economic effects of tourism in bali

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How Bali economy was impacted by lack of tourists during Covid

The Covid pandemic decimated the global economy — but few places struggled as badly as our beloved Bali, with locals fighting to survive.

Major call for infamous Bali monkeys

Bali’s surprise move after influx of tourists

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It’s been a rough two years for most of the world with the coronavirus pandemic decimating global economies and leaving nations reliant on tourism floundering.

And few have been impacted as heavily as our beloved Bali — one of Australia’s most favourite places to escape to pre-pandemic.

Before the pandemic brought international travel to a grinding halt and countries slammed their borders shut, more than 1.3 million Australians descended on Bali in 2019, injecting billions into the local economy.

But two years later, the pandemic has had a devastating effect on the Indonesian island, with local businesses and tourism operators telling news.com.au they had faced a relentless battle to survive.

The once-bustling island is a shell of what it once was.

Seminyak’s busy maze of streets, once filled with boutiques and shop owners joyfully bartering for a sale, are dead and devoid of cars and people.

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Shop windows are boarded up and other businesses have been abandoned altogether.

“For Lease” signs are pinned to most shopfronts and the beachside hotel pools, once teeming with sunburnt Aussies partying the days away, are empty.

A local jewellery shop employee, whose shop was the only one open in the street, said the past two years had been “not good”.

“We barely see anybody, it’s so quiet. Nothing is open. Most of the people I know haven’t been able to work. We are one of the only places that managed to stay open,” she said.

Local tour guide Tree told news.com.au she had spent the past two years doing what she could to survive by making snacks and selling them to local shops.

“Please, please come back to Bali,” she said.

“We are ready for Aussies.”

Tree also urged Australians to be fair with the Balinese people when they return.

“Before the pandemic, the shops would charge maybe four or five times the price but now they’re not. They know they need to build that trust and relationship back with the Aussies so you can barter a little bit but please don’t do it too much,” she said.

One potential positive to come out of the pandemic was the drop in traffic jams on the island.

Tree said streets that used to take 30 to 45 minutes to pass through instead were taking five minutes.

“But this is just because all the shops are closed,” she said. “We hope everything will come back the way it was before.”

Other local tourism operators returned to agriculture to survive the pandemic by farming chickens, pigs, vegetables and fruit for money.

Andy, a local hat seller who has spent more than a decade selling hats on Seminyak Beach, said he had to turn to friends in Australia for help.

“My god, it has been really, really bad,” he said.

“It has been very hard on me and my family, my wife and my two kids.”

Andy asked a friend from Australia to send him small amounts of money.

“So we could eat,” he said.

Some places have managed to weather the storm by focusing on local events and local tourists.

The Westin at Nusa Dua, a hotel set in a popular beach enclave on Bali, was booked out for the rest of the month thanks to a local motorbike event.

And some areas of Bali are still thriving — especially the region of Canggu, which is where most Aussie expats call home and run their businesses.

Jetstar also has high hopes after it dropped a $99 flight sale to Bali earlier this month and sold more than 40,000 fares in a single day.

The budget airline restarted direct flights between Australia and Bali’s Denpasar International Airport on March 15.

Pre-Covid, Jetstar operated up to 85 return flights a week to Bali.

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The airline will start slow this month, operating three flights a week from Melbourne before ramping up their scheduling in the lead-up to Easter.

Bali flights from Sydney and Perth are scheduled to recommence in early April, with flights from Brisbane, Adelaide, Cairns and the Gold Coast scheduled for May.

This journalist was in Bali as a guest of Jetstar.

The managers of a renowned Bali tourist attraction have made a major call on the site’s mischievous resident long-tailed monkeys.

From its stunning natural beauty and affordability it’s no wonder why Aussies flock to the island – and now officials want to manage it differently.

It’s not something Indonesia is really known for, but it’s something Aussies need to add to their list the next time they’re in Bali.

How Bali could build a better kind of tourism after the pandemic

Senior Lecturer in Tourism and Leisure, Bournemouth University

Professor of Marine Biology and Conservation, Bournemouth University

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Rick Stafford receives research funding from Interreg Europe and the Earthwatch Foundation

Jaeyeon Choe does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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COVID-19 has hit tourism-reliant destinations hard . The Indonesian island of Bali, for example, where 70% of the population depend on tourism , has seen extensive job and income losses since it closed its borders in April.

The economic impact so far has been greater than that of the Bali bombings of 2002, with losses of around 9.7 trillion rupiah (about £551.3 million) a month.

In the past, the island’s image as a peaceful paradise with a rich cultural and religious heritage has made it a highly resilient tourist destination. Bali recovered swiftly in the wake of past crises, both natural and man made, including the Gulf War (1990), a cholera outbreak (1995), Sars (2003) and bird flu (2007).

But without significant investment and diversification, there are widespread concerns that this crisis could be different .

A different approach may now be needed to save the tourism industry – and to make sure its benefits are more evenly spread. We believe that now is the time to adjust the model in Bali away from surf, parties, and yoga towards rural villages with high poverty rates across the island (especially the underdeveloped north-east).

To do this, government support is required to build small-scale tourism that will provide new livelihoods. This might include everything from dolphin watching and snorkelling trips, to food tourism and “experience tourism” focused on traditional fishing and farming.

Read more: African tourism has been put on ice by coronavirus – here's how some countries are reviving it

That support does not necessarily need to be in the form of cash. When we interviewed small-business representatives in Bali last year, they called not for financial subsidies, but for marketing training and access to tourism-research data.

As one entrepreneur told us: “Many local creative businesses are managed as informal family businesses. They lack knowledge in professional management and marketing skills.”

He also spoke of the need for improved collaboration between IT experts, business consultants, local universities and policymakers.

