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Overtourism.. How does it affect host countries?

Overtourism.. How does it affect host countries?

The latest is Indonesia, which is moving to halt construction of more hotels and nightclubs on the tropical holiday destination of Bali, citing overcrowding and the conversion of rice fields into luxury villas, angering residents of the popular island.

The regional government of Bali, known for its beaches, vibrant culture, rich marine biodiversity and surfing spots, has asked the central government to suspend new commercial construction in four popular tourist areas, but the timing and duration of the ban have not yet been determined, according to the Financial Times.

At a press conference this week, the head of the marketing department at the tourism office said: BaliIda Ayu Indah Yustikarini said the Bali provincial government has proposed a moratorium on the construction of hotels, villas, nightclubs and beach clubs in four crowded areas, explaining that the aim is to encourage a good tourism industry.

President Joko Widodo’s administration, which would make the final decision on any temporary halt, said it approved such a move.

According to the local news site Detik, Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, confirmed that there will be no more villas in rice fields so that Bali can become a clean, environmentally friendly, quality destination, explaining that the moratorium could be five years, or ten years, based on an evaluation.

  • Bali thus joins a string of other tourist destinations seeking to reduce the impact of overtourism.
  • Greece said this month it would crack down on short-term holiday rentals and cruise ship traffic.
  • While Italy is considering a sharp increase in tourism tax.

The newspaper indicated that Bali, one of Indonesia’s 17,000 islands, has become the country’s most prominent tourist attraction, and the success of the book “Eat, Pray, Love” published in 2006 and the film adapted from it starring American actress Julia Roberts helped cause a tourism boom there.

She added that the island attracted 3.5 million foreign visitors between January and July of this year, an increase of 22 percent compared to the same period last year, according to official data.

The island’s growing popularity has sparked negative reactions, the newspaper said, with Balinese residents often complaining of traffic congestion, crime and disrespect for Indonesian culture. Indonesian officials also say many visitors overstay their visas and run businesses on tourist visas.

Hundreds of foreigners are deported from Bali every year for overstaying their visas and other illegal activities, the newspaper reported. Last year, a Russian man was deported for standing naked on Mount Agung, one of Bali’s holiest sites, and this year a British man was arrested for stealing a truck and crashing it at the airport.

“Many locals feel that Bali’s unique culture and traditions are being commercially exploited or diluted to cater to mass tourism,” the newspaper quoted Kadik Adnyana, founder of the Bali Villa Rental and Management Association, as saying.

He added that the rapid construction of hotels, resorts and villas has put pressure on local infrastructure, and that this unfettered development is often seen as damaging Bali’s natural beauty and causing unsustainable growth.

Commercial projects catering to tourists have mushroomed across Bali, with 541 star-rated hotels last year, up from 113 in 2000. Lush rice fields have been destroyed to make way for luxury accommodation, with villa rentals in particular becoming more popular.

According to the newspaper, the CEO of the Walhi Environmental Group, Made Krishna Dinata, confirmed:

  • The construction moratorium should have been implemented long ago, as too many buildings have been built in Bali, and there should be a firmer halt to infrastructure development plans.
  • Bali is on the verge of facing an environmental crisis due to the impact of commercial developments and infrastructure.
  • Reduced rice fields and mangrove areas, as well as coastal degradation, could make Bali more vulnerable to disasters.

Despite growing anger among the population, the Indonesian government has sought to capitalize on Bali’s popularity, the newspaper reported. Indonesia has offered more flexible visas to attract digital nomads, and authorities are considering a plan to make Bali a hub for family offices as an alternative to Singapore and Hong Kong.

She added that Bali residents say they would prefer the government to do more to enforce rules aimed at preventing illegal activities by tourists, increasing cultural awareness and protecting local communities.

“While tourism generates significant revenue for Bali, many locals feel that the profits largely benefit foreign investors and big corporations, not local businesses and communities,” Kadik said.

