Tourism Development and Its Social Impact in Bali, Indonesia during the Post-Suharto Era

Abstract

Bali has become Indonesia’s most famous international tourism destination. It is important to note that, however, local Balinese society could not enjoy the benefits of tourism because outside forces such as the Dutch colonial government and Indonesia’s central government controlled tourism development from the beginning. During Suharto’s authoritarian rule (1966–1998), when international tourism development increased significantly, social problems escalated, for example, the outflow of tourism revenue outside Bali, growing economic disparities among local Balinese societies, increasing crime, and environmental degradation. In the face of an increasing social problems in Bali, democratization and decentralization happened after the Suharto regime collapsed in 1998. These changes allowed local Balinese people to manage tourism development themselves. It is clear that this new tendency has profound effects on Balinese social problems inherited from the Suharto era. What is the impact of democratization and decentralization on Bali’s local political economy? What are the current conditions of social problems? This paper attempts to explore these questions by analyzing current tourism development and social problems in Bali. In summary, it argues that after democratization and decentralization, Bali has entered an era of competition among local players, and their escalating disputes have ironically negatively impacted social problems, and thus undermining the virtue of local autonomy and democracy.