Yet there are important risks to consider when attempting to build a new kind of tourism. “Authentic” experiences can often be manufactured by large businesses, preventing regional economic development (other than occasional low-paid work) in the most deprived areas.

And without investment in tourist infrastructure, it would be too easy for tourists to prefer the manufactured version over the true “authenticity” on offer from local communities. Carefully considered investment, however, could lead to sustainable development.

According to Dr Luh Putu Mahyuni, a sustainable business consultant and economist at Undiknas University: “The pandemic provides a wake up call for Bali to foster […] new types of tourism such as gastronomic tourism.”

She told a webinar we hosted in May: “The tourism sector needs to develop products with other sectors so as to create a more resilient and sustainable economy.”

To boost that economy, the island should also consider a tourist tax, while reducing taxes on small-scale home-stays, and better regulating the presence of Airbnb. It also needs to restrict foreign ownership of property, limit destruction of viable farmland and limit business sizes in the south of the island.

An island of opportunity

Notwithstanding all the devastation it has caused, COVID-19 has given the world an opportunity to pause and reflect on how things may change in its aftermath . The tourism industry in Bali (and many other places) is no exception.

For tourism is often seen as a solution to all kinds of problems, from economics to conservation. But as our research has shown, unless tourist money is kept in the local community, the benefits do not materialise .

And besides the major financial concerns on Bali, and the need for a tourism-led recovery, the authorities must also face up to deeply entrenched levels of structural inequality. Poverty, homelessness and dispossession existed long before the pandemic.

The island must learn from what happened 18 years ago, when the bombings led to job losses and increased rates of depression, alcoholism and crime . And we hope that Bali can use the current crisis as an opportunity to look at the causes of such social problems, rather than the symptoms . To move on and build a more resilient island, where responsible tourism plays a major role in alleviating poverty.

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Gross domestic regional product (GDRP) per capita in Bali, Indonesia from 2016 to 2022 (in million Indonesian rupiah)

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Agricultural production

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Fisheries production in Bali, Indonesia from 2013 to 2022 (in 1,000 metric tons)

Pork production Indonesia 2023, by province

Pork production in Indonesia in 2023, by province (in metric tons)

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• Edition 142: Oct-Dec 2020
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Bali’s pandemic, its impacts and legacies

Jemma purdey.

In February 2022, Bali’s international border reopened after almost two years. Long-awaited and warmly welcomed by most on the island whose livelihoods are so deeply connected to the dominant tourism industry, there is also a level of concern and trepidation. The sudden and prolonged halt to an ever-increasing flow of international visitors into Bali, whilst devastating for tourism and the economy at large, has forced many to reflect upon and rethink the over-dependency on this sector and its social and environmental impacts.

Compared to its neighbouring island Java, Bali has to date avoided a large-scale COVID-19 health crisis due to its high vaccination rates and adherence to social-distancing and other health protections. However, the pandemic induced international border closures and restrictions on mobility meant that Bali’s economy was most likely the hit hardest in all of Indonesia. The raw numbers are stark and extraordinary. In 2019 Bali welcomed over six million international visitors, in 2020 this number was just over one million, and in 2021 only 45 international visitors arrived directly in to Bali. It is estimated that prior to the pandemic around 70 per cent of the economy was linked to tourism and over half of all jobs.

As Anton Muhajir details in his article in this edition, when compared to past crises, including the 2002 Bali Bombings and 2017 Mt Agung eruption, the economic and social impact of the pandemic has been unprecedented - a prolonged period of being closed off from a global market upon which Bali had become so intrinsically, if not totally, connected and dependent.

All of our contributors to this edition lived in Bali during the pandemic. We invited them to reflect on their experiences, on how they, their neighbours and organisations have faced the challenges brought by the economic and health crisis; how communities have remained connected and individuals have found a way through.

Nicodemus Freddy Hadiyanto puts faces to the numbers, sharing stories from his neighbours and friends who, like so many, found themselves out of work and with no idea when the tourists would return. Whilst some are looking forward to Bali’s reopening and returning to their pre-pandemic employment, many others, through necessity, grit and ingenuity have found new paths and new livelihoods away from tourism and do not expect to go back.

In their essays Paul Walters and Suzy Hutomo reveal how the pandemic has exposed Bali’s complex predicament – long known, but until this crisis perhaps conveniently overlooked – whereby the very beauty and relaxed living for which Bali is famous is under constant threat due to the ever-larger numbers of tourists who come to experience it. As the wonderful photos from Syamsul Sofian accompanying Hutomo’s essay show us, in their absence nature has reclaimed parts of the island and wildlife has returned.

Likewise, Sue Useem’s article on Bali’s much-loved dogs reminds us of the close relationship between human and animal in Balinese culture. Pandemic restrictions created challenges for organisations caring for these dogs, but re-connecting with their local communities during this time has given rise to youth-led grassroots animal welfare efforts that offer much hope for the dogs' future wellbeing.

Fransiska Prihadi and Iko Amadeus and Ni Nyoman Clara Listya Dewi share their experiences with organisations dedicated to helping locals maintain connections across their fractured communities. Their efforts to bring people together digitally and in COVID-safe ways in-person focused on warding off isolation and fear born of a lack of information about the virus, and the importance of continuing to foster cultural activity.

Across the articles in this edition the role of local and national government is ever-present, either as an enforcer of rules, public health protector or aid-giver, but in all cases with varying levels of efficacy and relevance. The stories told here demonstrate the centrality of community-led resilience and ingenuity in response to Bali’s pandemic crisis.

The pandemic has forced the people of Bali – like all of us – to reflect on what is important. To take stock. As the island begins to welcome visitors back in the coming months and years it remains to be seen what has been learnt from this period of pause. Will Bali return to the way it was before March 2020? We join our contributor Hadiyanto in posing the question, ‘Bali, where are you heading?’