A blessing for governments and a curse for indigenous peoples

In exclusive statements to Sky News Arabia Economy, Bilal Shuaib, director of the Vision Center for Economic Studies, explained that the phenomenon of “excessive tourism” has gained momentum in recent years, although its beginnings date back to the 1960s. This phenomenon has witnessed a noticeable increase between 2017 and 2018 as a result of the global tourism boom.

Shoaib added that overtourism is an advantage for governments due to the economic returns, but it poses a major challenge for local residents, as the influx of tourists puts pressure on infrastructure and state facilities, including traffic congestion, which negatively affects the daily lives of residents.

Shoaib pointed out that there are many factors that attract tourists to certain areas, including: Advanced infrastructure, historical monuments, beach tourism and coastal resorts, in addition to cultural tourism attractions such as museums and monuments, as well as religious tourism, commercial tourism, etc.

Another factor is the devaluation of the currency in some countries compared to the US dollar, which increases the flow of tourists and contributes to increasing governments’ foreign currency income.

The availability of these tourism components would support the position of a particular country on the tourism map and enhance the flow of tourists to it.

Exploiting the phenomenon

Economic researcher and business intelligence analyst Yassin Ahmed explained in exclusive statements to the Sky News Arabia Economy website that excessive tourism has a major impact on host countries, most notably the deterioration of the local environment, the high cost of living and the congestion of cities, which affects the local population.

He pointed out that among the countries suffering from excessive tourism are Italy and some East Asian countries, so there is great difficulty in managing the number of tourists there, which negatively affects the lives of citizens.

He stated that on the other hand, some countries can exploit this phenomenon in countries suffering from excessive tourism to attract tourists and increase the number of tourists coming to them, explaining that this is done through:

  • Marketing destinations with fewer tourists, and exploiting and promoting all places.
  • Promote sustainable tourism by developing strategies to protect the environment and historical sites.
  • Focus on the country’s cultural and historical tourism, and benefit from its history in attracting tourists interested in history and culture.
  • Improving services and infrastructure by providing high-quality facilities and services to attract tourists who wish to avoid crowded places and are looking for destinations that provide them with comfort, tranquility and quality, with the possibility of offering competitive prices for tourist places.
  • Targeting new tourism markets, by directing marketing efforts away from countries that are beginning to feel the effects of overtourism, such as Italy and some Asian countries, and exploiting other countries by marketing themselves as an alternative.

Factors contributing to the spread of overtourism

For his part, the Director of the Al-Ghad Center for Strategic and Economic Studies, Dr. Sayed Khader, said in exclusive statements to the Sky News Arabia Economy website that excessive tourism is a phenomenon that greatly affects host countries, as it can lead to a set of negative effects on the environment, economy, and culture.

He explained that the most important factors contributing to the phenomenon of excessive tourism are:

  • Intensive marketing and large advertising campaigns promoting tourist destinations.
  • The development of transportation, ease of travel and the availability of cheap flights
  • Technology and online booking platforms that make travel planning easier.
  • Social trends
  • Desire to share travel experiences on social media
  • World Events
  • Organizing major events such as the Olympic Games or major exhibitions.

He reviewed some of the means through which some countries that have the potential to attract tourism can be exploited in order to attract tourists from countries that suffer from imposed tourism, and to enhance the tourism sector, which are:

  • Delivering unique experiences.
  • Develop tourism offerings that highlight local culture and traditions.
  • Improve infrastructure and invest in tourist facilities and public transportation to make the experience more comfortable.
  • Sustainable Tourism Marketing
  • Focus on tourism that preserves the environment and supports local communities.
  • Offer incentives Offer discounts or special offers to attract tourists from crowded countries.
  • Collaborate with tourism organizations and work with travel agencies to promote less crowded destinations.
  • Organizing cultural events and holding festivals and activities to attract visitors interested in culture.
  • Adjust prices and make them competitive compared to other countries.
  • Leveraging technology to facilitate booking and communication with tourists



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