Editor’s Pick: The Hidden Cost of Sharing Home with Tourists — Balinese Struggle

This article is adapted from a recent BBC report, “Mengubur mimpi punya tanah di Bali – Warga ‘terjepit’ di tengah perkembangan wisata dan kebutuhan hidup”, by Tri Wahyuni, Ade Mardiyati, and Christine Novita Nababan. The article has been condensed and rewritten in English for our expat readers, with additional data and media added. To read the original report in Bahasa Indonesia, access the link here.

Bali draws millions of visitors and investors alike, leading to rapid growth. But its glittering appeal comes at a cost: As debates swirl over whether the island faces overtourism, locals grapple with rising challenges—even as officials insist the problem doesn’t exist.

Priced Out of One’s Own Home

Ni Made Fitri Apriyani was born and raised in Bali. Yet owning her own house or land on the Island of the Gods feels “impossible” and remains a mere dream.

Her monthly income of IDR 3–5 million as a staff member at a villa is entirely consumed by daily needs.

“Not to mention religious ceremonies. It feels like buying land [or a house] is just out of reach,” said Fitri, as she’s commonly called.

Land prices in Batubulan, Gianyar—Fitri’s dream location—now reach IDR 300 million per 100 square meters.

The 32-year-old suspects that the price hike is partly due to the influx of newcomers—both domestic and international—who move to Bali not as tourists but to settle.

Various data sources reveal a steady rise in land and house prices in Bali over the past several years.

According to Realinfo, a Bali property data provider, property prices in Bali have risen 7% annually over the past five years, driven by high demand and infrastructure development. Rumah123, a property marketplace, recorded that Denpasar has experienced the fastest annual growth in residential property prices in Indonesia.

In September 2024, residential property prices in Denpasar increased by 15.1% compared to the same month last year. This rise far outpaced inflation, with a gap of 11.6%.

Gede, who requested anonymity for his full name and age, works in Denpasar. He has given up on finding housing close to the capital of Bali Province. He has buried the hope of owning a home near his workplace—or at least within a 30-minute commute.

With a monthly income of IDR 17 million and savings, Gede believes that “only a miracle” could allow him to buy a house in that area.

“Even if I managed to save for a down payment, I don’t think I could cover the monthly installments. In Denpasar, the average price has already reached IDR 1 billion for a 100-square-meter house,” Gede told BBC News Indonesia.

This is far beyond the budget he has allocated for land and housing.

Gede has set aside IDR 100–200 million per 100 square meters for land and is aiming for a house priced between IDR 500–700 million, which he hopes to finance through a mortgage.

Ten years ago, Gede had his eye on land in Tangtu, about 20 minutes from Sanur Beach.

He shared that prices there have now skyrocketed to IDR 1 billion, compared to IDR 80–100 million a decade ago.

“At that time, it was still rice fields. But now, this area has become attractive to foreign tourists. There are many villas for rent,” he said.

The villas in the area, according to Gede, often lack Balinese cultural elements like temples, leading him to suspect that the target market or owners are not locals.

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Competing with “Foreign Tourists”

Denpasar is not the only hotspot for property investment in Bali.

Badung Regency—nearly three hours north of Denpasar—is also noted as the most popular area outside Java for property searches on Rumah123 in September, with a 1% month-on-month increase.

Similar trends are happening in other parts of Bali.

Gede, who has expanded his search to “satellite towns” including Tabanan, Gianyar, and even Karangasem, has yet to find land or housing within his budget.

In Tabanan, Ni Made Ariyanti, or Ari, shares a similar story.

“For people like me who are genuinely looking for a home, we have to compete with those looking to buy land not for homes, but for business, resale, or property development—[these buyers] are often willing to pay any price,” Ari told journalist Ade Mardiyati, reporting for BBC News Indonesia.

Ari and her husband have been searching for their dream home or land in Bali for over a year but have yet to find anything affordable. Currently, Ari, her husband, and their child live with her in-laws.

With IDR 450 million, the 28-year-old woman hopes to secure her dream house, while her husband has budgeted IDR 400 million for land.

