Bali, a verdant tropical paradise laden with vibrant flora and fauna, impressive volcanoes, luscious rice fields and dramatic limestone cliffs. With its sandy beaches and crystal-clear waters, it is no surprise that so many dream of visiting and experiencing the diverse and mystical land. This idyllic landscape conjures images of the perfect romantic island destination, and for many, it is. However, Bali hasn’t just earned its reputation from its magical scenery. Exotic dance, striking music, unique culture and kind local people have undoubtedly captured the hearts of its visitors. Combined with a rich, sacred history it appears that Bali has it all.
Situated in the Indian ocean to the east of Java, Bali is one of the 17,000 islands which form the world’s largest archipelago, the Republic of Indonesia (Dalem, 2002, p. 85). It is widely acknowledged that Indonesia is the second-most biodiverse country after Brazil (Primack, 1998). As a result, the island is covered with paddy field terraces, wild forests, ancient banyan trees, flowing rivers and a whole host of indigenous plants and animals. In addition, arable fertile soils from the active chain of volcanoes in the North have blessed Bali with distinctive scenery and also perfect conditions for growing a wide variety of crops, in particular rice, coffee, tea and vanilla. With over 100,000 tonnes of rice exported annually (Balix.com, 2017), it was previously the largest contributor to the economy. That is, until tourism came into force.
Between 2015 and 2016, Bali saw a dramatic increase in tourist numbers of 22.55%. In 2016 a record high 4.9 million foreign tourists chose Bali as a holiday destination and this number looks set to increase further in the near future (Bali Update News, 2016). Bali ended 2016 with a record-high 4,904,175 foreign tourist arrivals representing an increase of 22.55% over total foreign arrivals recorded in 2015. UK tourists accounted for 32% of these arrivals at just over 220,000 visits in 2016 (Bali Update News, 2016).
Whilst the rising number of tourists undoubtedly bring a whole host of benefits to Bali, it is evident that there are many negative impacts too. Economic issues such as exploitation, low pay, little job security, localised inflation and widening inequalities have all been accelerated as a result of tourism. In order to combat some of these issues, ecotourism and other forms of sustainable tourism are being used. By keeping the economic benefits at a local level, native communities can use tourism to their economic advantage. However, ecotourism must be planned, managed and carried out in a careful way in order to ensure this happens and an understanding of what it actually is must be made a priority.
Ecotourism is a form of sustainable tourism defined as “responsible travel to natural areas that conserves the environment, sustains the well-being of the local people, and involves interpretation and education” (TIES, 2015). This education should involve both the visitors and hosts. Ecotourism is based upon numerous principles which aim to reduce the negative impacts of tourism in an area. This is achieved in a variety of ways but involves building cultural awareness and respect, creating low-impact facilities, providing positive experiences for both hosts and visitors and also creating financial benefits for local people and private industry (TIES, 2015). In a nutshell, it is about uniting conservation, communities, and sustainable travel.
Sustainable tourism ‘requires the informed participation of all relevant stakeholders, as well as strong political leadership to ensure wide participation and consensus building. Achieving sustainable tourism is a continuous process and it requires constant monitoring of impacts, introducing the necessary preventive and/or corrective measures whenever necessary’ (sustainabletourism.net, 2014). Hence, in order for tourism to be considered sustainable, visitors must try to make their visit have a positive impact on the local environment, local community and local economy.
Economically sustainable ecotourism should focus on keeping the economic gains of tourism within the local community. By employing local people, promoting local businesses and reducing any leakages from the local tourist economy, the community should profit from tourism. In essence, if the economic benefits which tourists bring don’t trickle down to the local population, ecotourism is not entirely economically sustainable.
History of Tourism and ecotourism in bali
Tourism hasn’t always been part of Bali’s identity. It has only really been over the past century, with lower costs in air travel, that Bali has become a ‘bucket list’ destination for so many. However, many efforts to attract tourists have been trialled throughout this time, each with varying success.