Jemma Purdey is commissioning editor of Inside Indonesia.

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The tourism boom in bali: is it harming prospects for long-term economic growth.

Abstract Tourism now dominates the regional economy of Bali, and its direct economic benefits are demonstrably large. However, Bali’s tourism focused development strategy has been criticized for some of its social, cultural and environmental effects, and for potentially hampering sustainable long-term growth through ‘Dutch disease’ effects of tourism boom on other more dynamic tradable sectors, particularly manufacturing. In this paper, we discuss the economic effects of tourism on overall growth, structural change, employment and wages, household and spatial distributional effects, and potential for technological change and longer-term growth. We show that tourism has promoted a complex web of interactions with other industries, and contributed to rapid structural change, skills development and the widespread dissemination and application of information technology. We contend that the application of the conventional Dutch disease model can be misleading in assessing the economic impact of tourist growth in Bali. It is important to recognize that (a) Bali is a regional economy within the much larger national economy of Indonesia, with high levels of integration in both factor (including labour) and product markets, and (b) tourism is a very dynamic export industry, operating in a highly competitive and rapidly changing international market, and requiring increasingly sophisticated managerial and entrepreneurial skills. While many of the negative socio-cultural and environmental effects are serious and must be addressed through appropriate regulatory regimes, they are not very different from effects seen in other economies undergoing rapid growth. Our overall assessment is that tourism, based on Bali’s natural, cultural and economic endowments, is a viable alternative to labour-intensive industrialization and demonstrates that ‘services based growth strategy’ can be quite appropriate in some circumstances.

Key words: Bali, Indonesia, growth, structural change, tourism, Dutch disease

JEL Codes: F15, J62, 014, 015, 018

Updated:   3 June 2024 / Responsible Officer:   Crawford Engagement / Page Contact:   CAP Web Team

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The impacts of tourism in bali.

I’ve got a love-hate relationship with Bali. On one hand, it’s a beautiful island with amazing scenery, lovely locals and an intriguing Hindu culture. On the other, it’s suffocatingly touristy, can feel very inauthentic and has some real problems that are arguably worsened by mass tourism.

Bali has spectacular sunsets and gorgeous views, but it is arguable that a) you’ll be sharing your experience with thousands of other tourists and b) that the way tourism in Bali is set up inadvertedly negatively impacts people there, even if it is not meant to.

Now, I’m not against tourists in Bali – I was a tourist in Bali, after all. I’m against the way tourism in Bali is executed, which has caused a beautiful island to become a tourist trap. After spending five weeks in Bali, I saw some amazing sights. I climbed up Mount Batur, snorkeled in Nusa Penida and explored the rice fields of Ubud and Canggu.

However, I still felt kind of uncomfortable there. Because a lot of the time, you can’t escape the mass tourism of the island, and as a responsible traveler , it left me thinking about the real impact that I had by being there.

The Positive Impacts of Tourism in Bali

Tourism has brought a lot more jobs to the island, many of which are paid better than other opportunities. Balinese employment is now varied, with some people opting to own guesthouses and others doing their own tours of the island. Generally, most Balinese people I spoke to were optimistic about tourism because of the range of employment options that are now available to them. Many Balinese and other Indonesian people have moved to the tourist hotspots to work and send money back to their families.

Economic Advantages

Tourists bring money, and when it’s spent in the right place, it helps the Balinese economy. Because many tourists to Bali are in ‘holiday mode’, they’ll often spend a sizable amount on food, drinks, and shopping. When spent in the right places, this helps the individuals who run the restaurants, guesthouses cafes, etc. Furthermore, as their money is often spent within Bali it strengthens the economy of the island and Indonesia as a whole.

Meeting Foreigners and Sharing Cultures

Globalisation is both good and bad. In a positive light, tourism to Bali has helped locals learn about other countries and has opened them up to the possibilities of remote or international work. Meeting people from all over the globe has amazing advantages, as we can all learn from each other in so many ways, and many people in Bali who aren’t even in the travel industry are now doing a different job, thanks to tourism.

The Negative Impacts of Tourism in Bali

Even without the growing westernization of Bali, it is crazily busy. Bali has a huge population anyway, and then when you take into account the thousands of tourists who descend on the island each year and Indonesians who have moved to the island to work in the tourist industry, you’ve got an island that’s about to sink.

Busyness isn’t something that many people favour when they want a beach break and yes, sometimes you’ll struggle to get a good spot on some of the busier beaches in Bali. But overpopulation has some bigger concerns, especially in places as small as Bali. More people means more traffic (it once took me an hour to drive five kilometres), more development – which can affect the environment – and sadly, more rubbish.

Plastic Pollution

It is no secret that Indonesia has a plastic problem . Not much on the island gets recycled, and because everywhere is so close to the sea, that’s where it ends up – very quickly. It’s easy to forget about the huge plastic crisis that the world is experiencing when we’re offered a straw or a plastic bag – but when visiting Bali or anywhere else in the world (particularly coastal destinations) we really need to be helping the solution, not contributing to it. Sadly, more tourists mean more plastic cups and straws, and more trash in the ocean. I’m not very comfortable contributing to this.

There are also other environmental impacts of tourism on Bali, like the growing need of accommodation options for wiping out protected natural areas. This disrupts the ecosystem and could create a lot of problems for Bali in the long run.

The Dark Side of Bali

Tourism has also introduced some less than desirable qualities to Bali – prostitution, and subsequently, human trafficking is on the rise. The introduction of tourists has also seen the introduction of drugs, which have the death penalty for in Indonesia. You can learn more about these issues – and how to help to prevent them – at Dark Bali .