They have managed to save 80% of their target. If they find suitable land, they plan to take out a bank loan to cover the rest.

“Why has buying land in our own home become so expensive and out of reach?” Ari lamented.

Echoing Ari, Gede expressed sadness about having to “compete with foreign tourists” to secure a home in his own homeland. He voiced concerns that if this trend continues, the situation will become increasingly unfavorable for locals like him.

“They’re not looking ahead 10 years. What will happen when I have children?” Gede said, his tone laced with worry.

Investment Landscape in Bali

According to professional financial planner Loecia Nhadilah Sannie, Bali’s property sector is enticing as an investment, with steady demand and guaranteed availability of labor and land.

“[Balinese people] own land, but it’s not productive. So, they rent it out cheaply. In return, they want help developing it,” said Loecia, who plans to spend her retirement in Bali.

One foreigner interested in investing in Bali is Mike, a 60-year-old British national. He first came to Bali in 2019.

At the time, Mike—who requested that his full name not be published—was attending a friend’s wedding. He claimed to have “seen the future” in Bali and wanted to spend his twilight years on the Island of the Gods.

“I love Bali, I love the people I’ve met. I love its warm air, which is good for this young body of mine,” Mike joked.

That dream came true in 2021. After meeting and falling in love with an Indonesian woman, Mike began studying the regulations around property ownership. He spent six months traveling around Bali looking for suitable land and villas. Eventually, he settled on a plot of land in the Sanur area of Denpasar.

He secured a right-to-use permit for the land for 20 years, as Indonesian law prohibits foreigners from holding full ownership rights. On the 130-square-meter plot, Mike built a house. He spent IDR 1 billion renting the land and constructing the house.

Recently, Mike purchased a 280-square-meter plot under his wife’s name with full ownership rights and plans to build a property for investment.

“My pension from England isn’t much, so I plan to rent out villas,” said Mike.

He is also open to buying more properties in Bali, such as in Jimbaran and Uluwatu, as he believes “land prices there are cheaper.”

A Global Phenomenon: A Shared Issue Among World’s Most Attractable Spots

The grievances of Fitri, Ari, and Gede—unable to afford property in their own hometown—are echoed by residents in other popular tourist areas worldwide, such as Venice in Italy, Greece, Germany, France, and Spain.

In July, Spain witnessed massive protests. Thousands took to the streets of Barcelona, decrying rampant tourism development, which has driven up the cost of living for locals, including higher property rents.

In central Málaga, southern Spain, locals said it is difficult to find apartments with rents below €1,200–€1,300 per month (approximately IDR 20.5 million–IDR 22.2 million).

With an average salary in Andalusia of around €1,600 per month (approximately IDR 27.3 million), many can no longer afford to live in their hometowns.

Protests also took place in other areas like Mallorca in the Balearic Islands and the Canary Islands, both of which are among Europe’s top tourist destinations. At the end of October, outrage over excessive tourism persisted in San Sebastián, a city in the Basque region of northern Spain.

Bizilagunekin, a tourism development platform organizing the protests in San Sebastián, stated that while tourism is a primary source of income for some, it has become an “economic model that strangles” local residents.

Asier Basurto, a member of Bizilagunekin, emphasized that the problem isn’t the number of foreign tourists but that city services cater more to visitors than to residents.

“Public spaces are adjusted for short-term visits, and the tourism industry creates unstable jobs,” he said.

On the other hand, tourism contributes 13% of Spain’s GDP and directly provides around three million jobs.

Hundreds of angry locals in Barcelona spray tourists with water guns to protest against mass tourism.

Protests have erupted across Spain, with locals calling for limits on the number of tourists.

Tourism accounts for 15% of the Spanish GDP.

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— Oli London (@OliLondonTV) July 8, 2024

In 2023, Spain welcomed 85 million foreign tourists, with over 90 million expected this year. This places Spain behind France as the world’s most popular tourist destination.