Indonesia was under Dutch rule for almost 150 years between 1800-1949, otherwise known as its colonial period. The Dutch East Indies, formed from the colonies of the Dutch East of India Company, saw the significance of Bali’s equitable climate, unique culture and fantastic natural beauty, and were also aware of the profit potential of the tourist industry (Kurry, 2010). Having acknowledged Bali as being a modern-day utopia with the potential to become a mass tourist destination, it was decided that Bali should be promoted to the world. As a result, in 1914 the Dutch set up the Official Tourist Bureau in Bali (Kurry, 2010). With the island being marketed around the globe, tourist numbers rose steadily and with a rise in affordable long-haul travel post-WW2, it became a popular holiday destination for the rich and famous. With decolonisation in the 1950s leading to the formation of the Republic of Indonesia, the new government introduced a new official strategy for Bali, cultural tourism in combination with a large-scale enclave resort concept at Nusa Dua (Byczek, C. 2011). Added to images taken by the media depicting large waves ideal for surfing, Bali was painted as the newest ‘surfing mecca’ (Kurry, 2010). Over the next few decades, the Balinese economy developed towards tourism. As visitor numbers rose in the 1990s in line with the worldwide tourism growth rate at its highest ever, Bali became frequented with resorts and tourist facilities as construction boomed. However, the future of Balinese tourism became uncertain in 2002 when two bombs exploded in the Kuta area, tragically killing 202 people (BBC News, 2012). Once again, a terror attack in October 2005 gave Bali a tentative future with 23 being killed by suicide bombers. In the month following this second attack, tourist numbers fell from 168,170 in September to 86,800 in October (the Guardian, 2005). Nevertheless, in the long run tourists were not put off by these tragic events and in 2009 Bali exceeded 2 million foreign visitors for the first time, demonstrating a growth rate of 13.26% over 2008 (Kurry, 2010). Since then, with further falls in the cost of long haul travel and an increase in the demand for exotic holidays, tourism has expanded over twofold. Incredibly, Bali ended 2016 with a record-high 4,904,175 foreign tourist arrivals representing an increase of 22.55% over total foreign arrivals recorded in 2015 (Bali Discovery, 2016). This unprecedented growth in tourism looks set to continue but at just 5,780 km² (Wikipedia), the inevitable strain on the nation’s people and environment as a result of mass tourism is also likely to rise.
In more recent years, a boom in the demand and supply of ecotourism resorts and initiatives in Bali has occurred. The first developments in Balinese ecotourism began in the mid-to late 1980s, championed by Ida Ayu Mas. The efforts were originally focused on the Balinese philosophy of life (a dynamic, balanced and harmonic relationship between humanity, spirituality and the environment) (Dalem, 2002, p.91). However, Indonesia on the whole began to utilise the concept of ecotourism in the 1990s. In 1995, a national seminar was held to discuss the future of ecotourism. This led to the formation of the Indonesian Ecotourism Society (Masyarakat Ekowisata Indonesia, MEI) in 1996 (Dalem, 2002, p.86). This initiative has the purpose of increasing awareness of the need for conservation of potential natural tourism resources in Indonesia and also for providing economic benefits in a proportional manner to the communities in the ecotourism destination areas. As a result of this, many ecotourism resorts have been built in different areas. With many Western travellers now looking to minimise the impact of their trips, it is no surprise that ecotourism really took off in Bali in the early 2000s. According to Jenny Rushmore from the online travel website TripAdvisor, 71 % of travellers are interested in going on a ‘green’ trip, giving ecotourism great potential (Floreana Miesen, 2013). This mind-set which many travellers share was undoubtedly aided by the UNs proclamation of 2002 as the International Year of Ecotourism (Tomomi, n.d, p.79). Worldwide, this created a growing industry and now alongside eco-resorts, a plethora of eco-tours and eco-excursions are now offered.
Economic impacts of ecotourism in bali
With a staggering 4.9 million visitors to Bali in 2016 (Bali Update News, 2016), it is unsurprising that the economic, environmental, cultural and social impacts of tourism are widespread. Economically, the impacts of ecotourism are both positive and negative. However, it is important to note that the specific economic impacts are unclear due to it being difficult to fully distinguish between different types of tourism. For example, not all sustainable tourism is ecotourism so some ideas linked to sustainable tourism as a whole may not be applicable for ecotourism. Also, even if people choose to visit eco resorts or use eco excursions, they may also spend money in less sustainable ways where the money leaves the local economy and vice versa. This means that even if people choose a visit which is classed as being ‘eco’, they may also be contributing to some of the problems Bali faces, even though they aren’t directly caused by ecotourism activities. In addition, some of the issues and benefits caused by ecotourism may in fact also be down to other forms of tourism. For example, in areas where ecotourism is in force there could be high levels of local inflation, but it may not be caused solely by the eco resorts and could instead be down to other tourist resorts or activities. Nevertheless, there are some obvious economic impacts directly linked to ecotourism.
On one hand, ecotourism has many positive impacts on the Balinese economy. Ecotourism resorts create vital employment for local people. Whether they are directly employed by the resort or work near them, for example in restaurants or excursion centres, an increase in tourism to an area will create jobs for local people. As a result of a greater demand for local goods and services, incomes should rise. Generally speaking, this should have largely positive impacts in an area. For example, greater incomes tend to lead to reduced poverty as people have better access to basic needs.