Economic Leakage

While tourism in Bali has brought more money, a lot of the time it only benefits the owners – who are often foreign. Staff of these big companies are typically not paid that much, and most of the money goes into the wealthy owner’s pocket, who may be from Britain, Australia, the US or any other country – generally a wealthier one than Indonesia. This means that the impacts of these businesses to the Balinese are mainly negative – business is taken away from local competitors, land is taken up, and prices are hiked up for locals.

Cultural Suppression

Balinese culture is one of the main reasons that I love the place. But, due to the overtourism, culture is being more and more suppressed – and it’s really sad. This is one of the negative effects of globalisation – tourists who come to Bali and treat it as their own place, without paying attention to the Balinese way of life, are really wrecking the traditions here. This is a problem all over the world, but out of everywhere I’ve visited I noticed it especially in Bali.

Is Bali Worth Visiting?

Everything being said, I still love Bali, and I still will go back to Bali. I just want to promote the right kind of Bali tourism. There are ways that we can increase the positive impacts of tourism in Bali and decrease the negatives. How? I’ll tell ya…

• Eat at local warungs – not only are these restaurants delicious, and have good vegan and vegetarian options, but they are locally run so the money goes back to the owner, which is normally a family. The prices here are a lot cheaper than what you’ll pay in western restaurants as well. Plus, Indonesian food is great and caters for most dietary restrictions .
• Stay in homestays when possible – Bali is dotted with these. Some are basically locally run hotels, others are local homes. As long as it’s run by Balinese people, it will help them out.
• Take taxi drivers’  tours – many drivers do this as another way of earning an income and find it more enjoyable than driving different people around all day. They are really flexible with their tours and will take you to less touristy places if you ask. If there’s a few of you in the car, it’s a great deal.
• Cut your use of plastic – take reusable straws (you can buy some here), resuable coffee cups (click here to buy) and reusable bags (here’s some)
• Get to know the Balinese people! – English is quite widely spoken in Bali, and the locals are lovely people. They’re always down for a chat, and will love to share their culture and traditions with you.
• See traditional shows – Balinese dance shows are easy to come across, especially in Ubud. There are lots of other ceremonies and rituals, some which tourists are allowed to watch. Having an interest in these keeps them alive.
• Learn about the history and religion of the island – you can do this by visiting some of the many temples in Bali  and chatting to locals about their spirituality and beliefs.
• Head to some less explored places of the island – these areas will be quiet and calm, and a place to experience ‘real’ Bali. You’ll be able to meet some locals here and stay in a homestay.
• AVOID big companies that obviously have their roots in other countries. This includes multi-national hotels, some beach clubs and foreign restaurants and bars.
• Get involved in ethical volunteering, read up about some of Bali’s issues and spread the word about what we can be doing to help. I highly recommend ‘Under the Volcano – The Story of Bali’ ( purchase it here )  to get a good understanding of the island’s history.

Have you visited Bali? What did you think of it? For more ethical travel posts, subscribe to Claire’s Footsteps or follow me on Facebook!

19 thoughts on “ The Impacts of Tourism in Bali ”

Thumbs up Claire for seeing what is happening. Bali by now stinks and sinks under mass tourism who treat the island & take up land as if it IS theirs. Then too, this cannot happen if tourism development is a well balanced arm of government. Alas, it’s AGAIN a corrupt money game, misused by government & foreign investors and overused by long & short terms tourism wrecking it even further. At least most of them.

Thanks for the comment Elisa. I know, it’s really sad and it’s such a beautiful culture that’s being oppressed 🙁 I will still visit Bali, however, and support all of the local businesses and cultures that I love there. I hope you can still find some beauty in the island as well!

I first went to Bali 24.years ago. I then went 9 years ago and again recently. My opinion is that Bali is sinking as you say under the consequence of mass tourism. Attitudes of the Balinese have changed in a negative sense towards tourists. They desire a better life for themselves and their families which is human nature. The main worry of recent is that they can now obtain credit from lenders relatively easily, thus there is more traffic on the roads. I noticed a huge amount of new scooters and cars. They are paying up to 40% interest, private investors can obtain over 20% interest. What would happen if there was a natural disaster like an earthquake or volcanic eruption? Total collapse of the infrastructure leading to the end of tourism for an unknown period of time. These are very worrisome times and I don’t see a solution.

I enjoyed reading your post Claire. My family are visiting Bali in a few weeks and I am using your site to help my IGCSE Geography students understand the good things and bad things about international tourism. Well done

That’s great to hear Neil, I’m glad it’s helping! Thanks a lot for your comment 🙂

Wonderful Post. Really, this is the perfect case study for analyzing how tourism impacts indonesia.

Thanks Prakriti!

Thank your for your attention in bali tourism impact. i am a balinese born and rise in rich culture area of ubud and i can say that all your writing are correct. nowadays beside cultural degradation because of mass tourism we also face a land use change where more and more rice field and riverside, green area were change to villa, hotel and other tourism facility. many of balinese aren’t aware of current change, there are feel more satisfied with evoluiton of thing because its easier to make money from tourism. *sorry for my english

Hi Nyoman, it’s great to hear from a local and thanks for your encouraging comment. Yes I completely agree, industries are changing fast in Bali but that doesn’t necessarily convenience everyone and it definitely should be taken more into account. If you have any more ideas about how tourists in Bali can be more sustainable please do drop me an email at [email protected] , it would be great to get some local perspectives in this post. Also your English is really good! My Indonesian is very bad but I try to speak some words when I’m there and I really like the language 🙂

Hmm yes, interesting.

I found your work to be very helpful with my English tourism assignment, Thanks

Glad to hear that!

GIad to hear that!

I am a Balinese born in Kuta and yes these tourism problems are a great deal in my area.

This really helped me a lot thank you!!??

You’re welcome!

Thank you Claire for your analysis..I use this in my geography class to discuss the impacts of tourism industry in Bali..

