Tourism has several impacts on many different aspects of Bali’s society. Tourism has impacted on the already existing, social, economic, cultural and environmental processes of the island. For example, as a result of tourism the pace of urbanisation has rapid increased and tourism has sped up the process of economic development.
There are large economic consequences on the economy of Bali. One significant impact on Bali is the foreign exchange earnings. Tourism is the fourth-largest income earner for Indonesia at around US 5.5 billion (2003). Tourism is very labour intensive, with the influx of tourists more services are required thus leading to more creation of jobs, even though it increases job opportunities and higher paying jobs, the negative aspect of it is that most high earning jobs go to foreigners and most locals are given low paying jobs.
Infrastructure is another aspect which is influenced by tourism. With increasing population densities this has put enormous pressure on the already existing infrastructure such as transportation, communications, drainage, etc. Another major negative impact on Bali is that the ownership of tourism resources are increasingly becoming owned by non-Balinese, this has led to a lot of culture and local presence being lost as more and more investors start taking over the island.
There are also environmental consequences on Bali as a result of tourism. One effect is the water and waste pollution created by hotels. Hotels use a lot of scarce water and are responsible for disposing of their waste. But hotels frequently dump their waste into the sea, sewage is often pumped a hundred metres offshore, this has an disastrous impact on marine and coral life. A report in 2006 suggested that nearly 20% of Bali’s reefs had been destroyed and a further 55% were in poor condition. Another very negative impact on Bali is use of insecticides and fertilisers by resorts. Resorts frequently use these to keep their grounds and gardens...
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