Known as the Island of the Gods, the island of a Thousand Temples, and the Lost Paradise, Bali’s beauty leaves visitors in awe—so much so that many keep coming back, and some even choose to call it home. It’s this very beauty that has made tourism the backbone of the island, which is home to 4mn people. 

As  the backbone of Bali’s economy, tourism contributed a staggering 61% to the island’s GDP in 2019. That year alone, 6.3mn international travellers arrived to enjoy its beaches, temples, and iconic rice paddies. However, this rapid expansion came at a cost—approximately 1,000 hectares of agricultural land were being lost annually to tourism-related developments.

COVID-19 

The pandemic then brought everything to a grinding halt. With strict travel restrictions in place, Bali saw only 51 foreign arrivals in 2021 — a staggering decline. The collapse of tourism left many locals struggling to earn a living. However, with international visitors absent, domestic tourists began exploring lesser-known areas such as Penglipuran village, providing some economic relief to quieter regions. 

Rapid revival, emerging challenges 

Then, as travel restrictions were lifted post-pandemic, Bali once again became a hotspot for international visitors. By 2023, arrivals had climbed back to 5.3mn, surpassing government projections. However, the rapid influx of tourists brought a host of challenges. 

These include unruly behaviour by tourists: Reports of disrespectful conduct, including inappropriate dress at temples and generally disruptive behaviour, rose sharply. By early 2023, over 70 tourism police officers were deployed to manage these issues in popular areas such as Canggu and Kuta.

 In domino-effect this led to an increase in deportations: The number of foreigners expelled from Bali essentially  doubled, rising from 188 in 2022 to 340 in 2023. Many of these individuals were removed for overstaying visas, engaging in unauthorised employment, or failing to respect cultural norms.

Strain on infrastructure too started to show: Traffic congestion became a major issue, with one incident in December 2023 forcing travellers to walk 4 kilometres to reach the airport. Canggu, a hotspot for new developments, has seen worsening urban congestion, exacerbating existing infrastructure problems.

Expansion in 2024

The Indonesian government had set an ambitious goal of attracting 7mn international visitors in 2024. Airlines increased flight frequency, and businesses prepared for another tourism surge. However, deep-seated structural challenges became increasingly difficult to ignore. 

First and foremost perhaps were the water shortages: Tourism accounts for 65% of the island’s groundwater consumption, leading to depleted rivers and water scarcity for local communities. This is an ongoing issue into 2025.

Threats to agriculture and cultural heritage too were surfacing. The renowned Jatiluwih rice terraces, a UNESCO-listed site, are under pressure from urban expansion. More farmers are choosing to sell their land to developers rather than continuing agricultural production.

This has also led to environmental degradation with illegal logging in the Alas Mertajati rainforest depleting natural resources and harming indigenous lands coming full circle to further exacerbate water shortages. 

To address this, Project Multatuli has published an exclusive report on the plight of Bali’s indigenous Dalem Tamblingan people, who have lived around Lake Tamblingan and the Mertajati Forest since at least the 10th century. However, the Indonesian government’s decision to designate the area as a tourist destination has stripped them of their sacred land and traditions.

This in turn has led to cultural commercialisation with many visitors prioritising capturing social media content over genuinely engaging with Balinese traditions, raising concerns about the dilution of the island’s long-term cultural identity with a classic case in point being when Russian influencer Luiza Kosykh posed among the roots of a centuries-old tree in Bali, claiming her intention was to connect with nature when all she is really doing is helping to break the links the Balinese people have to their own roots.