Glad to hear this is helpful! 🙂

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Indonesia Investments Report - April 2024  Edition

1 June 2024 (closed)

Jakarta Composite Index (6,970.74)    -63.40   -0.90%

GDP Growth Q1-2024  5.11%  (y/y)

Inflation April 2024 3.00% (y/y)

Central Bank BI 7-Day Reverse Repo May 2024 6.25%

From Paradise to Hell; How the COVID-19 Crisis Has Affected Bali, Indonesia’s Biggest Tourist Destination

As we have discussed in earlier reports and articles, the tourism industry is among the heaviest affected industries amid the COVID-19 crisis. Travel restrictions (such as mandatory COVID-19 tests and vaccines) and in some cases full travel bans set by governments across the world are discouraging people from traveling.

Moreover, a considerable part of the global population is probably simply too scared to opt for traveling under present circumstances; either because they fear to be infected with COVID-19, or, because – in case a spike in new COVID-19 cases occurs – travel bans may suddenly be imposed which could make it difficult for people to return home.

And so, basically anything that is (closely) related to tourism (such as airlines and other transportation services, travel agencies, hotels, restaurants, museums, theme parks, and souvenir shops) has been feeling heavy pressures since early 2020 due to the unprecedented collapse in demand. Moreover it’s increasingly becoming clear that there are no quick solutions to the ongoing COVID-19 crisis, despite political leaders promising (somewhere between mid-2020 and Q1-2021) their populations that a return to normal would be possible after herd immunity is achieved through the ‘two-jab’ vaccination programs.

However, while national COVID-19 vaccination rates in many countries in the West are approaching the ‘herd immunity level’ (65-70 percent of the population), there are no signs that social and business restrictions are to be lifted, for good, anytime soon as COVID-19 mutations undermine the efficacy of existing vaccines. This would mean that authorities keep certain restrictions in place.

So, if authorities continue to restrict economic activity and people’s movement while waiting for the development of an effective and safe vaccine (which perhaps is an impossible endeavor), then these tough conditions may last for many years to come. This would mean that entrepreneurs in the tourism and travel industry of Indonesia will have to wait a long time before conditions turn normal.

We would not be surprised at all if it will take up to four years before the number of foreign visitor arrivals into Indonesia return to levels that were normal in the pre-COVID-19-crisis era. So, for now, we think that around 2025-2026 conditions are to turn normal for Indonesia’s tourism industry. And considering tourism contributes significantly to the national economy of Indonesia (for example via foreign exchange earnings as foreign visitors bring along billions worth of foreign currency into their holiday destinations each year) it is a drag on the whole economy.

This is the introduction to the article ' From Paradise to Hell; How the COVID-19 Crisis Has Affected Bali, Indonesia’s Biggest Tourist Destination ' which is available in the July 2021 report of Indonesia Investments.

Take a glance inside the report here!

The July 2021 report can be ordered by sending an email to [email protected]  or a message to +62.882.9875.1125 (including WhatsApp).

Price of this (electronic) report:

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However, this article can also be purchased separately for Rp 45,000.

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COVID-19 has crushed Bali's tourism industry. These Australians are giving back

It's just on lunchtime as chef Dean Keddell looks out over his near empty restaurant in Bali's once thriving holiday district of Seminyak.

"Normally the restaurants would be full, buzzing … with people, fireworks, there would be a lot going on, but not this year," he says.

COVID-19 has made the difference. Official figures claim there are just over 900 active cases in Bali, but Dean sees the impact of the virus in every empty table and every silent street.

"When COVID-19 hit, the numbers of people overseas cancelling trips went up and panic set in," he says.

"I carried on for three months but I couldn't keep going and I had to cut staff — 95 per cent of my staff are Balinese, I see them as my extended family, now they sit and wait for my call."

It's a dire situation. One that's being played out in businesses right across the island. Dean watches as people leave town and return to their villages, living with their families, growing food to survive.

"COVID-19 has impacted the locals quite drastically," Dean says.

Bali's beachy glitz hides everyday poverty

Even before coronavirus, Bali had a major problem with poverty.

Beyond the tourist centres many families struggle to make ends meet. Food is limited, healthcare basic and education a prized possession.

In truth, Dean says, many Balinese survive only with the help of charity.

"The Government says nobody will starve. It's hard to imagine though if it wasn't for the charities some people would have died long ago. Those charities need money to do their work".

The charities he's talking about include the Bali Children Foundation, established by Australian entrepreneur and renowned philanthropist Margaret Barry, that provides everything from food to education programs for 8,000 young people across the islands.

Now Margaret finds the demand for the Foundation's services rising, and the funds to pay for them harder to find.

"In a normal year I'd go back to Australia, marketing the Foundation to raise money to continue our work," Margaret says. "Without question this is the longest time I've had, not going back."

It's clear talking to her that things are getting desperate. Despite already providing over 1,650,000 meals to remote communities, the demand continues to grow.

"Right now we have funding for food until February and education resources until March," she says. Beyond that timeframe, she adds, there is simply a big question mark.

And then something magical happened

Which brings us back to Dean Keddell.

Sitting in Seminyak, watching the lockdown take effect, he began asking himself how he could give his remaining staff something to do. More than that, how could he help the community survive?

He started thinking, if Australians wouldn't and couldn't come to Bali, why not take Bali to Australia? The question was how.

"A cookbook of course," he says, laughing.

But deciding to create a cookbook was the easy part. His problems were many. First up, how would he differentiate his cookbook from every other cookbook in a crowded market?

"Even before COVID-19, I'd been planning a cookbook. I thought and thought, and I was boring myself to death," he says.

"Then the idea of a community cookbook came up. It started with asking my staff what recipes they would suggest. I went to their homes, ate with them and heard their stories."

