Just two years ago, the site of a bustling Starbucks in Bali was a tranquil rice paddy, swaying gently in the tropical breeze. Today, it stands as a symbol of the island’s rapid transformation—from traditional agriculture to a tourism-driven economy that now accounts for nearly 70% of Bali’s income.
With over six million visitors arriving last year, the island has seen a surge in tourism-related development. Boutique fashion outlets, surf cafés, Pilates studios, and wellness retreats now line roads that were once flanked by rice fields. Billionaire-backed projects, including a proposed “creative city”, promise to reshape Bali’s future even further.
Yet, beneath the glossy surface lies a growing tension. The cost of living has soared, pricing many locals out of their own communities. A $4 matcha latte, easily afforded by a tourist, equates to nearly three hours’ wages for a restaurant worker. Luxury gyms charging $200 a month and $30 for a day pass highlight the stark disparity between foreign spending power and local earnings.
Foreign ownership of businesses is increasingly common, even in traditional Indonesian eateries. While these ventures provide employment, much of the profit flows offshore. Land prices, often pegged to the US dollar, are becoming inaccessible to Balinese residents earning in Rupiah. Infrastructure is straining under the weight of tourism, with water diverted from rice paddies to villas, and roads like the once-rural Canggu Shortcut now choked with traffic.
In response, the Balinese government is taking action. From 2026, a tourist entry tax will be introduced to support cultural and environmental preservation. New hotels and restaurants will be banned in six districts to protect farmland, and stricter zoning laws will be enforced. Building heights remain limited to the height of a coconut tree—typically two or three storeys—to preserve the island’s skyline.
Bali’s challenges echo those of other global destinations. Venice has introduced entry fees to curb day-trippers, Barcelona has capped hotel growth in its city centre, and Thailand’s Maya Bay has temporarily closed to allow coral reefs to recover. These measures reflect a growing awareness of the need to balance tourism with sustainability.
Locals are divided. Some lament the loss of Bali’s unique charm—replaced by generic cafés and luxury gyms—while others welcome the opportunities tourism brings for their children. The island’s future depends on its ability to strike a delicate balance between economic growth and cultural preservation.
If successful, Bali could become a global model for sustainable tourism. If not, it risks losing the very essence that makes it one of the world’s most beloved travel destinations.
