Bali’s Tourism Sector Shifts Focus to Sustainability and Cultural Heritage

April 17, 2025 | By Selena Oh, HNN Contributor

Bali, a renowned travel destination, is witnessing a renewed commitment to sustainability and cultural preservation within its tourism sector. With significant developments following a pandemic-induced downturn, the island’s hotels and tourism businesses are actively working toward balancing economic growth with environmental stewardship and cultural integrity.

A Revitalized Tourism Landscape

The pandemic hit Bali’s tourism industry hard, resulting in a drastic decline in visitor numbers. In 2021, the island recorded a shocking drop to just 51 international arrivals. However, as of the end of 2024, inbound visitors surged to over 6.33 million, surpassing pre-pandemic figures of 6.27 million in 2019, according to the Bali Hotels Association. This upswing has been complemented by robust domestic tourism, bringing the total visitor count to more than 16.45 million.

This resurgence in tourism accurately reflects the importance of the sector to Bali’s economy, which relies heavily on tourism for more than 65% of its total revenue. The influx of visitors is also reflected in increased financial metrics; Bali’s average daily rate for hotel room bookings rose to 2,337,924 Indonesian rupiah (approximately $233.79) in 2024, up from 1,506,792 rupiah in 2019. ### Government Initiatives for Recovery

To catalyze recovery post-pandemic, the Indonesian government rolled out various initiatives, including financial aid totaling up to 3.7 trillion rupiah (about $370 million) targeting tourism businesses. This initiative, alongside tax-relief measures and other incentives, has significantly contributed to Bali’s economic growth, which reached a rate of 5.6% by mid-2023. ### Challenges of Rapid Growth

While the rebound presents opportunities, it has also raised concerns about potential overdevelopment and its implications on local communities and the environment. The sharp increase in property investments has prompted warnings from experts regarding a possible oversupply in the commercial real estate market.

In response to these concerns, the Indonesian government imposed a moratorium in September 2024 on new developments in popular tourist areas, including Canggu, Uluwatu, and Seminyak. This regulation aims to protect natural resources and maintain the cultural integrity of the Balinese heritage. However, in January 2025, newly elected Bali Governor Wayan Koster lifted the moratorium, sparking discussions about how to responsibly manage future developments.

Focus on Sustainability

The Bali Hotels Association (BHA), representing more than 155 hotels and 25,000 rooms, is at the forefront of these discussions. BHA’s area vice president, Gottfried Bogensperger, emphasized the need for sustainable resource management, stating that it is essential to approach development cautiously to prevent the negative impacts seen in other tourist destinations worldwide.

To achieve these sustainability goals, the BHA is working closely with stakeholders on several fronts, including:

• Infrastructure improvements to alleviate congestion
• Stricter regulations against illegal accommodations
• Enhanced waste management and environmental protection efforts
• Strategic policies balancing economic growth with social and environmental responsibilities

Plans are underway for a new international airport in northern Bali, expected to be operational by 2027, which aims to accommodate over 32 million passengers.

New Sustainable Developments

New hotel projects are increasingly focusing on sustainability. One noteworthy example is Nuanu Creative City, which has been opening in phases throughout 2024. The development emphasizes a commitment to preserving 70% of its land as green space and incorporates eco-friendly initiatives, such as a ban on tree felling, a fuel-free vehicle zone, and an ambitious reforestation program that planted over 20,000 trees in 2024. The CEO of Nuanu, Lev Kroll, expressed his optimism about the hotel’s future, projecting it would host 3 million visitors by 2025, a significant leap from its 2024 total of 500,000. In addition to Nuanu, several other hotels are set to launch, including:

• The 150-room Regent Bali Canggu
• The 216-room Anantara Dragon Seseh Bali Resort
• The 100-room JW Marriott Ubud Resort & Spa
• The anticipated 110-room Mandarin Oriental Bali Resort, launching in 2027. ## Conclusion

As Bali continues to emerge from the COVID-19 pandemic, the commitment to sustainability and cultural preservation is more vital than ever. Stakeholders across the tourism sector are recognizing the need to adapt to new realities and expectations, laying the groundwork for a more resilient and responsible tourism future that honors Bali’s rich heritage while supporting its economic growth.

For further developments in Bali’s hotel and tourism landscape, follow updates from the Bali Hotels Association and other local stakeholders.

For more hotel news, visit CoStar Hotels.