At that point, Dean says something magical happened.

"I realised it's the emotion behind the food [that's important]," he says. "You start out asking someone for their favourite dish and then you ask them where it came from and a chef says when he tastes the food he feels his mother's warmth. That really hit me."

But a new problem emerged. And a solution

His second problem was publishing a high quality cookbook with no experience.

Enter Jonette George, owner of Sunday Press Melbourne.

With a track record producing quality books about food and its origins, she offered to help bring Dean's vision to life.

"Having already written a book about the food in Bali, I wanted to help the local people," Jonette says. "I wanted to dig deeper and go behind the scenes to find out how people, some of them quite poor and with few resources, make their favourite dishes."

The result is Our Bali — Your Bali, a cookbook that Dean says will delight cooks but gives the reader something much more than a book of recipes.

"As we put it together I realised it's more about people than the food, it's the stories behind the food and the dishes they make".

'They watch you eat every bite'

Like every author, Dean says he learned a lot as he researched and helped put the book together.

As he researched one chapter he met the chefs from 14 warungs — the small and simple, usually open air and family run, cafes that are found everywhere in Bali — to ask about their kitchen secrets.

"I was met with hospitality. They wanted me to eat their food," Dean says. "They didn't want me to pay for it. They showed me warmth and sincerity that is the same as a five star restaurant. They watch you eat every bite to see if you enjoy it as much as they love cooking it".

Dean says he learned something else too as he wrote the book: "It's expensive, it's a big investment to make this happen."

To combat the lack of funds up front, he set up a website where people who love Bali can pre-order and pay for a book before it is published. The promise is that it will be ready and delivered for Mother's Day in Australia in May.

The goal is to sell 5,000 copies. It's a big ask, but all the money he makes will be poured into the island's hard-pressed charities.

A valuable lesson

There are plenty of people that want this project to proceed including Margaret Barry. She knows book sales will fund food deliveries, but she also knows the money she spends will go back into the community.

"There are so many local people that are part of our organisation. We have 16 staff, teachers, interns and people who deliver the food," she says.

"Locals help with the delivery, we buy locally and there is strong community support.

"We pay a lot of the people working for us with bags of rice. It's the new currency."

David Booth runs the East Bali Poverty Project, which is all about sustainable development providing Balinese in remote villages with water, toilets and food. It's also given young people the chance to work beyond their villages. But with unemployment rising, providing food has become the priority.

"At the moment, monthly food packages are essential," he says.

"In December I spent money I didn't have and now I'm confronted with having to pay for January's food distribution … there are malnourished children out there".

Summing up the whole project Dean still can't believe he's come this far.

People have given him recipes, they've given him their time and expertise to make the book and already food lovers are sending money up front to make the book happen.

But most of all, it's the Balinese people he wants to thank and the lesson in life they gave him.

"I really understood the idea that the less someone has the more likely they are to give".

It's a valuable lesson in troubled times and one that's so easy to forget.

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Bali Worries ‘Unstoppable Flow’ Of Tourism Negatively Impacts Environment

Posted on Published: September 27, 2022

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Communities and traditional leaders in Bali are raising concerns about the impact of mass tourism development on the environment. In areas like Canggu and the villages surrounding Ubud, building development for rental homes, guesthouses, and hotels for tourists and longer-term international residents have often been built on productive farmland.

Anthropologists, conservationists, and traditional Balinese leaders are voicing their concerns for the environment and the future of tourism on the Island of the Gods. 

Following a discussion at the Community Hub House in Denpasar on Sunday, 18th September, local communities have spoken to reporters about their experience of tourism development. The event was titled ‘G20 and the Future of Bali’. Balinese culturalist I Wayan Westa shared his observations of the rapid development on the island over the last two decades.

He explained that he sees Bali as an ‘open fortress’ inviting in an ‘unstoppable flow’ of tourism. He said that these massive developments have bought undeniable positive impacts on the economy but that he fears that the focus on developing the tourism sector has led to the ‘sacrifice’ of agricultural land. 

In calm and respectful opposition to Governor Wayan Koste r, Westa suggests that more robust policies on environmental protection would benefit the island and the tourism sector in the long run. With less and less agricultural land, food scarcity may become a greater issue, as well as the increasingly visible issue of water scarcity in Bali .

Last week, Governor Koster spoke to the media about his vision for sustainable tourism development and food security. He believes that ‘the solution to building tourism while maintaining food security is to build monumental and fundamental infrastructure, as well as tourism that [promotes] local agricultural production’.

Monumental infrastructure is not the angle that Westa is taking. He told the press that future-proofing the island must be conducted with an environment-first approach. He said, ‘How much land do we have left, how many rivers do we have left, and how many water sources have we saved? Then map out how Bali will be in the future’.

During the discussion, the Chairman of the Indonesian Conservation Foundation, Iwan Dewantama, shared his insights . The issue of coastal erosion and tourism development on fragile coastal ecosystems. He explained, ‘Of the nine regencies-cities, five regencies-cities have experienced seawater intrusion. What does that mean? Namely, seawater enters the aquifer in Bali, where the aquifer should be filled with fresh water, meaning that there is a large-scale extraction of our groundwater. For example, how do hotels and villas take our underground water? It’s not controlled’. 

Dewantama urged the government to pay greater attention to the matter, using the example of sinking Jakarta and Semarang. He suggested that tidal flooding events could quickly become the norm if the issue is not tackled more fully and urgently. He said, ‘Though the conditions in Bali’s forest area is not ideal, the lake is polluted, seawater intrusion occurs , water pollution. [These are the] facts that must be a measured of where Bali will go in the future’.

Deputy Governor Cok Ace attended the event and echoed the sentiments of the panel discussion speakers. He said that all future development must ‘be in favor of nature conservation, cultural strengthening and improving quality [of life] for Balinese people’.

