What is the solution to Bali's over tourism? Is it time for Bali 2.0?

A radical solution to Bali's over-tourism… creating Bali 2.0

In 2024, Bali welcomed a staggering 6.33 million international visitors—surpassing its pre-pandemic peak of 6.28 million in 2019. This figure alone represents nearly half of all international tourists to Indonesia this year. While tourism continues to fuel Bali’s economy, it has also pushed the island to a breaking point. Traffic congestion, pollution, inadequate waste and water management, and degradation of Bali’s natural and cultural assets have reached critical levels.

Simply expanding infrastructure—such as building a new airport in Bali—won’t be enough to address the deeper problem: Bali’s tourism model is no longer sustainable.

That’s why Indonesia needs to consider a radical but pragmatic solution: developing a new tourism hub—Bali 2.0—from the ground up.

Lessons from Mandalika

The Indonesian government has already begun exploring the concept of a “next Bali” with the development of Mandalika, a government-backed luxury tourism zone on the island of Lombok. The Mandalika project has attracted international investment, including from the Asian Infrastructure Investment Bank (AIIB), and the government hopes to draw in top-tier brands such as Pullman, Paramount, and Club Med.

But despite Mandalika’s potential, the project has faced serious challenges, including allegations of human rights violations related to land acquisition. Adding to the complexity, a Grand Prix motorcycle circuit is being constructed at the site—hardly a natural fit with the image of a peaceful, tropical getaway. The experience of Mandalika underscores that while the ambition for Bali 2.0 exists, the execution must be more strategic, inclusive, and sustainable.

Why Bali 2.0 is needed

Rather than continue to overburden Bali or replicate its flaws elsewhere, Indonesia has a chance to build a new tourism model from the ground up—one that avoids the mistakes of the past and sets a benchmark for the future. With more than 17,000 islands across its archipelago, Indonesia is well-positioned to identify a location that can serve as Bali 2.0: a purpose-built destination that delivers long-term economic growth while preserving environmental and social integrity.

Key ingredients for Bali 2.0

1. Natural appeal with strong tourism potential

   The success of Bali 2.0 will rely first and foremost on choosing a location of genuine natural beauty. White sand beaches, lush greenery, coral reefs, waterfalls or unique landscapes are essential drawcards. The destination must stand out enough to capture the interest of international tourists from day one.

   
   

2. Supportive legal and development framework

   To expedite development, the Indonesian government will need to establish a special investment and regulatory environment. This may include tailored legislation or fast-track planning and approvals processes, along with a clear and transparent governance structure to manage the project effectively.

   
   

3. Airport access or development potential

   Bali 2.0 must be easily accessible. Ideally, the chosen site will already have an international airport nearby. Alternatively, it should have a domestic airport that can be upgraded. As a last resort, suitable land must be available to construct a new international airport. Without this access, large-scale tourism will be difficult to sustain.

   
   

4. Local community support

   A supportive and engaged local population is critical. Community buy-in will allow for a smoother development process and ensure that local people benefit from tourism through employment, business opportunities, and infrastructure improvements. Education and consultation should be central to the early planning stages.

   
   

5. Strategic branding and international appeal

   From the start, the Bali 2.0 project must be built around a strong, simple and globally appealing brand. The name should be easy to pronounce and remember, and the destination’s story must resonate with a wide audience. Sustained international marketing campaigns will be required to generate interest, trust, and long-term loyalty.

   
   

6. Attractive investment conditions

   To draw in major hotel chains, developers, and infrastructure providers, the project must offer a compelling investment story. This includes reliable infrastructure plans, long-term land rights, and clear returns. Incentives such as tax breaks, subsidies, or co-investment models could help kick-start initial interest and anchor developments.

   
   

7. Safeguards against inefficiency and corruption

   One of the greatest threats to major infrastructure projects is delay or misuse of resources. Bali 2.0 must be a showcase of clean, efficient and transparent planning. Independent oversight, clear procurement standards, and strong anti-corruption frameworks should be established from the beginning to maintain confidence and credibility.

Conclusion

Bali remains one of the world’s most beloved holiday destinations, but it is under severe strain. Simply patching its infrastructure or building a new airport won't fix the systemic challenges caused by over-tourism. The Indonesian government has the opportunity—and the imperative—to take a bold step forward by creating a new, sustainable, world-class destination: Bali 2.0.

The Mandalika experiment shows there’s both vision and appetite for such a transformation. But to succeed, the next attempt must be better planned, more inclusive, and sustainably built from day one. With the right mix of natural appeal, investor incentives, community support, and government leadership, Bali 2.0 could become a global model for responsible tourism in the 21st century.