I Made Bram Sarjana

The Board of Regional Development Planning

Badung Regency, Bali
Presentation’s Agenda
Tourism in Bali
A Case : Badung Regency
Impact of Tourism To Local Culture
Adapting From The “Wave of Change”
Conclusion
Tourism in Bali
• Bali is a small island that lies across
Indonesia's Archipelago
• This “small island”, however does not
play a small role for Indonesia
• Bali plays an important role for
Indonesia’s tourism industry
• The uniqueness of Balinese local
culture has attracted many visitors to
come
• Since 1980’s tourism has growth
rapidly
• The rapid growth of tourism industry
has shifted Bali’s economic structure
from an agro based economy to
tourism based economy.
Bali and Indonesia
Items Bali Indonesia

Area 5.780,06 km2 1.910.931,32 km2

Population (projection in 2015) 4,152,800 255,461,700

Growth of Gross Domestic Product (2015) 6,04% 4,79%

Per capita income (in million rupiah, 2015) 42,66 45,18

Number of tourist in stars hotels (estimation in 2014) 5.293.500 10.184.700

Number of star hotels (2015) 281 2197

Number of rooms in star hotels (2015) 31.596 217,474

Number of beds in star hotels (2015) 44.657 322.590

Number of foreign visitors in star hotels (2014) 5.293.500 10.184.700

Number of foreign and domestic visitors arrival 4.001.835 10.406.291

(2015)
Average length of foreign visitor’s stay in star hotels 3,55 nights 3,10 nights
(2014)

Occupancy rate of star hotels (2014) 59,88% 52,56%

Source: Statistics Indonesia

A Case: Badung Regency
• Located on southern part of Bali,
Badung regency is the gate for
international tourism to Bali
• The only airport, I Gusti Ngurah Rai
International Airport is located in
Badung Regency
• Ngurah Rai International Airport is the
third busiest airport in Indonesia.
Currently it serves 13 domestic flights
and 50 international flights.
Badung Regency Facts in 2015
Item Badung Regency
Area 418,52 km²
Population (in thousand) 616,4
GDRP Growth 6,27%

GDRP per capita / Per capita income (million 66,97

rupiah)
Number of foreign arrival to Ngurah Rai Airport 4.191.165
Number of foreign departure from Ngurah Rai 4.364.921
Airport
Number of star hotels 155
Number of rooms in star hotels 24,683
Room occupancy rate in star hotels 62,33%
Average length of stay of foreign guests in star 3,12
hotels
Source: Statistics of Badung Regency
• The era of tourism industry in
Badung Regency started in early
1980’s through the development of
Nusa Dua Tourism Resort
• The master plan of Nusa Dua
Tourism Resort was made in 1972
by Pacific International Consultant
from Japan in cooperation with
Indonesian Consultant.
• Nusa dua tourism region is an
enclave type of tourism region,
where a five star international chain
hotels were built
• The purpose of this enclave tourism
resort was to “limit” and “protect”
local community from direct
exposure of tourism.
• Nusa Dua tourism resort
apparently only attracted
certain segment, that can
not answer the demand of
many other tourist segment
• Other places outside Nusa
Dua Resort then arises
and grows rapidly
• A lot of tourism
accommodations were built
outside Nusa Dua Resort;
from a local homestay
facilities, to an international
chain hotel.
• For the past ten years,
the demands and trends
is a villa type of
accommodation
• Many other tourism
accommodations were
also built all over Bali’s
island; however in total
mostly are located in
Badung Regency.
• The rapid growth of tourism in Badung Regency in two decades
drive changes on Badung Regency’s economy, from an
agriculture based economy toward tourism based economy.
• Currently tourism industry has become the “backbone” of
Badung Regency’s economy, since around 80% of Badung
Regency’s government’s regional revenue comes from tourism
industry (hotel and restaurant taxes).
Badung Regency’s Regional Revenue Fiscal Year 2010-2014

2010 2011 2012 2013 2014

Revenue
979,194,610,828.25 1,406,298,099,449.01 1,872,346,181,795.70 2,279,113,502,085.67 2,722,625,562,620.70
(Rupiah)

