The numbers look good. There are now more international visitors to Bali than ever before. 2024 saw almost 6.3 million tourists arrive in paradise, and the tourism office is aiming for 6.5 million this year.
But, tourism is a double-edged sword, and beneath the surface of this boom, sits a complex paradox: who benefits and at what cost? Is this surge driving sustainable growth, or is it overwhelming the island’s resources, culture, and communities? Is it a blessing or a curse?
According to Bank Indonesia’s Bali office, the tourism sector drove a Weighted Net Balance of 65.2% in Q3 2024, up from 40.6% the previous quarter, boosting industries like accommodation, food, and real estate. ANTARA News reported that tourism contributes 25% directly and up to 68% indirectly to Bali’s GDP, underscoring its economic significance.
However, Terje H. Nilsen, CEO and co-founder of Seven Stones Indonesia, cautions against taking these figures at face value. “Numbers don’t lie, but they don’t tell the whole truth either,” he says. “Bali’s tourism is growing, sure, but growth isn’t always progress. We’re seeing more visitors, but are they adding value to the island’s economy and culture, or just straining its resources? More visitors don’t always translate to prosperity for Bali’s people or environment.”
Locals and expats alike are pointing out cracks in the paradise façade: traffic jams that make Jakarta look tame, water shortages, flooding, piles of trash on beaches, drunken brawls. One X user tweeted, “Bali’s losing its soul to over tourism. How do we fix this before it’s too late? Are we loving the island to death?”
These concerns echo Nilsen’s call for a closer look at what “growth” really means. This sentiment is echoed in Facebook discussions, where Seven Stones Indonesia’s followers frequently raise concerns about the island’s capacity. One user commented, “Bali can’t handle what’s happening. Where’s the planning?” Such feedback highlights a growing unease about what the future holds.
Over-Tourism: Stretching Bali’s Limits
Over-tourism is a central issue. A 2018 study by the Transnational Institute estimated that Bali loses 1,000 hectares of agricultural land annually to development. That means the loss of rice fields, and it was published seven years ago! There is no doubt this number has been increasing, threatening the UNESCO-protected subak irrigation system. “The conversion of rice fields into villas and estates is not just a loss of farmland—it’s a loss of cultural heritage,” Nilsen observes. “Bali’s identity is tied to its landscapes and traditions.” Simply put, you can’t have one without the other.
The environmental toll is significant, with plastic pollution and water scarcity impacting both residents and visitors. ANTARA News reported in May 2025 that water usage in tourist-heavy areas like Canggu and Seminyak has led to groundwater depletion, prompting calls for stricter regulations. Widiyanti Putri Wardhana, who succeeded Sandiaga Uno as Minister of Tourism in late 2024, emphasised the need for sustainable practices. “We are prioritising eco-friendly tourism to protect Bali’s natural assets,” she stated during a January 2025 press conference. But talk is cheap. What Bali needs is action.
Economic disparities are another consequence. Skyrocketing prices for land and essentials, largely driven by tourism development, are making housing unaffordable for locals. Yes, tourism brings wealth, but when it’s not evenly distributed, there is a grave danger that locals will be priced out of their own island and forced to live in cramped, overcrowded ghettos, providing the human resources that support the industry. Tourism’s a double-edged sword. It brings income, but it’s also making life harder for Balinese families who can’t keep up with gentrification. A post on X summed it up: “Bali’s economy is booming, but for whom? Locals are struggling while investors cash in.”
Cultural Preservation: A Fragile Balance
Bali’s Hindu-Balinese culture, rooted in the Tri Hita Karana philosophy of harmony between humans, nature, and the divine, is a key draw for tourists. Yet, the influx of visitors, some of whom blatantly disregard local customs, threatens this heritage. ANTARA News reported in March 2025 that incidents of tourists disrespecting sacred sites, such as climbing temple structures, have increased, prompting community backlash. “Bali’s culture is not a backdrop for selfies,” Nilsen says. “It’s a living tradition that needs respect.”
The Bali government has tried to curb this with a list of “do’s and don’ts” for tourists, urging respect for sacred sites and local customs. But unfortunately, enforcement has been lacking. The question is, how do we protect Bali’s culture without shutting out tourists? It’s a tough question. Initiatives like the Tri Hita Karana Certified Property label, floated at a 2024 Bukit Vista roundtable, aim to promote accommodations that respect Balinese values. But scaling this up requires that both developers and visitors need to buy in.
The Need for a Strategic Shift
The solution appears to be in pivoting to quality over quantity. Attract visitors who spend more, stay longer, and respect Bali’s culture. This isn’t new. Industry observers have been bouncing the idea around for many years. Niche markets like wellness and eco-tourism have evolved as a result, and naturally seem to dovetail into the concept. But fewer tourists would mean fewer jobs, right? Not necessarily.
Promoting lesser-visited areas away from Badung in the south of the island would create much-needed opportunities for less-developed regions, but for this to be effective and sustainable, there needs to be a paradigm shift. Developers have to understand and respect Bali’s rich cultural tapestry. What happens to Tabanan and Buleleng, for example, if they simply become the overflow from Canggu and Ubud? More buildings, more beach clubs, less Bali. The government has to think long-term, implement and enforce regulations, develop infrastructure without destroying the island, and invest in education. It’s about creating a win-win for the island, its people, and its visitors.
Long-Term Needs
As we’ve mentioned, Bali’s infrastructure struggles to keep pace with tourism. Try getting to Berawa or Pererenan on a Wednesday afternoon. Don’t even bother if it’s raining when the roads very quickly become rivers. Public transport is practically non-existent. ANTARA News reported in June 2025 that the Trans Metro Dewata bus network has expanded, but coverage remains limited. Ground has been broken, and progress is apparently being made on the MRT, but these are knee-jerks.
Bank Indonesia’s Balinomics 2025 strategy projects 5.0-to-5.8% economic growth, driven by infrastructure investments, digitalisation, and diversity. The latter aimed at reducing dependence on an industry highly susceptible to Black Swans and Lockdowns. The strategy aims to push agrotourism, agroindustry, and creative sectors like artisanal crafts. “Bali can’t rely on tourism alone,” Nilsen stresses. “Supporting local industries and MSMEs creates jobs and resilience.”
A Collective Responsibility
Addressing Bali’s tourism paradox requires collaboration among policymakers, developers, tourists, and residents. Wardhana has called for stakeholder engagement, stating, in a February 2025 Tempo article, “Sustainable tourism is a shared goal.”
So, where does Bali go from here? We can help by travelling responsibly and backing licensed accommodation. We can help by promoting eco-friendly properties and preserving agricultural land; we can help by investing in developments that believe in Tri Hita Karana, in education, and we can help by supporting non-tourism sectors.
Social media is asking the right questions: Can Bali balance growth with preservation? Who’s really benefiting? We need a paradigm shift and a new mindset for Bali to keep its magic and thrive. As Nilsen puts it, “Bali’s soul is its people, culture, and nature. Let’s protect that first.”
If you’d like more details, a private consultation on doing business and investing in Bali, or have initiatives you think can have a positive impact, contact Seven Stones Indonesia via hello@sevenstonesindonesia.com
Sources: Seven Stones Indonesia, ANTARA News, Transnational Institute, Bukti Vista, Bank Indonesia, Tempo