Big trouble for the tourist paradise of Bali

By 2024, the tourism paradise of Bali has seen more than 6.3 million international tourists – a milestone that one can expect to bring celebration to an island where tourism drives much of the economy. However, it has instead become a clear indicator that this beloved tropical escape is straining under the weight of its popularity.

From the moment you arrive in Denpasar, the issues are obvious: long traffic delays plague the route between the airport and Ubud, beaches are littered with plastic and endless rows of sunbeds, rice terraces crunch under the feet of Instagram-seekers, and at revered temples, selfie sticks seem more than realistic offerings. An expanded “tourist zone” running from the Congo through Seminyak, Kuta and Ubud to the eastern countryside now appears to absorb most of these arrivals. Effectively turning the island’s idyll into one of Southeast Asia’s most populous tourist destinations.

In fact, there is a reaction. Some European and Australian tourism companies are reducing bookings for 2025-2026 from 2024 after the peak of the pandemic. Tourists who once only dreamed of Bali are now inquiring about the “Bali of the future”—quiet and pristine places like Lombok, Simba, or even Sri Lanka and the Philippines.

It’s not over-tourism – it’s lack of control

The general consensus among local analysts, hoteliers and even some government insiders points to this: Bali doesn’t necessarily have to deal with a tourist boom. Rather, it struggles with a distinct lack of proper management.

Irregular promotion: Despite Bali’s recognition as a tourism paradise, Indonesia’s Ministry of Tourism continues to aggressively pursue high tourist numbers, often with insufficient attention to the island’s potential.

Administrative issues: Frequent changes in leadership at the provincial tourism office, conflicting regulations, and poor enforcement have contributed to a somewhat disorganized environment. Illegal villages are springing up quickly, sometimes without proper permits or proper sewage management. Unauthorized businesses—from uncertified yoga centers to secret bars—operate openly.

Questionable tourism tax: A 150,000 rupee ($10) levy introduced in February 2024 was meant to fund conservation and cultural projects. However, the head of Bali’s tourism office, Jokorda Bagus Pimayun, admitted that only about 35% of international visitors paid this amount in 2024. Collection is, well, uneven – some hotels collect it regularly, others don’t make it a priority, and the online portal itself can be unreliable.

The question of aliens

Long-term foreign residents—digital nomads, yoga instructors, villa owners, and retirees—are increasingly at the center of regional tensions. While many offer significant contributions to the economy, a small group has expressed dismay over visa regulations, undermining local businesses, and turning peaceful areas into party spots. Reports of foreigners operating illegal retreats or bars have become a hot topic in the local media, fueling the perception that the culture and resources of Bali’s tourist paradise have been produced by foreigners who may not fully respect the island’s norms.

The risk of a death spiral

Historically, destinations that fail to manage mass tourism effectively follow a downward trend: increased tourism means decreased satisfaction, and this leads to fewer repeat visits and less positive word-of-mouth that tends to cut costs and compete for lower prices and, as a result, attract even more budget-conscious tourists. Bali seems to be showing early signs.

Hotels in Congo and Ubud report that average daily rates during the shoulder seasons are already around 10-15% below 2023 levels in real terms, despite the rising cost of land and operations. Once highly rated beaches now often appear on “most disappointing” lists. Sacred sites, such as Tanah Lot and Besakah Temple, have strict visitor restrictions and set entry times – actions that come too late for Balinese residents who feel their island has become somewhat unfamiliar.

The way out – if Bali acts fast

Some degree of this is, of course, unacceptable. Places like Bhutan, which emphasizes high-value tourism with low visitor numbers, or Palau, with post-pandemic Iceland committed to strict environmental standards, illustrate that consistent political action and well-defined regulations can reset the course of tourism.

As for Bali, the necessary measures are well understood, although the political will is still lacking:

• Put strict limits on carrying capacity in the southern regions, and actively push forward into the northern and eastern regions.
• Apply a mandatory international tourist tax, collected on arrival at the airport without exception.
• Take strong action against illegal construction activities and visa violations – starting with the most public cases for a clear statement.
• Initiate a comprehensive outreach plan: provide flight subsidies to less developed areas, invest in infrastructure outside the southern area, and develop marketing initiatives that highlight the “Other Bali.”

Empower local villages (barrens) to reject major construction projects, restoring a sense of local autonomy.

Until these actions are implemented, Bali will remain in limbo: its increasing popularity risks diminishing the allure that initially made it famous.

The island has amazing natural beauty, welcoming residents, and a unique culture. However, the tourism paradise is not limited, and Bali is quickly proving over time that it can protect what the world loves so much.