Some argue that the tourism industry is crucial for economic recovery post-pandemic, but experts warn that mass tourism leading to overtourism harms local residents.

According to the Doxey Irritation Index or Irridex Theory—which examines shifts in local attitudes toward tourism—overtourism occurs when locals feel their daily lives are disrupted by tourist presence.

In a study published in the European Journal of Tourism Research in 2021, researchers stated that overtourism causes environmental and social degradation, traffic congestion, strikes, and tourism-centered activism, and gentrification—referring to a neighborhood’s transformation, marked by increased property values, land-use changes, and the arrival of wealthier social groups.

Tourism gentrification plays a significant role in economically weaker areas that rely on tourism for development and growth.

Is Bali Also Facing Overtourism?

Global travel guide publisher, Fodor’s Travel, has placed Bali on its list of destinations to avoid in 2025 due to overtourism.

Every year, this long-established guide releases a list called Fodor’s No List, highlighting destinations whose popularity has dramatically decreased. In their latest release, they placed Bali in the top spot.

“Rapid and uncontrolled development due to excessive tourism has encroached on Bali’s natural habitats, eroded its environmental and cultural heritage, and caused a ‘plastic waste disaster,'” they wrote on their website.

I Wayan Suyadnya, a sociology professor at Universitas Brawijaya, has argued since 2019 that Bali is already grappling with overtourism, citing signs like gentrification, demographic shifts, and uncontrolled infrastructure growth in areas like Kuta, Sanur, and Ubud.

On the other hand, tourism professor I Nengah Subadra from Triatma Jaya College saw it differently, pointing out that while areas like Kuta, Canggu, and Ubud has suffered from traffic congestion, community disruption, tourist density, and faltering public perception of tourists, other parts of Bali — like its eastern and northern — regions still require more visitors to boost local economies.

This disagreement over the term “overtourism” was also reflected by former Tourism Minister Sandiaga Uno in early 2024. However, just five months later, Sandiaga acknowledged that Southern Bali and Badung Regency were nearing overtourism and called for better balance.

“If it increases by 10 percent more, it will be fully excessive tourism. We don’t want it to end up like in Barcelona, where tourists have become the enemy,” Sandiaga was quoted as saying by Antara News Agency.

Officials Urge Locals to Keep Their Lands—A Sentiment Largely Ignored

The former head of the Tourism Resource Agency at the Ministry of Tourism and Creative Economy noted that he had long predicted that land issues would become problematic for Balinese people. When he served as the head of Bali’s Tourism Department in 1985, Pitana recalled “always advising” locals not to sell their land.

“If possible, lease the land. The lease regulation is 30 years. After 30 years, the land is not gone,” said Pitana.

He advised that the rental income should be used to buy shares in companies developing the land.

In reality, his advice was largely ignored, and Pitana noted that some were “cynical” because there was no formal law preventing people from selling their land.

“Tourist Villages”

Therefore, in 1992, when he served as a consultant for the United Nations Development Programme (UNDP) and reviewed Bali’s tourism master plan, Pitana and his colleagues proposed creating tourist villages.

The aim was to develop tourism in communities based on local ownership and management, “where locals do not sell their land.”

Penglipuran Village in Bangli Regency is an example of this program.

“The village’s income is now significant due to the influx of tourists. As a result, the people of Penglipuran no longer go to work in Denpasar or Gianyar. They work in their village,” Pitana said.

Tourism expert from Triatma Jaya Tourism College in Bali, I Nengah Subadra, noted that the number of tourists has not yet recovered to pre-COVID-19 levels.

According to BPS data, in 2023, domestic tourist arrivals in Bali reached 9.7 million, while in 2019, local tourists totaled 10.5 million—a record high.

For international tourists, BPS recorded 5.2 million visitors from abroad in 2023, compared to 6.2 million in 2019. This year, incoming tourists throughout January–October alone has surpassed 5.3 million.

Moratorium: A “Paradox” for Locals

Although the number of tourists in Bali has not surpassed the record set in 2019, uncontrolled tourism infrastructure development has led to land conversion, which has caused various problems, including traffic congestion.

