The economic impact so far has been greater than that of the Bali bombings of 2002, with losses of around 9.7 trillion rupiah a month.
A different approach may now be needed to save the tourism industry – and to make sure its benefits are more evenly spread. We believe that now is the time to adjust the model in Bali away from surf, parties, and yoga towards rural villages with high poverty rates across the island . As one entrepreneur told us: “Many local creative businesses are managed as informal family businesses. They lack knowledge in professional management and marketing skills.”
And without investment in tourist infrastructure, it would be too easy for tourists to prefer the manufactured version over the true authenticity on offer from local communities. Carefully considered investment, however, could lead to sustainable development. To boost that economy, the island should also consider a tourist tax, while reducing taxes on small-scale home-stays, and better regulating the presence of Airbnb. It also needs to restrict foreign ownership of property, limit destruction of viable farmland and limit business sizes in the south of the island.An island of opportunity