Bali’s Hidden Gem: The Rise of Long-Stay Residential Tourism and Its Impact on the Island’s Future

Published on December 9, 2025

Bali, the popular island paradise, has long been associated with mass tourism. Visitors flock to the island to enjoy its pristine beaches, rich culture, and vibrant nightlife. However, in recent years, there has been a noticeable shift away from short-term, high-volume tourism and towards more sustainable and consistent long-term tourism. This shift is expected to reshape Bali’s tourism industry, providing a new economic model that benefits local communities, reduces environmental stress, and allows visitors to engage in deeper cultural immersion.

As the tourism industry recovers from the pandemic, Bali has seen a significant increase in international visitors. According to official statistics, Bali will welcome more than 6 million foreign arrivals in 2024, with further growth expected in the coming years. However, as the number of tourists increases, there is a growing trend among visitors to stay longer. Instead of the typical tourist who comes for a few days, long-term residents, digital nomads, expatriates, and families are now choosing Bali as a base for extended stays.

This long-term trend, known as “residential tourism”, represents a positive shift in the island’s tourism dynamics. The rise of this quieter, more stable form of tourism is attracting a new type of visitor while also changing how Bali interacts with the rest of the world.

The Appeal of Long-Stay Tourism for Bali

Residential tourism presents numerous advantages, both for visitors and the island’s local communities. For the tourists themselves, Bali offers an idyllic environment, perfect for those seeking a slower pace of life. With its blend of natural beauty, warm weather, cultural richness, and affordable living costs, Bali is an attractive destination for long-term stays. Remote workers, retirees, and families find that the island’s lifestyle suits their needs, offering a balance between work and leisure while also providing a sense of belonging within a community.

From an economic perspective, long-stay tourism benefits Bali by creating a more stable and predictable flow of income for local businesses. Unlike traditional mass tourism, which is seasonal and subject to fluctuations in visitor numbers, long-stay residents contribute to the local economy throughout the year. They rent villas, dine in local restaurants, shop at markets, and engage with services such as wellness centres, spas, and co-working spaces. This steady expenditure helps boost Bali’s economy without overwhelming its infrastructure.

Moreover, long-stay residents often integrate more deeply with the local community, learning the language, respecting traditions, and even participating in cultural events. This type of engagement fosters a more sustainable tourism model, where both visitors and locals benefit from the exchange of ideas, skills, and resources.

Benefits to the Local Economy and Environment

The economic benefits of residential tourism extend beyond just increased spending in local businesses. Long-term residents often rent villas or houses on a long-term basis, which brings a stable income to property owners and contributes to the real estate sector. In addition to spending on accommodation, these residents typically hire local staff, such as housekeepers, gardeners, and drivers, further enriching the local workforce.

This model contrasts with short-term tourism, where tourists primarily spend money on accommodations, restaurants, and attractions, with little engagement with the local economy outside the main tourist areas. With residential tourism, however, there is an increased opportunity for local artisans, small businesses, and service providers to thrive. For example, many long-term residents prefer to purchase locally sourced goods, dine at small family-run restaurants, and engage in community-driven experiences, rather than relying on large tourist resorts and international brands.

The environmental impact of long-stay tourism is also considerably lower compared to mass tourism. Short-term tourists, due to their transient nature, tend to put significant strain on Bali’s resources — from waste generation to water and electricity consumption. Long-term residents, however, tend to adopt more sustainable living practices. They are more likely to use local transportation, cook their meals at home, and integrate into the local waste management systems, thereby reducing their overall environmental footprint.

The Challenges and Risks of Residential Tourism

While long-stay tourism offers numerous benefits, it is not without its challenges. One potential downside is the rising demand for real estate. As more foreigners flock to Bali for long-term stays, property prices have increased, making it more difficult for locals to afford homes. This could lead to the gentrification of certain areas, where wealthy expatriates and digital nomads outbid local residents for prime properties.

The influx of foreign residents could also lead to a shift in the island’s cultural landscape. In some areas, long-term expatriates may form enclaves, limiting interaction between locals and foreigners. To ensure that residential tourism benefits both the local population and visitors, it is crucial that proper regulations are put in place to promote cultural integration and maintain a balance between foreign and local interests.

Furthermore, while the environmental impact of long-term tourism may be lessened compared to short-term visitors, the overall demand for resources still needs to be carefully managed. Bali’s infrastructure, including water supply, waste management, and transportation systems, will need to keep pace with the growing number of long-term residents. The local government must take a proactive role in ensuring that these resources are used sustainably and that the island’s natural beauty is preserved for future generations.

Bali’s Long-Term Tourism Strategy: A Balanced Future

To manage the growth of residential tourism, the Balinese government must implement comprehensive policies and regulations. This includes zoning laws to ensure that residential developments are balanced with environmental protection efforts, as well as measures to ensure that the economic benefits of long-stay tourism are shared fairly with local communities. Additionally, fostering cultural exchange programmes and providing incentives for businesses that engage in sustainable practices will help maintain Bali’s charm and cultural heritage.

At the same time, the rise of long-stay tourism opens new opportunities for the tourism industry. Property developers and real estate investors can tap into the growing demand for long-term rentals, while local businesses can cater to a new wave of residents who seek authentic, community-driven experiences. For tourism operators, offering packages tailored to long-term stays, such as extended tours, wellness retreats, and cultural immersion programmes, can provide a unique selling point in an increasingly competitive market.

A Sustainable Path for Bali’s Tourism Future

Bali’s transition to residential tourism represents a bright and sustainable future for the island’s economy. While mass tourism has long been a driving force, the increase in long-stay visitors provides an opportunity for Bali to diversify its tourism offerings, promote local businesses, and ensure a more stable and sustainable economic future. As the island recovers from the pandemic’s effects, long-term residents can play an important role in reshaping Bali’s tourism landscape, providing a more balanced approach to growth that benefits both visitors and locals.

Bali can maintain its cultural heritage and natural environment by embracing this quieter, more sustainable form of tourism. The future of Bali’s tourism industry depends not on the number of visitors, but on the quality of their experience and their long-term contribution to the island’s community.