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Bali’s Tourism Boom Turns to Bust: Is Island Paradise on the Brink of Collapse?

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

November 24, 2025

Bali, Indonesia — The island of Bali, long celebrated as a tropical tourism paradise, is grappling with significant challenges as visitor numbers reached a record high in 2024. Over 6.3 million international tourists arrived on the island last year, a milestone that would typically signal economic success, but for Bali, it has spotlighted a brewing crisis fueled by overcrowding and management shortcomings.

Signs of Strain from Airport to Cultural Sites

Visitors to Bali quickly notice the impacts of this tourism boom. The journey from Ngurah Rai International Airport in Denpasar to popular destinations like Ubud is frequently bogged down by heavy traffic congestion. Once-pristine beaches now contend with excessive commercial amenities such as endless rows of sunbeds and troubling plastic pollution. Iconic rice terraces, a hallmark of Balinese landscape, suffer damage from the high volume of visitors seeking perfect photographs for social media. Sacred temples, including Tanah Lot and Besakih, have witnessed visitors prioritizing selfies over reverence, with selfie sticks often outnumbering traditional offerings.

The core tourist corridor stretching from Canggu through Seminyak, Kuta, Ubud, and along the eastern cliffs has become one of Southeast Asia’s most densely populated tourist regions, leading to overcrowding and environmental degradation.

Tourism Booking Shifts and Emerging Alternatives

This overconcentration of travelers has prompted some European and Australian tour operators to report a downturn in bookings for 2025 and 2026 compared with the highs experienced in 2024. Increasingly, travelers who once exclusively sought Bali are now exploring alternatives dubbed “the next Bali,” such as Lombok and Sumba in Indonesia, as well as Sri Lanka and the Philippines — destinations promising quieter, cleaner environments.

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Beyond Overtourism: The Problem of Inadequate Management

Industry analysts, local hoteliers, and governmental insiders largely agree that Bali’s predicament is less about overwhelming visitor numbers and more about insufficient governance and planning.

The Indonesian Ministry of Tourism continues to aggressively promote international arrivals without adequately considering Bali’s ecological and infrastructural limits. Frequent shifts in tourism office leadership, conflicting policies, and poor enforcement have led to regulatory gaps. Illegal villa developments proliferate, often lacking proper permits and essential wastewater treatment systems. Additionally, unlicensed businesses, from uncertified yoga studios to clandestine bars, operate openly, further straining the island’s resources.

Compounding challenges is the tourist tax introduced in February 2024 — a 150,000 rupiah (approximately $10) fee intended to support cultural preservation and conservation. Yet, Bali’s tourism authority concedes that only about 35% of international visitors paid the tax in 2024, with collection inconsistent across hotels and an unreliable online payment portal.

The Expatriate Factor and Local Tensions

Long-term foreign residents—ranging from digital nomads and yoga instructors to villa owners and retirees—play complex roles in Bali’s tourism ecosystem. While many contribute positively to the local economy, a vocal segment generates tensions by flouting visa regulations, undercutting local enterprises, and transforming tranquil neighborhoods into party hubs. Media reports highlight unauthorized retreats and bars run by foreigners lacking official oversight, fueling perceptions that Bali’s unique culture and resources are being commodified by outsiders with insufficient respect for local norms.

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Warning Signs of a Tourism Downturn

Experts caution that unchecked mass tourism often triggers a downward spiral: visitor overcrowding reduces satisfaction, prompting fewer repeat visits and weaker word-of-mouth recommendations. This, in turn, drives businesses to lower prices to attract budget travelers, further eroding destination quality. Early indicators show this trend in Bali, with hotels in hotspots like Canggu and Ubud reporting a 10-15% decrease in average daily room rates during shoulder seasons compared to 2023, even amid rising property and operational costs. Once-celebrated beaches frequently appear on “most disappointing” travel lists. Notably, major temples have begun limiting visitor numbers and instituting timed entry—a move welcomed yet considered overdue by many Balinese residents who feel their island is losing its authentic character.

A Path Forward Hinges on Swift, Decisive Action

While managing the pressures of a popular destination is challenging, global examples demonstrate it is feasible with political will and well-crafted policies. For instance, Bhutan’s commitment to high-value, low-volume tourism, Palau’s strict environmental guarding, and Iceland’s post-pandemic tourism recalibration offer models for sustainable management.

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For Bali to safeguard its future as a tourism paradise, key measures need urgent implementation:

  • Enforce strict carrying capacity limits in southern Bali’s overcrowded zones, and redirect development and promotion to less-visited northern and eastern regions.

  • Institute a mandatory, universally collected tourist tax at arrival points such as airports, ensuring funds support conservation and cultural preservation.

  • Crack down on illegal building projects and visitor visa violations, starting with high-profile cases to signal seriousness.

  • Develop and promote a comprehensive dispersal strategy, including flight subsidies and infrastructure investments in underdeveloped areas, alongside marketing campaigns highlighting alternate Bali experiences.

  • Empower local village councils (banjars) with authority to reject large-scale development projects to restore local control.

Until such measures are enacted, Bali risks compromising the very allure that made it a global tourism hotspot. Despite its enduring natural beauty, warm locals, and rich culture, the island faces the pressing challenge of proving that tourism paradise can be protected and preserved.

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  • Bali’s Hotels Face Challenges Amid Garbage Management Crisis
  • Sustainable 4WD Adventures Offer New Perspectives on Balinese Landscapes

As the world watches, Bali’s next steps will determine whether it can balance vibrant tourism growth with sustainable stewardship, securing its place as a beloved destination for future generations.

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