To address this issue, the Bali government proposed a two-year moratorium on the construction of hotels, villas, nightclubs, and beach clubs in Denpasar, Badung, Gianyar, and Tabanan (Sarbagita) to the central government.

According to Acting Governor of Bali, Sang Made Mahendra Jaya, this moratorium aims “to promote the formation of quality tourism.”

This moratorium policy was set to take effect in October 2024, but as of now, the Prabowo administration has not discussed it, and the policy remains a subject of debate.

Acting Badung Regent Ketut Suiasa stated that the moratorium has caused “a paradox” because they have investment targets to meet. He argued that the moratorium “is not the best solution.”

“We in Badung have not agreed to implement the moratorium,” Ketut Suiasa said in a coordination meeting in early November.

Will Bali Protest Like Spain?

“It’s very sad. The majority seem to normalize living in small boarding houses.”

— Gede, Bali local

Gede believes that the Balinese can only accept their fate, as he thinks they currently live “like frogs in a well.”

“It’s very sad. The majority seem to normalize living in small boarding houses, not realizing that property prices outside Bali are affordable with the local UMR [Regional Minimum Wage],” said Gede.

Despite feeling some of the difficulties, as a native Balinese, he said he would not protest openly. Especially since he works in the tourism industry.

“I’m afraid that if it’s found out, the local government will pressure the company, and I’ll become the scapegoat,” said Gede.

Similarly, Ari also said that for now, he has “no intention of protesting openly.”

Fitri noted her observation of her hometown, saying Bali is “already quite overcrowded.”

“If they’re here just for a holiday, it’s not a problem because their stay won’t be long. But if they stay for a long period, I would join the opposition or petition against long-term residents,” Fitri asserted.

Social and political science lecturer at Brawijaya University, I Wayan Suyadnya, predicted that if tourism development in Bali surpasses the adaptation capacity of the local population, there will be large-scale protests, similar to those in Spain.

“There’s a possibility,” Wayan replied. “But at what point?” he continued.

Such actions have already occurred in Bali, such as in 1994 when the Tanah Lot area was turned into a resort-like tourist destination.

Tension between Resilience and Reliance on Tourism

“Regardless of overtourism, these’s one thing that Balinese will protest in unity: It is when people violate sacredness, like temples or the temple environment,” Wayan explained.

“But as long as nothing violates essential principles like religion, they can restrain themselves.”

Balinese people, he continued, strongly believe in tradition and karma. When a traditional village does not take a stance on the situation at hand, locals will refrain from taking further action, leaving it to the law of karma.

Additionally, there’s a culture of koh ngomong (the reluctance to speak) — avoiding lengthy debates to maintain harmony in Bali.

“When Balinese say that nature will take its course, it means they’re at a point where they’re too tired to speak up or voice their aspirations to representatives or the media,” said Wayan.

In his latest research on overtourism in Canggu, most respondents reported being significantly disturbed by the growing tourism in the increasingly popular area.

“One child stays up until midnight because of constant noise from nearby nightclubs between 7 p.m. to 1 a.m.,” Wayan recounted from his interviews.

“He felt disturbed, but now he says he’s gotten used to it,” he continued.

Being “Captives” of Tourism

Residents describe what they’re experiencing as “part of the consequence of living with tourists” in a tourist destination.

“So it’s not about blaming outsiders for the problems, but rather reflecting on our own needs. We need them. Tourists come, and we, the locals, have to adjust our rhythm of life,” said Wayan.

As a Balinese, Wayan understands this attitude. But he also believes that, on the other hand, this concept has become “reversed” when it comes to tourism.

After conducting research and observing the current situation, Wayan concluded that the Balinese have become “captives” of tourism. The development of tourism is seen as a “powerful spell” that can even “silence” them.

Although friction between locals and newcomers, including tourists, is starting to emerge, the locals still view newcomers as a supporting component in the advancement of the tourism area.

As a result, the local population is “caught in a bind” and can only accept the inevitable changes they must, whether they agree with them or not.