The Chairperson of the PHRI (Indonesian Hotel and Restaurant Association) concluded by stating, ‘Save nature, culture, and people, because that’s the only wealth we have. If we realize that tourism development is damaging these three things, we should stop it immediately’. 

Though no policy changes were announced, there are hopes from local communities that these kinds of events will bring their experiences and observations to the attention of decision-makers so that tourism development can be sustainable and that suitable measures are taken to tackle the environmental issues they have highlighted.

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Saturday 1st of October 2022

Perhaps if they spent tourism dollars on educating their own on environmental issues, disposing and collating rubbish and actually putting bins around. It’s aways the foreigners fault in SE Asian. No accountability on how the corruptly run the country

Wednesday 28th of September 2022

If these politicians don't wake up they will destroy the beauty of Bali. stop taking rice fields to build new hotels bungalows etc.There's nothing worse than being surrounded by a concrete jungle.

Agree. Land plots are being subdivided into tiny plots for tiny villas surrounded by concrete walls. Plots are so tiny villas no longer can have even a small garden. No more water catchment or support for insects, birds etc.

Villas and businesses are built without much Balinese themes. In some areas it looks more like Jakarta style town houses.

I wholeheartedly agree.

Bali is way overdeveloped in tourist facilities. The rate of increase in hotel beds, villas,pondoks...far exceeds even pre covid demand, and that of the projected future.

The airport, even with the never happen North Bali airport cannot, and will not, increase the tourist numbers to give an acceptable occupancy rate or return on investment.

We have the ridiculous situation where the real Bali experience is being replaced and promoted by airplanes on roofs and other weird places as restaurants, a proposed Disney like theme park, camel rides?, gym workouts, weddings when for most countries it's not a legally recognised union (ask Jerry Hall, Mick also figuratively screwed her)

The current infrastructure struggles to handle existing demand even with the current post covid tourist numbers. Yet apart from proposed motorways and flying pig suggestions like railways, mandating electric vehicles...there's no meaningful and necessary plans.

What about increased listrik generation, water reticulation, garbage disposal, sanitation (as in sewerage) not septic where the outflow pollutes the groundwater, rivers and so many beaches. Even simple things like floating barriers on rivers, which I know exist in some places, but the crap is rarely picked up.

Why not make beachfront business be responsible, and buy if necessary the equipment to daily clean the beach. For example splitting the cost pro rata along Tuban/Kuta/Legian/Seminyak, or Batu Bolong, Batu Belig, Echo, Pererenan,would be bugger all.

The loss of agricultural land to tourist development has other follow ons apart from reduced food production.

Property prices force locals to move well away from places of employment. More traffic jams, pollution and cost to the rakyat.

Tourism is finite and self limiting. But it's also subject to fashion, price, distance and new experience. Just take Australia. The Pacific region is just as close and cheap, as are the emerging Asian places like Vietnam, Laos, Cambodia...

It's almost beyond belief that the provincial assembly isn't trying, encouraging, funding and supporting industries and business that are outside tourism.

Why should they? An easy answer. Self reliance.

Finally here's a conundrum.

More and more emphasis is being placed on education. Kids are going to college and university. They don't want to be farmers and want to constructively use their tertiary qualifications.

Unless it's highly specialised they've few choices - leave Bali, or work in tourism at a job not commensurate with their qualifications, and for lower pay. Grateful they have a job, but pissed off.

My pembantu was a multilingual tour guide. A Balinese 'family' member with an accountancy degree, 26 years with the same well regarded hotel group is after 19 months being unemployed just started being housekeeper for a bule villa.

Great to hear, focus on the environmental & agricultural impacts, before granting development approvals. Also with a view to the effects on water use and waste disposal / sanitation.

Karen North

So what happened to the new way of Bali after covid? No scungy backpackers allowed, eco and cultural tourism only? All gone to the wind. Let anyone and everyone come to Bali. Even the Russians were allowed back, all in the name of a dollar.

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Negative Impacts of Tourism in Bali: A Comprehensive Guide

In this article, we explore the negative impacts of tourism in Bali, such as environmental issues and effects on equality, as well as touching on some of the positive consequences of tourism.

By Victoria Heinz, of www.guideyourtravel.com All images courtesy of Victoria Heinz

Have you ever dreamed of visiting the beautiful beaches and temples of Bali? This Balinese paradise is a popular tourist destination for many travellers, however it’s important to be aware that tourism may have its drawbacks.

In this article we will examine some of the negative impacts that travel in Bali can have on both the people and environment. From increased infrastructure problems to waste management issues – it pays to do your research before planning a trip, especially if you’re planning to visit popular areas like Uluwatu or Canggu. So read on to find out more about these potential pitfalls and how you can make conscious choices while enjoying Bali!

As any traveller to Indonesia is aware, the country is brimming with lush nature and unique wildlife. It’s a paradise for anyone looking to explore or escape in its natural beauty. However, beneath the surface lies an environmental crisis facing Indonesia today that demands action from both local and international travellers alike.

Table of Contents

Overview of Indonesia’s Current Environmental Situation

Indonesia is currently facing a significant environmental challenge. The rapid expansion of industries such as mining, agriculture, and forestry has resulted in deforestation, soil degradation, and air pollution. Additionally, the country’s coastline and marine life have been heavily impacted by plastic waste pollution.

The government has made some strides in addressing these issues by implementing policies and programs aimed at conserving the environment, such as reducing greenhouse gas emissions and promoting sustainable agriculture . However, much more needs to be done to protect Indonesia’s vast natural resources for future generations .