Source: Badung Government Regency

11
• In order to balance economic development in Bali, from 15% to
22% of Badung Regency’s regional revenue from hotel and
restaurant tax are distributed to provincial government and
other six regencies in Bali. The money is allocated to support
tourism infrastructure and facilities, tourism promotions and
improving security.
• This type of income distribution among Badung Regency and
other regencies were implemented under the scheme of Bali as
“one island management”; where one has to support another.
 Badung Regency’s Revenue Distribution to Provincial
Government and Six Regencies in Bali Fiscal Year 2010-2016

2010 2011 2012 2013 2014 2015 2016

Amount (billion rupiah) 105,812,136,551.39 146,992,557,075.84 174,998,147,604.74 184,601,786,185.55 228,764,282,543.22 306,461,154,849.65 312,944,927,676.79

Suorce: Government of Badung Regency 13

 Impact of Tourism on Local Culture
• In spite of many gains and
opportunities created by tourism
industry, worries also arises
regarding the pollution, and
“negative” impact of tourism
toward local culture.
• There also has been a shift of
working preferences from
agriculture to tourism sector,
where young generations are
now more attracted to work in
tourism industry. This happens in
Bali in general.
Distribution of man power in Bali (%), 2015

Working Sector 2013 2014 2015

Agriculture 24,43 23,26 22,40

Manufacture 24,02 23,75 21,48

Services 51,55 53,00 56,12

Source: Statistics of Bali

• The growth of tourism also push a land conversion, from a rice
field into housing and accommodation
• In some areas hotels building were not built by using Balinese
local architecture, which not creates Balinese atmosphere;
• In urban areas, parents prefer to send their children to
expatriate schools, that makes their children learn and speak
foreign language rather than learning Balinese language
• Tourism industry also attract migrant workers coming to Badung
regency, making the average population growth in Badung
regency is higher than the average growth of population in Bali
Population, Growth and Density in Bali, 2015
Regency Population (thousand) Population Growth Population Density
(%) (thousand/km2)

Jembrana 271,6 0,67 322,64

Tabanan 435,9 0,60 519,34
Badung 616,4 2,27 1.472,81
Gianyar 495,1 0,94 1.345,38
Klungkung 175,7 0,51 557,78
Bangli 222,6 0,59 427,41
Karangasem 408,7 0,52 486,81
Buleleng 646,2 0,61 473,10
Denpasar 880,6 1,97 6.891,53
BALI 4.152,8 1,17 736,75

Source: Statistics of Bali

 Adapting from the “wave of change”
• The wave of change is the
consequences of the
development tourism
industry
• It is not possible to revert
back to the past, the
possible option is to control
and adapt with the change
• Local government has
issued regulations and
programs in order to protect
and maintain local culture
• In order to maintain the Balinese
atmosphere, government only
issued a building license when
the design meet the
requirement; implementing a
Balinese architectures
• Balinese language and culture
has become local curriculum that
is taught in public school from
elementary school to high school
• Government officials are
expected and obliged to use
Balinese language at office for
the whole day at least once a
week.
• Balinese letters are used in
Government buildings, street
signs, and tourism facilities.
• Students are obliged
to wear Balinese hand
woven as part of their
uniform
• Government officials
are obliged to wear
Balinese hand woven
as a uniform twice a
week
• The Balinese hand
woven are also
frequently promoted
during international
events
Prime Minister Shinzo Abe wearing Balinese hand woven shirt during
APEC Summit Meeting in Bali, 2012.
• Government organize a
Balinese language competition
among students and Balinese
cultural performance and
festival regularly
• Support the financing of cultural
activities organized by local
communities

Sekar Jepun Dance of Badung Regency

• Allocating seeds and
fertilizer subsidies for
farmers
• Freeing the land and
building tax for farmers
in order to attract young
generations to work as
farmers
• Creating farming
activities as tourism
attraction
Conclusions
• The main source of generating power of tourism development in
Bali is Balinese unique local culture which rooted in agriculture
• Tourism has driven a change toward Balinese social and
economic life
• Rapid change has produced some degrees of negative impact
toward local culture
• The option is not to refuse tourism and revert back to the past
• Policies, regulations, programs has been issued in order to
adapt with change, however more control are needed to ensure
the successful to adapt with the wave of change