Bali’s Tourism Boom: Paradise Unravels Under the Weight of Overtourism and Mismanagement

Bali’s Tourism Paradise Faces Growing Challenges Amid Surging Visitor Numbers

November 24, 2025 — Over 6.3 million international tourists visited Bali in 2024, marking a significant milestone for the island’s tourism industry. While this surge initially suggests positive growth, it has instead revealed serious strains on Bali’s famed tropical paradise, raising concerns about sustainability and management as the island grapples with the consequences of its overwhelming popularity.

Tourism at a Crossroads: Overcrowding and Environmental Stress

Visitors arriving in Denpasar, Bali’s main gateway, encounter immediate signs of strain. Long traffic jams now routinely clog the route from the airport to prominent destinations such as Ubud. Popular beaches are increasingly crowded, often littered with plastic waste and lined with rows of commercial sunbeds, disrupting the natural scenery that once enchanted travelers. Meanwhile, iconic rice terraces suffer from foot traffic driven by social media seekers, and revered temples see more selfie sticks than traditional religious offerings.

A concentrated tourist corridor stretching from Canggu through Seminyak, Kuta, Ubud, and the eastern cliffs has become one of Southeast Asia’s most densely packed tourist regions, jeopardizing the island’s idyllic appeal.

Tour Operators Report Declining Interest; Seek Alternative Destinations

This over-saturation has led to a backlash among travelers and tour companies, particularly those from Europe and Australia. Compared to the post-pandemic peak of 2024, bookings for 2025 and 2026 are showing signs of decline as tourists express interest in “the next Bali” — destinations like Lombok, Sumba, Sri Lanka, and the Philippines — that promise quieter, cleaner experiences.

It’s Not Just Too Many Tourists—It’s a Lack of Effective Management

Local experts, industry insiders, and government officials widely agree that Bali’s issues are not simply about the sheer number of visitors but rather stem from inadequate management and regulation:

• Unrestrained Promotion: The Indonesian Ministry of Tourism continues to aggressively promote Bali to increase traveler arrivals, often without sufficient regard for the island’s environmental and infrastructural limits.

• Administrative Challenges: Frequent changes in tourism leadership, conflicting policies, and inconsistent enforcement have created an environment where illegal developments and unregulated businesses thrive. Unauthorized villas lacking proper permits and waste management have proliferated, alongside uncertified yoga studios and clandestine bars.

• Tourist Tax Collection Woes: A tourist tax of 150,000 rupiah (approximately $10), introduced in February 2024 to support conservation and cultural projects, has failed to achieve full compliance. Around 35% of international visitors paid the levy in 2024, with inconsistent collection practices across accommodation providers and an unreliable online system undermining its effectiveness.

Expat Community Adds Complexity to the Situation

Long-term foreign residents, including digital nomads, yoga instructors, villa operators, and retirees, form a contentious element in the tourism landscape. While many contribute economically and culturally, some have sparked resentment by flouting visa regulations, competing unfairly with local businesses, and transforming tranquil neighborhoods into party hubs. Media reports highlight unauthorized retreats and bars operated by foreigners without oversight, fueling perceptions that Bali’s cultural heritage is being commodified irresponsibly.

The Threat of a Downward Spiral

Experts warn that if Bali does not act decisively, it risks entering a downward tourism trajectory common to overburdened destinations: declining visitor satisfaction leads to fewer repeat visits and negative word-of-mouth, compelling businesses to slash prices, thereby attracting more budget tourists and perpetuating the cycle.

Already, hotels in hotspots such as Canggu and Ubud report 10-15% lower average daily rates in shoulder seasons compared to 2023, despite rising operational costs. Beaches once praised for pristine beauty frequently appear on “most disappointing” lists. Sacred sites like Tanah Lot and Besakih Temple have imposed strict visitor caps and timed entries—measures that local residents view as overdue but necessary responses to overcrowding.

Potential Solutions: Learning from Global Examples

There is hope if Bali can implement swift and decisive reforms. Worldwide, destinations such as Bhutan, Palau, and post-pandemic Iceland have demonstrated that strict visitor caps, environmental standards, and targeted marketing for high-value tourism can preserve natural and cultural assets while maintaining economic benefits.

For Bali, key recommended actions include:

• Enforcing strict carrying capacity limits in southern Bali while encouraging tourism development in the island’s less populated north and east regions.

• Making the tourist tax compulsory and universal, with collection coordinated at entry points such as the airport to ensure uniform compliance.

• Cracking down on unauthorized construction and visa violations with publicized enforcement actions to set clear precedents.

• Developing and funding regional dispersal programs, including flight subsidies, infrastructure investment, and marketing campaigns to promote parts of Bali beyond the overcrowded southern tourist belt.

• Empowering local village councils (banjars) with veto rights over major construction projects to restore local authority and cultural integrity.

A Critical Juncture for Bali’s Future

Bali remains blessed with stunning natural landscapes, welcoming communities, and a rich cultural heritage that form the foundation of its global appeal. Nevertheless, the island’s tourism paradise is under threat, and time is running out for stakeholders to act.

Without urgent, concerted effort to balance visitor numbers with sustainable practices and cultural preservation, Bali risks losing the very qualities that have made it the world’s beloved tourism haven. The island’s future depends on its ability to protect and manage this treasure responsibly — before its charm and allure fade under the pressure of unchecked growth.