Sustainable Tourism Development Bali, Indonesia, beach with surfers

Sustainable Tourism Development in Bali: Challenges and Solutions

Bali stands at a critical crossroads. The Indonesian island has transformed from a quiet paradise into a global tourism powerhouse. However, this rapid development brings significant challenges. Today, Bali faces environmental crises, infrastructure strain, and social inequality. Understanding these issues is essential for the island’s sustainable future.

Official seal of the Province of Bali

Historical Development

Tourism Beginnings

Bali’s tourism industry began developing in the late 1960s when surfing enthusiasts discovered the island’s perfect waves. Before this, Bali remained relatively unknown to the outside world.

After Indonesian independence, the government built the Bali Beach InterContinental Hotel in Sanur in 1966. This sparked controversy. Locals protested the ten-story structure. The uproar led to new hotel guidelines stating no building must exceed 15 meters (the height of a coconut tree).

Economic Transformation

Tourism is now the largest economic sector, with tourism-related business making up 80% of the Bali economy. This represents a dramatic shift from agriculture-based livelihoods.

In 2015, Bali attracted 4 million international tourists and 7.15 million Indonesian tourists. By 2019, tourism contributed 18.37% of the total GDP across all sectors.

The growth came at a cost. An estimated 10 square kilometers of irrigated rice fields have been lost to tourist development every year since the 1980s.

Major Problems Today

Plastic Waste Crisis

Bali’s beaches face a serious plastic pollution problem. Indonesia is the second-largest contributor to ocean plastic pollution in the world. Each monsoon season brings devastating tides of trash.

The beaches in Kuta and Legian get up to 60 tonnes of plastic trash each year. Jimbaran Beach and Kedonganan Beach often receive the worst of the plastic tide deposits due to ocean currents.

The problem stems from multiple sources. In 2021, only 48% of Bali’s waste was collected, and just 5% was properly recycled. Much waste originates from other Indonesian islands. Four of Indonesia’s rivers are among the top 20 most polluted rivers worldwide.

Bali currently generates an alarming volume of waste, estimated at around 3,436 tonnes daily or 1.2 million tons annually. Furthermore, waste generation in Bali increased by 30 percent from 2000 to 2024.

Water Crisis

Water scarcity threatens Bali’s future. Over 65 percent of Bali’s fresh water is funneled to tourism. This creates severe problems for local communities.

Half the province’s 400 rivers have dried up and experts warn Bali could run out of water in a few years. The island’s population increased by more than 70 percent from 1980 to 2020, to 4.3 million people.

Tourism dramatically increases water consumption. The average tourist uses an estimated 2,000 to 4,000 litres of water per day. This includes water used in resorts, swimming pools, gardens, and golf courses.

In less than 10 years, Bali’s water table has sunk more than 50 meters in some areas. Wells are becoming dry or contaminated with salt water.

Poverty and Inequality

Despite tourism wealth, poverty persists. The percentage of the poor population in Bali Province in September 2024 was recorded at 3.80 percent. This represents 176,210 people.

Bali performs better than the national average. Bali recorded the lowest poverty rate in Indonesia at 3.72 percent in March 2025. However, inequality remains a concern.

The level of population expenditure inequality in Bali Province in September 2024 was measured at 0.348 using the Gini Ratio. This indicates low inequality compared to other regions.

The tourism boom creates wealth disparities. Per capita income in Bali is nearly three times its neighboring province. However, tourism accounts for 80 percent of the economy, making the island vulnerable to economic shocks.

Tourism Tax System

To address environmental challenges, Bali implemented a new levy. From February 14, 2024, international visitors to Bali are subject to a one-time fee of IDR 150,000 (USD 10).

The funds raised through the levy aim at protecting culture and the natural environment of Bali. The money supports preservation, conservation, and revitalization efforts.

In 2024, Bali collected 318 billion rupiah (approximately US $19.2 million) through the Foreign Tourism Levy, far exceeding the original target of 250 billion rupiah.

The system faces challenges. The Balinese government has made several recent statements that the participation rate and take up of the tourist tax has been lower than expected.

Government and Community Responses

Plastic Ban Policies

The government enacted strict regulations. In 2019, Governor issued Gubernatorial Regulation 97/2018 specifically targeting plastic bags, Styrofoam, and plastic straws.

On April 2, 2025, Governor I Wayan Koster issued Circular Letter No. 9 of 2025 on the Bali Clean Waste Movement. This policy targets single-use plastics across government, businesses, and schools.

The ban is set for full enforcement by January 2026 and spans all sectors. However, enforcement remains challenging. Plastic bags are still among the most frequently found waste items in Bali’s rivers.

