Tourism in Bali has generated billions of dollars over the decades, yet many question where all this money has gone. Despite the influx of visitors and revenue, the island struggles with crumbling infrastructure and environmental issues that impact both locals and tourists alike.
Bali has become a popular destination for tourists, particularly Australians, who make up about a quarter of the island’s foreign visitors. However, the experience for many can be marred by inadequate infrastructure, such as crumbling footpaths and severe traffic congestion. The situation raises pressing concerns about how the substantial financial contributions from tourism are being utilized.
Infrastructure Woes and Local Impact
Footpaths in Bali are often in disrepair, forcing pedestrians to navigate dangerous conditions. Dwi Ermayanthi, who runs Ubud Story Walks, highlights the hazards, stating, “I’ve fallen a couple of times myself.” Tour operators worry about elderly clients and parents with strollers. Efforts to address these issues through light-hearted campaigns, including humorous videos, have gained attention but have yet to result in significant changes.
The traffic situation is similarly dire. Even the sole toll road, constructed to alleviate congestion ahead of the 2013 APEC Summit, frequently bottlenecks due to poor traffic light design. Dr. Agung Suryawan Wiranatha, an expert at Bali’s Udayana University, notes that despite discussions about improvements, the island remains without a train system. Bali’s tap water is unsafe to drink, and streets are often littered with garbage, compounding the frustrations of both visitors and residents.
While tourists contribute significantly to Bali’s economy, local residents bear the brunt of inadequate infrastructure. The persistent question remains: Where does the money go?
Tax Revenue and Corruption Issues
Most taxes collected in Bali are sent directly to Jakarta, the capital of Indonesia. Dr. Wiranatha explains that this distribution often leaves the local population underserved. “If contributions correlate with money being reinvested in an area, the poor remain poor and the rich become even richer,” he states. In an attempt to address this imbalance, the provincial government introduced a $15 tourist levy aimed at the approximately six million foreign tourists who visit each year. Unfortunately, compliance with this levy is low, with only about one-third of visitors paying it.
Lack of awareness is partially to blame, as signage at the airport is scarce, and payment counters are virtually non-existent. Corruption further complicates the situation. Foreigners wanting to start businesses often sidestep legal requirements by appointing local frontmen, which allows profits to flow out of Bali instead of reinvesting in the local economy. Even legitimate businesses, such as international hotel chains, tend to repatriate over half their earnings abroad.
Despite these challenges, Bali remains beloved by tourists. The island’s approach to development has historically prioritized short-term gains over sustainable practices. “There’s no city planning,” Dr. Wiranatha asserts, explaining that businesses often emerge without appropriate oversight, leading to chaotic urban environments.
The provincial government is now trying to rectify historical construction mismanagement, particularly in areas like Bingin Beach. However, any attempts to widen roads or improve infrastructure face resistance, as such measures can be politically unpopular.
Bali’s unique cultural framework, known as Tri Hita Karana, emphasizes harmony among the divine, humanity, and nature. While this philosophy has succeeded in preventing large-scale developments like high-rise buildings, it struggles to combat smaller-scale construction problems, especially when building applications are managed from Jakarta.
Environmental harmony is increasingly elusive, exacerbated by recent devastating floods, which local residents described as the worst they have ever witnessed. Authorities, including Bali’s governor and Indonesia’s environment minister, have linked these floods to overdevelopment driven by tourism. In response, a moratorium on new developments in forested areas and small farming plots around Denpasar has been implemented indefinitely.
Efforts to maintain the island’s charm while addressing infrastructure shortcomings remain ongoing. Dwi Ermayanthi, reflecting on the situation, wonders why fixing the footpaths is so challenging. After her team’s initial humorous video gained traction, a poorly executed repair of a particularly hazardous section nicknamed “Brianna” prompted them to create a follow-up video. Both videos capture the light-hearted spirit of the Balinese while underscoring a serious need for reform.
As the tourism industry continues to thrive, it is vital to consider the long-term implications for local residents. The question remains: Can Bali transform its tourism revenue into tangible benefits for its people? The answer may lie in a commitment to sustainable growth that prioritizes the welfare of the island’s inhabitants.
