offers a mobile-responsive interface is vital. Expect to invest between IDR 20,000,000 to IDR 50,000,000 ($1,400 to $3,500) for website development.
  • Social Media and Online Advertising: Leveraging social media platforms like Instagram, Facebook, and Google Ads will help you reach a wider audience. A monthly budget of IDR 5,000,000 to IDR 20,000,000 ($350 to $1,400) for social media management and ads will give your business the visibility it needs to thrive.

Conclusion: Build Your Dream Surf School with a Clear Financial Plan

Starting a surf school or surf camp in Bali requires thoughtful financial planning and compliance with local regulations. While the initial investment might seem substantial, proper budgeting and strategic marketing will allow your business to flourish in Bali’s thriving surf scene.

For a stronger digital presence, consider partnering with Noethera Studio. We specialize in building websites, managing social media, and creating effective SEO strategies that ensure your surf camp stands out online. Contact us today to learn how we can help take your surf school to the next level!

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