On the other hand, however, ecotourism also has some negative impacts on the Balinese economy. Firstly, although many eco resorts aim to avoid this, a lot of the money spent by ecotourists will inevitably leak from the local economy. This goes against the principle that ecotourism should ‘sustain the well-being of the local people’ (TIES, 2015) as the benefits which eco tourists bring do not always help the local people. In addition, many of the jobs offered in the ecotourism sector are informal and offer little social protection (Miesen, 2013). Hence, although the industry does offer employment opportunities, they may not be secure in the long run. Economically, this is an issue as it may reduce the resilience of the local workforce. If a decline in the demand for workers in ecotourism was to occur for example, it is likely that with many jobs being informal, unemployment would soar.
Jed village network
Jaringan Ekowisata Desa, also known as JED village ecotourism network, was created in 2002 in response to the rising tourist industry in Bali. It was launched and is now owned by four Balinese villages– Kiadan Pelaga, Dukuh Sibetan, Tenganan Pegringsingan and Ceningan Island. The network also has administrative assistance from the Wisnu Foundation, one of Bali’s oldest environmental NGOs (JED, 2015). By keeping the initiative at just five stakeholders, it is hoped that the network’s principles can be achieved. Economically speaking, JED aims to use funds generated through ecotourism to develop the communities involved. In order to do this, the network offers a variety of different options to tourists to allow them to give back to Bali and support the local economy. From a stay in Kiadan Pelaga Village, a coffee growing community in the mountains, to cultural day trips to villages such as Tenganan, JED aims to make ecotourism accessible for all. All of its authentic trips support the stakeholder communities, and by promoting cross cultural understanding, local spending and education of both hosts and visitors, JED is aiming for a sustainable approach to tourism.
The economic benefits of JED are undisputable. Unlike many tourist resorts in Bali, which are planned, managed and owned by stakeholders elsewhere in Indonesia, for example Jakarta, JED is based solely in Bali (JED, 2015). According to Jakarta Post, JED gives the villages half of the revenue from associated tourism businesses, with the rest going towards marketing, development and operational costs (Resonance, 2014). As some of the most remote and low-income communities in Bali, this is of huge economic gain and could allow for positive long-term community development. In doing this, leakages of funds generated through ecotourism are reduced dramatically and the benefits of tourism are largely kept local.
When it comes to the economic sustainability of JED, there are both arguments for and against its viability as a realistic alternative to mass tourism.
As previously highlighted, profits of associated tourism activities are largely kept in the stakeholder communities. As a result, local villages can benefit from increased incomes and relatively secure employment. Furthermore, seeing as the stakeholder villages aren’t in the typical areas a tourist would visit, for example Ubud, Kuta or Legian, JED has given the areas an opportunity to utilise tourism, a prospect they otherwise would probably not have. As a result, employment opportunities in the local communities are no longer solely based on traditional farming and agriculture. This has in turn relieved the strain and pressure on the success of more traditional income sources. Hence, it has allowed communities to diversify economically, whilst still remaining true to authentic practices. This could be seen as highly sustainable as it has allowed the villages to receive higher incomes from a wider range of employment types, whilst still maintaining cultural balance. This could be of huge benefit if for example, crops were to fail or demand for produce were to fall as there would still be a steady source of income from ecotourism; improving resilience too.
In addition to this, JED could also be seen as sustainable due to the limit placed on visitor numbers. Each village has a limit of 10 visitors per day (Resonance, 2014). This is hoped to allow the villages to both maintain high tourist experience standards and also to maintain culture. Economically, this is sustainable for the communities as it makes tourist numbers manageable. As a result, it is unlikely that the villages will expand at an uncontrollable rate or become exposed to the issues associated with mass tourism.
However, the JED network could be seen as economically unsustainable due to its cost. Day trips cost US $75, and overnight trips $100 (JED, 2015), prices unaffordable for many. Although these prices are not uncommon in Bali, it raises the issue of whether ecotourism is accessible for all visitors. Nonetheless, the network is still economically buoyant 15 years after its founding, so the demand is clearly there.
