Bali’s Tourism Crisis: How Overcrowding and Mismanagement Are Threatening Paradise— Here’s What to Know Before Booking Your Tickets

Published on November 24, 2025

Bali, the tropical haven long revered as a dream destination, is now grappling with a serious issue: overcrowding. In 2024, a record-breaking 6.3 million international tourists visited this Indonesian paradise, pushing the island’s infrastructure and environment to their limits. Bali’s tourism boom, once celebrated, is now revealing cracks in the very essence of the destination’s allure. From traffic chaos to environmental degradation, it seems that Bali’s charming allure is increasingly overshadowed by its overwhelming popularity. What was once a tranquil paradise is rapidly transforming into one of Southeast Asia’s most congested and unsustainable tourist hotspots. So, what does this mean for the future of Bali’s tourism?

Tourism: A Blessing or a Curse?

For decades, Bali has been an iconic paradise for travellers seeking a perfect blend of nature, culture, and luxury. However, the past few years have seen a sharp rise in visitors, with 6.3 million tourists arriving in 2024. While this surge should have been a reason to celebrate, it has brought with it unsustainable growth that is starting to erode the very things that made Bali unique. The island, which once offered serenity and breathtaking landscapes, now struggles with overcrowded streets and pollution. In tourist hotspots like Ubud, Kuta, and Seminyak, the once calming atmosphere has given way to congested areas filled with tourists, plastic waste, and rows of sunbeds occupying Bali’s pristine beaches.

The True Cost of Overcrowding: Bali’s Strained Resources

As Bali welcomes more and more visitors, the infrastructure simply isn’t keeping up. The road between Denpasar and Ubud, two of Bali’s most popular areas, has become notorious for its traffic jams. What was once a quick route is now plagued with delays due to the sheer volume of vehicles. Not only does this affect the tourists, but it also disrupts the daily lives of the Balinese people. Rice terraces, once a peaceful sight for visitors, now face the pressure of being trampled on by countless visitors snapping pictures for their social media profiles. Bali’s famous temples, like Tanah Lot and Besakih, are also experiencing the strain of too many visitors. The sacred spaces are now flooded with selfie sticks, and sacred rituals are often overshadowed by tourists eager to capture every moment.

Is Bali Suffering from Overtourism?

The real issue is not the number of tourists, but the lack of effective management. Experts agree that Bali is not necessarily suffering from an overabundance of tourists, but from the island’s inability to manage this influx effectively. While other destinations have succeeded in limiting tourism numbers, Bali’s government and tourism authorities have continued to aggressively promote the island without fully considering its capacity to accommodate so many visitors. Unregulated development is another major problem, with illegal villas and undocumented businesses springing up across the island, creating further strain on resources.

The Role of Digital Nomads and Foreign Residents in Bali’s Overcrowding

Bali is also home to a growing number of digital nomads and long-term foreign residents. While these individuals contribute to the island’s economy, they also add to the complexity of its overcrowding issues. Many of them fail to adhere to the island’s visa regulations and local laws, operating businesses such as yoga retreats and bars without proper permits. These issues have sparked tension between the local population and the expatriates, as the island’s local culture is increasingly perceived as being commodified.

The Backlash: Decline in Bookings for 2025 and Beyond

As more and more tourists experience the effects of overcrowding, bookings for Bali in 2025 and 2026 are already seeing a decline. European and Australian travel companies are reporting a drop in interest as tourists search for quieter alternatives. Places like Lombok, Sumba, and even Sri Lanka and the Philippines are gaining popularity among travellers seeking a more peaceful experience. The reality is that once a destination becomes synonymous with overcrowding, it often loses its appeal, and Bali is beginning to face this backlash.

Could Bali’s ‘Death Spiral’ Be Avoided?

Historically, destinations that fail to manage mass tourism effectively experience a downward spiral. The rise in visitor numbers leads to a decline in satisfaction, which, in turn, causes a drop in repeat visits and word-of-mouth recommendations. This leads to even more budget-conscious tourists seeking cheap options, further diluting the quality of the tourism experience. In Bali, reports show that hotel rates in Canggu and Ubud have fallen by 10-15% during the off-peak seasons compared to previous years. Bali now risks entering a vicious cycle, where the more tourists it attracts, the less appealing it becomes.

What Can Be Done?

There is hope for Bali, but only if decisive action is taken now. Bali could learn from other destinations like Bhutan, which focuses on high-value, low-volume tourism, or Palau, which enforces strict environmental standards. Bali needs to act fast by:

• Implementing strict visitor caps in the southern regions and encouraging tourists to explore the less-visited areas like the north and east of Bali.
• Introducing a universal tourist tax that is paid on arrival and used for conservation efforts and local development.
• Tackling illegal development and foreign visa violations with clear consequences.
• Encouraging local involvement by granting villages the power to reject unsustainable development projects.

These measures would allow Bali to regain control of its tourism and shift from quantity to quality, ensuring that its natural beauty and culture remain intact.

What Travelers Should Know:

• Travel tips for Bali: If you’re planning a trip to Bali, consider travelling during the shoulder season to avoid overcrowding.
• Respect the local culture: Be mindful of local customs, especially when visiting sacred temples or rural areas.
• Explore beyond the popular hotspots: Discover less touristy areas like Lombok or the quieter parts of Bali’s north.