Environmental Programs

Funds collected in 2024 are being used to support environmental preservation initiatives. This includes funding traditional performances and supporting local artist communities.

Bali’s government has officially announced a new provincial law designed to protect the island’s coastal regions. The law will be enacted in 2025.

The Bali Net Zero Emission 2045 initiative was declared by the Bali Provincial Government. This aims to transition to clean energy and sustainable development.

Infrastructure Development

The government addresses the water crisis. Several trash racks have been installed to collect waste from rivers near estuaries. These aim to prevent plastic waste from reaching the sea.

Technical experts announced a collaborative community solution to help restore island aquifers. The plan involves building 136 recharge wells in critical areas.

Important Organizations

Sungai Watch

Founded by the Wijsen siblings, Sungai Watch installs floating barriers in rivers across Bali to intercept waste before it reaches the ocean.

As of 2024, they’ve collected over 1 million kilograms of plastic from more than 180 river barriers. The organization focuses on cleanup, sorting, recycling, and data collection.

Implementing Sungai Watch’s village model, which includes 15 barriers, costs $150,000. The organization is largely funded by corporate sponsorships and grants.

Bye Bye Plastic Bags

The campaign was launched in 2013 by founders and sisters, Melati (18) and Isabel (16) Wijsen when they were 10 & 12 years old.

BBPB raises awareness and educates about the harmful impact of plastic on our environment. They have spoken to over 1,000,000 youth.

It took a lot of work and collaboration between many organizations to achieve an official law against single-use plastic bags, straws, and Styrofoam in Bali.

Other Environmental Groups

Multiple organizations work on environmental issues. Eco Bali Recycling offers collection and recycling services to homes, schools, and businesses. Trash Hero organizes local cleanups and educational workshops.

The Bali Sea Turtle Society focuses on turtle conservation. BAWA (Bali Animal Welfare Association) improves animal welfare on the island.

Key People

Melati and Isabel Wijsen

Sisters Melati and Isabel Wijsen started Bye Bye Plastic Bags at ages 10 and 12. They led the movement that achieved Bali’s plastic bag ban.

Melati founded Youthtopia in 2020. This platform offers free peer-to-peer courses for young changemakers. Their work gained international recognition, including speaking at the United Nations.

Gary Bencheghib

Brothers Sam and Gary Bencheghib made headlines in 2018 by kayaking down Indonesia’s most polluted river. They founded Sungai Watch to address plastic pollution.

Gary leads the organization’s expansion. The team has cleared close to 1.5 million kilograms of plastic waste.

Governor I Wayan Koster

Governor Koster leads governmental environmental initiatives. His statement emphasized that “Green hotels, green malls, green restaurants – that’s the future of Bali”.

He issued critical environmental regulations. These include the plastic ban and tourism levy implementation.

How to Improve Bali

Sustainable Tourism Development

Bali must balance tourism growth with environmental protection. The Balinese government has started designating certain areas as “green zones”. These zones restrict construction and commercial activities.

Community-based tourism offers alternatives. Villages like Munduk embrace eco-focused tourism models. These emphasize conservation and local community benefits.

The government has initiated measures like a moratorium on new hotel developments. This helps mitigate negative impacts of overdevelopment.

Infrastructure Investment

Water infrastructure needs urgent attention. Bali’s water requirements in 2021 amounted to 5,951.92 liters per second, projected to increase to 7,991.29 liters per second by 2025.

Waste management systems require expansion. One key objective outlined in the Bali Economic Kerthi Roadmap 2045 is to achieve 100 percent waste management.

Transportation improvements reduce pollution. Integrated public transit and dedicated lanes can decrease congestion and emissions.

Education and Awareness

The province of Bali is actively engaging in education efforts through television, radio and online campaigns. Community awareness about waste management remains crucial.

Schools play an important role. Educational programs teach children about recycling and environmental protection. This creates long-term behavioral change.

Tourist education matters too. Visitors need information about sustainable practices. Hotels and businesses must promote eco-friendly alternatives.

Economic Diversification

Reducing tourism dependency strengthens resilience. New coworking spaces and incubators are creating a nascent startup tech community.

An organic farming movement is spreading, seeking to preserve indigenous farming practices while creating new income streams. High-quality food products can be sold locally and regionally.

Supporting traditional arts and crafts preserves culture. These industries tap into high-end markets beyond cheap tourist souvenirs.

Policy Enforcement

Strong enforcement mechanisms are essential. Bali does have rules, like water permits and taxes on water used, but there is no enforcement.