Overall, JED is largely economically sustainable. The issue of leakages from the tourism industry is eliminated and the funds brought by tourists are kept within the communities they visit. JED has diversified employment in small, rural villages otherwise off the map to most tourists, thereby increasing resilience whilst also raising incomes. Through the careful management of tourist numbers and the grass-roots decision-making in the communities involved, tourism is used in a positive way which meets the needs of the people. This also means that tourism cannot develop into a negative for the villages as the minimisation of visitors reduces the possible negative impacts associated with mass tourism. Despite the question of whether what is offered can be accessed by all who visit Bali, JED has used ecotourism in a way which successfully unites conservation, communities and sustainable travel (sustainabletourism.net, 2014). As a result, JED is on the whole an economically viable and sustainable way in which to use ecotourism.
alila ubud
Nestled in the tropical hillside, just 5km from the arts and culture centre of Bali, Ubud, Alila eco resort aims to combine both luxury and sustainable travel to create an unforgettable experience for its visitors. Alila sits high up on the edge of the Ayung River valley, giving it some of the most spectacular views in the whole of Bali. Having recognised the heavy toll increased development and tourism has caused in Bali, it prides itself on a philosophy of environmental and social sustainability. The hotel has been designed to minimise its carbon footprint, and through the use of local materials, labour and ingredients it has fully embraced what the local communities have to offer. Offering excursions which cover the ‘five themes of Cultural Learning (love of history and artisanship), Conscious Living (wellness, environs and community), Active Spirits (outdoor sporting pursuits), Culinary Arts (cooking school and food trails) and Couple Celebration.’, the resort aims to give back to the local communities. Alila states that it ‘strives to minimise our environmental impact across our operations, measuring our eco performance against international sustainability benchmarks, and engage with local communities to create economic opportunity, improve quality of life, and bring real and lasting benefits.’ (Alila Hotels and Resorts, n.d).
Alila Ubud recognises the need to work in harmony with the local environment and community. Alongside this, they work hard to minimise the negative environmental impacts of tourism and in doing this, have won numerous awards. In 2016, they were awarded a ‘Silver certification for environmental practices’ by EarthCheck, the world leading benchmarking and certification provider, and in 2010 the prestigious ASEAN Green Hotel Award (Alila Hotels and Resorts, n.d). Overall the hotel hopes to have a positive environmental, economic, social and cultural impact for both hosts and visitors.
In order to make a positive economic impact in the local area, Alila Ubud has partnered with three local villages within a 10-kilometre radius of the resort. Over 80% of its staff members come from these villages, providing vital employment for many. Furthermore, 92% of its staff members are native to Bali (Alila Hotels and Resorts, n.d). Alongside this, the resort provides financial aid to these communities, with the hope of supporting development and upkeep. So that the funds are spent where the villagers see most appropriate, the communities have been empowered and are able to spend the aid on what matters most to them. This profit-sharing system is a way of giving back to the surrounding residents. As hotel visitors often visit, interact and meet with the local villagers, by giving some of the profits back they are rewarded for their hospitality and acceptance of visitors. In turn, this reduces any profit leakages from the hotel. With very little of the money spent at the hotel leaving the local economy, the local people can benefit from the tourists. As opposed to the majority of mass tourism, where much of the tourist activity is organised by outside foreign investors, this profit-sharing and focus on local employment ensures that those who live locally see the full financial advantages of tourism. This long-term development is crucial when it comes to sustainability.
In addition to this, Alila Ubud uses local crafts and products throughout the resort. For example, the soaps used at the hotel are made in a village in East Bali and the coffee is a special blend of Bali beans created just for the hotel. In doing this, Alila has supported employment at a local level. Economically, this is of great benefit to the residents as they are both able to sell to the resort and also guests who stay. The opportunity to sell produce to tourists in the hotel shop is vital to creating an economically sustainable partnership between the hotel and villagers. As long as the hotel continues to thrive and grow alongside its partners, there should be long term local economic growth as there will be a steady stream of income from the sale of produce.
Alila Ubud further contributes to the local economy by prioritising local services and labour. In its 2015 sustainability policy, Alila states that in order to promote community relationships they ‘utilise fresh local products and give preference to services from local suppliers and to those from profit-sharing co-operatives’. This is economically sustainable as it focuses on utilising the strengths of current populations whilst also improving the economic situation for future generations.
Overall, Alila Ubud is a positive economic influence within the local area. By giving back to the local people through creating employment, a place to sell produce, prioritising local materials and services and also sharing profits with those who help to create the ‘Alila Experience’, the hotel is promoting long-term economic improvement. Through keeping employment local, incomes in the surrounding areas are secure. Combined with profit-sharing, villages can directly receive financial benefits, even if they do not all work at the hotel, in return for hospitality and acceptance of visitors. This should in turn improve economic prospects and improve quality of life in the long-run.