LONDON: Bali, Indonesia’s “Golden Goose”, has become a global tourism magnet because of its lush landscapes, rich culture and welcoming spirit.
Tourism has turned the island into an economic powerhouse, with millions of jobs in hospitality, transportation and retail, and a significant contribution to Indonesia’s foreign exchange earnings.
In 2023, Bali welcomed 5.27 million international tourists, representing a 144.61 per cent increase from 2022, but still below the 2019 pre-pandemic peak of 6.3 million, making up over 80 per cent of the island’s workforce.
Has Bali really succeeded with its tourism, or is it simply a victim of its own fame?
Success in tourism is often measured by rising numbers, such as more visitors, endless infrastructure and an ever-increasing contribution to the economy. If that is the measure, then yes, Bali has certainly triumphed.
But what happens when a destination becomes too complacent in its tourism success? Tourism can be a double-edged sword. Bali’s booming tourism sector has come at a steep price: the erosion of cultural authenticity, environmental degradation and deepening social inequality.
Ironically, the more successful Bali’s tourism becomes, the more exposed it is to the volatility of global travel trends and environmental crises. This paradox is exacerbated by Bali’s overwhelming reliance on tourism, leaving the island with little diversification to weather crises.
The pandemic laid bare this fragility, with tourism revenues plunging by over 75 per cent in 2020-2021, exposing the unsustainable nature of Bali’s economic model.
By putting almost all its eggs in the tourism basket, Bali has not only become vulnerable to environmental disasters but also risks losing its cultural identity.
Can we continue to celebrate this success without confronting the deeper risks it poses to the island’s future?
My concerns about the environmental and sociocultural impacts of tourism in Bali may be debated, especially given the significant economic contributions of the tourism industry.
However, the question remains: is tourism truly benefiting the local community? While it provides job opportunities and economic growth, it also comes with a hidden cost in the form of “economic leakage”, where a large portion of tourism revenue leaves the local economy.
Studies show up to 51 per cent leakage in chain-affiliated hotels, with other sectors likely contributing as well. This economic leakage, coupled with foreign ownership and the increasing dominance of foreign workers, raises questions about the fairness and sustainability of the tourism industry’s impact on Bali.
As locals are pushed into lower-paying frontline jobs, while outsiders fill managerial positions, the promised prosperity often remains out of reach for the Balinese, leaving the economy vulnerable to the forces of global capital.
Bali’s tourism industry is increasingly dominated by foreign enterprises, leading to a risk of “soft colonialism” where large international corporations control land, infrastructure and key resources. This leads to cultural appropriation and marginalises local communities, with tourism profits largely benefiting foreign investors.
This concentration of power erodes Bali’s local wisdom and causes environmental degradation, land loss and pollution.
Bali’s waste management system struggles to handle over 1,000 tonnes of daily waste from tourism.
Tourism has eroded traditional practices, turning them into merely staged performances for tourists, often lacking genuine respect, and undermining their true significance. This has intensified inequality, with locals facing higher living costs, displacement and exclusion from the economic benefits.
Rapid development of resorts and the expansion of tourism infrastructure have contributed to extensive land degradation, loss of biodiversity and pollution.
One example is the ongoing construction at Uluwatu cliffs that has caused environmental damage and legal concerns. Similarly, Ubud faces severe environmental strain: traffic congestion, depletion of groundwater, ecosystem destruction and strained wastewater systems.
Furthermore, it is heartbreaking that Bali is facing a growing drug crisis.
The island has seen a troubling rise in the illegal production and trafficking of drugs. It is particularly severe for the younger generation, who are increasingly exposed to these dangerous substances.
The tourism sector’s collapse during Covid-19 created a moment to rethink Bali’s tourism model, an opportunity that was largely squandered. Instead of taking advantage of the hiatus to implement systemic reforms, Bali’s tourism sector quickly returned to its old, flawed trajectory.
Much like software needing a reboot, Bali’s tourism should have been recalibrated with a focus on sustainability, local empowerment and environmental responsibility.
Yet, rather than addressing the root causes of the island’s challenges, Bali rushed back into “business-as-usual” mode, perpetuating the very problems that were exacerbated by the return of tourists.
Despite these challenges, I remain hopeful that Bali can transition to a more regenerative tourism model. But this will require decisive action and a commitment to long-term resilience.
Stronger law enforcement and regulation are crucial to protecting Bali’s environment and cultural heritage. Government bodies at all levels, from customary villages to central authorities, must tighten regulations on waste management, land use, cultural respect and infrastructure development, ensuring that policies are regularly updated and strictly enforced Education, empowerment and regenerative tourism are key for a more sustainable future.
Effective education programmes, developed by governments and NGOs, can raise awareness among both locals and tourists about the importance of preserving Bali’s natural and cultural resources.
Local communities, empowered through education and active participation, can manage tourism in ways that align with their values and ensure equitable distribution of benefits. Importantly, the collaboration with the youth organisation in Bali, Sekaa Teruna-Teruni, should be strengthened.
My involvement with Sekaa Teruna, called Semara Jati Teges Kawan Yangloni, in Peliatan village has shown me that Balinese youth have a shared sense of cultural preservation and environmental conservation.
This highlights the pivotal role of youth as guardians of Bali’s values, which are central to its tourism appeal. Both businesses and the government must support the continued existence of Balinese youth organisations at the village level.
Therefore, Bali’s government must ensure that all stakeholders uphold the principles protecting the island’s heritage and sustainability without bias. - The Jakarta Post/ANN
***The writer is a student at the Bartlett School of Environment, Energy and Resources, University College London.