The Most Pressing Environmental Issue in Indonesia – Deforestation and Land Conversion

Indonesia is facing a critical environmental issue that requires immediate attention – deforestation and land conversion. As one of the most biodiverse countries in the world, Indonesia’s forests are home to countless species of flora and fauna. However, rampant deforestation for agriculture, logging, and mining activities is causing irreversible damage to these precious ecosystems.

This not only affects the environment but also the livelihoods of local communities and indigenous peoples who rely on these forests for survival. The scale of deforestation in Indonesia is staggering, making it an urgent concern that must be addressed to ensure the sustainability of the country’s natural resources and the well-being of its people.

What are the Negative Impacts of Tourism in Bali?

• Overcrowding Issues

As our world becomes more connected and travel becomes easier, more people are flocking to popular tourist destinations. Unfortunately, this influx of visitors has led to a host of overcrowding issues.

Certain areas simply aren’t equipped to handle the sheer volume of people, leading to increased pollution, traffic congestion, and unsustainable practices. It’s heartbreaking to see natural wonders like the beaches in Uluwatu and national parks in northern Bali overrun with tourists, leaving trails of litter and damage in their wake.

The challenge now is finding ways to balance the economic benefits of tourism with the need to preserve these destinations for future generations to enjoy. Can we encourage sustainable tourism practices and limit the number of visitors to these sensitive areas? It’s a difficult question to answer, but it’s one that we must grapple with if we hope to protect these precious resources.

• Environmental Damage

As more and more people travel to exotic destinations, the impact on local ecosystems cannot be underestimated. While tourism can provide much-needed economic stimulus to an area, it can also lead to environmental damage if visitors are not conscientious.

Sun tanning on coral reefs can actually bleach and kill these delicate structures, while littering can overwhelm local sanitation systems and pollute waterways. This is especially a problem in southern Bali and neighbouring islands like Flores . It is important for tourists to understand the impact of their actions on the environment and to take steps to minimise their footprint while still enjoying all the beauty and wonder that our planet has to offer.

• Loss of Traditional Cultural Practices

Balinese culture has always been a source of pride and identity for its people. However, with the rise of tourism in recent years, the influx of foreign visitors has brought significant changes to traditional cultural practices.

While tourism has brought economic benefits to the Balinese people, it has also resulted in some traditional practices becoming lost or forgotten. Sadly, many younger Balinese generations do not have the same appreciation or understanding of their cultural heritage as their elders do.

It’s important for us to remember that preserving these customs and traditions is vital in maintaining the unique identity of the Balinese people. The loss of these practices can result in the homogenization of cultures worldwide, which would be a great shame.

• Increase in Prices

As the economy grows, so does the demand for goods and services. However, this surge in demand has also brought with it a rise in prices. Unfortunately, this means that many locals may find it increasingly difficult to afford necessities such as housing, food, and healthcare.

While it’s great to see our economy thriving, it’s important to ensure that no one is left behind. We must work together to find solutions that allow everyone in our community to access the goods and services they need to lead happy and healthy lives.

• Economic Inequality

Economic inequality has become a growing concern in many places around the world, especially in areas like Bali where wealthy tourists flock for their vacations. The trend of these travellers outbidding local residents for available housing and properties has been on the rise, leading to an ever-widening gap between the two groups.

This inequality can have devastating consequences, such as pushing out long-time residents and making it nearly impossible for them to find affordable housing. As a result, locals are left at a significant disadvantage compared to those who have more financial resources.

• Negative Impact on Local Economy

Tourism has undoubtedly provided financial benefits to Bali, but the extent of these gains is debatable. Unfortunately, much of the wealth generated is not finding its way into the hands of local businesses and individuals, which is concerning.

Instead, multinational companies appear to be reaping most of the rewards. This has created a negative impact on the local economy, as Bali is becoming increasingly reliant on outside businesses for revenue.

As a result, the Balinese are struggling to keep their businesses afloat, which can have significant consequences for the island’s overall economic stability. It is vital that Bali’s tourism industry takes a more balanced approach to ensure that both local businesses and multinational corporations benefit from the tourism boom.

What are Three Positive Consequences of Tourism in Bali?

The effects of tourism aren’t all bad and it’s important to recognise the positive impacts as well as the negative ones.

• Boosting Economic Growth

Bali has been experiencing a significant economic growth boost thanks to the surge in tourism. The influx of visitors has brought in tremendous revenue to the local economy, allowing the region to invest heavily in various infrastructure projects.

The island now boasts modern facilities, high-end accommodations, and top-notch dining options, attracting even more tourists to this vibrant location. With the expansion of new attractions, Bali’s economy shows no signs of slowing down, and the local market continues to thrive. There is no denying that tourism has become a crucial driver of economic growth in Bali, bringing with it endless opportunities for progress and development.

• Creating Job Opportunities

Not only does tourism in Bali provide people with a chance to explore new places and cultures, but it also generates job opportunities for locals. The impact of tourism is particularly profound in rural areas where employment options are scarce.

By providing direct jobs such as tour guides, hotel staff, and drivers, as well as indirectly creating jobs through the demand for local products and services, tourism plays a vital role in sustaining local economies.

• Spreading Cultural Awareness

As tourists flock to new destinations, they bring with them a desire to experience the local culture, to see and understand what makes a place unique. This desire to learn creates opportunities for locals to share their traditions, arts, and crafts with a broader audience, enabling a cultural exchange that benefits everyone involved.

Through tourism, visitors gain a deeper appreciation for the local way of life, while locals are able to showcase the best of their communities and preserve their cultural heritage. It’s a win-win scenario that enhances local culture while creating lasting connections between people from around the world.

About the Author

Victoria is a travel blogger and writer from Germany who now calls Bali her permanent home. She works full-time on her two travel blogs www.guideyourtravel.com  and www.myaustraliatrip.com  and her sites aim to provide helpful and realistic travel advice.

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