Over-Exposure to Tourism in Bali, Indonesia

Bali is a province of Indonesia and the westernmost of the Lesser Sunda Islands. The capital of Denpasar ( population 986,853 ) is the most populated city on the Island. As of 2019 the island had a population of 4,362,000 residents. Bali is Indonesia's largest and most popular tourist destination. About 80% of Bali's residents rely heavily on the tourism industry, but due to the coronavirus travel restrictions, the industry is struggling (Yuniti et al. 2020). There has been a significant year over year increase in the tourism economy since the 1980s. Tourism-related business and the supply chain around the industry accounts for an estimated  80% of the economy (Teja 2016) . Indonesia’s national news agency, Antara, reports that 45% of Indonesia’s foreign exchange is derived from Balinese tourism and the industry has grown to 62% of its GDP (Hitchcock, 2007, p.171). 

In the early 1970s, the Bali economy was mainly focused on agriculture. Over the last few decades, international tourism has blossomed. In March 2017, TripAdvisor named Bali as the world's top destination which thrust the destination further into the public eye. As the tourism industry grew the Balinese economy grew with it. With the onset of the pandemic, inbound arrivals declined, negatively affecting Bali's economy. The Indonesian government gave a grim warning that the pandemic will likely decimate Bali’s economy, with a revenue loss of US$10 billion for 2020. While the government has rolled out stimulus packages, the support is nowhere near enough to compensate for the loss of international tourists (Teja, 2020).

The impact caused by the COVID-19 pandemic has been felt in terms of job loss, decreased arrivals, and decreased income. Bali has a high dependency on international tourism, the decrease in arrivals and income has created a risk to the economy. The island has experienced extensive job and income losses since the onset of the Covid-19 pandemic. The island depends on international travel with a majority coming from Australia, China, Europe and South-East Asia.

On March 20th 2020, Bali shut down international travel until the end of 2020 to ensure that they can contain the virus and ensure safety (BBC News 2020). The island has experienced increased unemployment of 2.8 million up to a total of 13 million jobs due to coronavirus (“13 Million Tourism Workers Are Unemployed In Indonesia” 2020). By studying how this small island deals with the pandemic we can gain insight into tourism dynamics in times of crisis and global pandemic. Bali, Indonesia's most-visited island, has suffered the effects of over-tourism in the last few years. This has caused a surge in traffic, an overabundance of trash, and a water scarcity issue.

Bali has suffered from over-tourism, characterized by water shortage, environmental degradation, sanitation issues, over-crowded destinations, loss of authenticity, and higher cost of living. The presence of 6 million annual international and domestic tourists has placed immense pressure on the limited resources of the small island. Adi Nugroho the Head of the Bali’s Provincial Statistics Agency stated, “tourism-related businesses contribute over 50% of the island's revenue and this leads to over-dependence on things that can't be controlled.” With Covid-19 there is a chance to build a model of sustainable tourism.

The Covid-19 pandemic has renewed interest in exploring solutions and opportunities to the problems associated with Bali's over-tourism. The most immediate issues are the over-dependence on tourism and the environmental impact tourism has on the island and its economy. The tourist centers of the island additionally supported a flourishing informal economy including, guide services, beggars, touts, criminal activity and the prevalent sex industry. Inclusive of such informal sector income and related remittances, between 50 and 80% of the island's residents had become reliant on tourism expenditure (Gurtner 2016).

 According to CNN , over-tourism has caused overcrowding, which has strained local resources and wreaked havoc on the environment. The tourists footprint in Bali, has contributed to the degradation of the environment.

The map shows the specific areas on Bali which are experiencing overconsumption of water resources. This overlaps with the main tourist attractions that are located in Map [1].  The ASEAN Post  reported on the tourism-induced water crisis, noting that it "contributes toward 80% of Bali's economy and about 85% of it is in the hands of non-Balinese investors... as much as 65% of the island's groundwater is poured into the tourism industry, drying up 260-out of more than 400-Balinese rivers. Groundwater over-extraction has lowered the island's water table by some 60%, risking irreversible saltwater intrusion."

Bali has the opportunity to reduce the negative social and environmental consequences associated with tourism. “Bali’s water scarcity and sanitation problem are expected to deteriorate unless there’s a paradigm shift in the tourism model to embrace quality sustainable tourism.” Stroma Cole, a senior lecturer in tourism geography at the University of the West of England, and who researches water inequality, told  Al Jazeera .

In the last few years, a garbage emergency was declared, traffic has become horrendous, and tourists are offending locals (Gurtner 2016). Water scarcity, brought on by the rapid development of tourism, has impacted local farmers and created a water scarcity issue. In addition to the negative environmental impacts, authorities are now working to enact guidelines mandating respectful behavior from tourists who are visiting religious sites and disrespecting customs and cultural norms (Gurtner 2016).

The Bali Environment Agency recorded that the island produces 3,800 tons of waste every day, with only 60% ending up in landfills (Erviani). In order to combat the poor waste management in June 2019, Bali became the first Indonesian province to officially ban all single-use plastic bags, straws and polystyrene in a move environmental activists hope will have a domino effect across the country.

The importance of tourism to the Bali economy means they must pursue this strategy with great care and planning to ensure the country can rebuild its economy post covid. This would require an analysis of the optimal level of tourism to maintain both the environment and the economic revenues as Bali begins the process of re-opening.

The post-pandemic strategy can build on the quality of the experience by tourists, with a strong focus on green, sustainable tourism. The covid-19 pandemic has led to a tourism decline which has allowed the fragile ecosystem of Bali to recover. There will need to be an increase in economic activity required for a restart. That will require the local government to adopt a broader environmental policy that takes into consideration methods to improve its infrastructure and tackle some of its existing problems, particularly relating to water and trash management.

The Covid-19 pandemic has created a renewed interest in exploring solutions and opportunities to the problems associated with Bali's overdeveloped tourism industry. Waste and water management, overstretched infrastructure and cultural degradation are real issues, with clear connections to the tourism industry. Bali, Indonesia’s most-visited island, has suffered the effects of over-tourism in the last decade to the point that the government has proposed a tax of $10 per person on all tourists. "Mr. Koster, the Governor of Bali has said that revenue from the tax would go towards programmes that help to preserve the environment and local Balinese culture to ensure there is the preservation of Balinese heritage (Marcus 2019)."

The impact the development and growing arrival numbers have had on the environment is something Bali is deeply aware of.  Indonesia’s new Tourism and Creative Economy Minister, Mr. Wishnutama Kusubandio,  stated the future of tourism on the island will be oriented toward revitalizing and developing other regions on the Island, seemingly shifting the focus away from the comparably more developed South. Bali's tourism industry stakeholders will need to focus on quality tourism and sustainability or quantity development and mass tourism.