Regulations need teeth. Penalties for violations must be substantial. Monitoring systems should track compliance regularly.

Collaboration between government levels improves outcomes. Provincial, district, and village authorities must coordinate efforts.

Community Empowerment

Local communities must benefit from tourism. Local engagement is critical to successful environmental management. Skills training and active participation in decision-making ensure tourism aligns with community priorities.

Traditional village structures provide organizational foundations. These customary institutions can implement and enforce environmental standards.

Revenue sharing ensures fairness. Tourism profits should support local infrastructure and social programs.

Looking Forward

Bali’s future depends on collective action. The island faces unprecedented environmental and social challenges. However, significant progress is underway.

Government policies show commitment to sustainability. The tourism levy generates funds for conservation. Plastic bans reduce pollution at the source. Coastal protection laws preserve natural resources.

Grassroots movements demonstrate community power. Organizations like Sungai Watch and Bye Bye Plastic Bags mobilize thousands. Their success proves that youth-led initiatives create real change.

Technology offers solutions. River barriers intercept waste. Aquifer recharge wells restore water supplies. Data collection enables targeted interventions.

The transition requires patience and persistence. The ban faces economic concerns, but waste reduction is the cheapest option compared to larger future costs from environmental degradation.

International cooperation amplifies impact. Corporate sponsorships fund cleanup operations. Global recognition attracts resources and expertise. Knowledge sharing spreads successful models.

Tourism can drive sustainability rather than destruction. Eco-conscious travelers increasingly seek responsible destinations. Bali is setting a new standard for responsible tourism in Southeast Asia.

The path forward requires integrated approaches. Environmental protection, economic development, and cultural preservation must advance together. Short-term profits cannot override long-term sustainability.

Water security demands immediate action. Without adequate fresh water, Bali cannot support its population or tourism industry. Infrastructure investment and consumption reduction are both necessary.

Waste management needs system-wide transformation. Collection, recycling, and reduction must improve simultaneously. Individual behavior change and policy enforcement work together.

Climate change adds urgency. Rising seas threaten coastal areas. Changing rainfall patterns affect agriculture. Adaptation strategies must accompany mitigation efforts.

Bali’s challenges reflect global trends. Many tourist destinations face similar pressures. Solutions developed here can inform practices elsewhere. The island serves as both warning and laboratory.

Success requires vision beyond quarterly earnings. Sustainable development benefits future generations. Protecting natural beauty preserves the foundation of tourism itself.

The question is not whether Bali can afford sustainability. The question is whether Bali can afford to continue without it. The answer grows clearer daily.

Bali’s transformation from agricultural society to tourism powerhouse happened rapidly. The next transformation—toward sustainable development—must happen faster. Time is running out.

Yet hope remains strong. Young activists inspire global movements. Communities organize for change. Government leaders implement bold policies. Tourists choose responsible travel.

Every action matters. Businesses adopting green practices reduce environmental impact. Individuals refusing plastic bags decrease waste. Visitors respecting local culture preserve traditions.

Bali’s story continues to unfold. The next chapter depends on choices made today. Will the island achieve balance between development and preservation? Will tourism support rather than exploit local communities? Will environmental protection enable economic prosperity?

The answers lie in collective commitment. Bali’s future belongs to everyone who loves the island. Protecting paradise requires dedication from all stakeholders.

The journey is difficult but necessary. The destination—a sustainable, prosperous, culturally vibrant Bali—is worth every effort.

Sources & Links

Sustainable Tourism
NGOs
Poverty Profile

BPS Statistics Indonesia
The percentage of the poor population in Bali Province in September 2024 was recorded at 3.80 percent, a decrease of 0.20 percentage points compared to March 2024 and a decrease of 0.45 percentage points compared to March 2023.

The number of poor people in Bali Province in September 2024 was recorded at 176.21 thousand people, a decrease of 8.22 thousand compared to March 2024 and a decrease of 17.57 thousand compared to March 2023.

The Poverty Line in Bali Province in September 2024 was recorded at IDR 580,306 (USD 34.78) per capita per month, with the composition of the Food Poverty Line at IDR 399,291 (USD 23.93) per capita per month (68.81 percent) and the Non-Food Poverty Line at IDR 181,015 per capita per month (31.19 percent).

Waste Crisis
Water Crisis

VOA
Bali, Indonesia, is facing a worsening water crisis from tourism development, population growth and water mismanagement. Shortages already are affecting UNESCO World Heritage structure, food production and Balinese culture.

Experts warn the situation will worsen if existing water control policies are not enforced across the island.