This essay looks to examine the island of Bali, that is a Hindu-majority land occupying space in a Muslim-majority nation, Indonesia. However, rapid tourism growth has led to foreign resort development that disregards indigenous values and potentially disrupt the spiritual qualities associated with the many sacred sites scattered across the island. This gentrification exacerbates Western exoticisation of Balinese-Hindu spirituality into a commodified aesthetic. This essay investigates the gentrification of Bali, focusing on how the island’s landscapes, culture, and local communities are impacted by rapid tourist-driven developments. In particular, careful attention is given to the transformation of Bali’s traditional spaces, including religious sites, and how these changes reshape local identities and environmental dynamics. This paper traces broad time periods that have contributed to, or influenced the gentrification of Bali, and the modern-day consequences. Thus, this paper addresses the question, “How has gentrification altered Bali’s cultural and sacred landscapes, and what are the implications of these transformations on Balinese identity, cultural preservation and environmental sustainability?”
1. Introduction
Set against the backdrop of scaling rice fields that glisten in the mornings and have paddy field workers dotting the terraces, are luxurious five-star resorts that line the region. With captivating views for unbeatable prices, Bali is a dream destination for travellers around the world who frequent this city for its beautiful landscapes, architecture and friendly inhabitants.
Bali, known around the world as the "Island of the Gods" (Fahyan, 2024), holds a unique position within Indonesia, a predominantly Muslim nation, due to its Hindu-majority population and being deeply rooted spiritual and religious traditions. Bali has long captivated visitors with its rich cultural heritage, intricate temples, lush rice terraces, and vibrant ceremonies that invite onlookers to observe and participate. For the Balinese people, spirituality is woven into daily life and manifests in the physical world, through sacred sites, temples, and natural landscapes that are revered, and both embody cultural values and beliefs that tie them to their ancestors (Ardhana, 2017). However, Bali’s identity as both a sacred place and a tourist paradise has led to increasing tensions as global interest and tourism reshape the island. Over the past few decades, the surge in tourism has spurred an unprecedented wave of development, with government-supported foreign investors (Reuters, 2024) flocking to Bali to capitalize on its ever-growing popularity and natural resources. This has accelerated the process of gentrification, where traditional spaces and the local ways of life are compromised and transformed to cater to an affluent, largely international clientele.
Gentrification is a demographic and economic shift that displaces established working-class communities and communities of colour in favour of wealthier newcomers and real estate development companies (National Geographic Society, 2023). However, gentrification in Bali differs from that of conventional urban contexts; in the Balinese context, I redefine it as the commodification of both the land and its cultural significance. In a bid to attract and accommodate to foreign tourists, developers have reshaped the island’s landscapes, often disregarding local customs and ecological practices. Balinese villages, sacred temples, and even rice terraces are increasingly subject to commercial interests, resulting in the gradual erosion of these spaces. Local populations are faced with the impending threat of displacement as land that was once used for agriculture or religious practices is now being repurposed for luxury resorts, private villas, and commercial complexes, threatening not only the cultural fabric of Balinese society, but also resources such as land and water that is strained (Paulo & Pardomuan, 2024) to accommodate the demands of mass tourism.
This essay examines the multifaceted impacts of gentrification on Bali’s cultural and sacred landscapes, with a focus on how religious spaces are particularly affected. By analyzing the changes brought about by tourism-driven and investment-driven gentrification, this essay aims to highlight the broader consequences of this transformation for Balinese identity, cultural preservation, and environmental sustainability. Bali’s metamorphosis over the span of just decades reveals the complex dynamics of global tourism and raises critical questions about the preservation of cultural and ecological integrity in a world increasingly shaped by market-driven development. On a broader front, I hope to gain insights into what this represents for the future of other Southeast Asian islands and cities that are also rapidly gaining recognition as idyllic tourist destinations.
2. Historical and Cultural Context of Bali
Bali’s landscapes are deeply intertwined with its cultural and religious heritage, forming a unique geography where the natural environment and spiritual practices coexist harmoniously. The island’s Hindu heritage, distinct from the predominantly Muslim population in the rest of Indonesia, sets it apart and makes Bali a unique cultural enclave. Although about none-tenths of Indonesians identify as Muslim, Hindus (accounting for less than 2% of the Indonesian population), are the dominant religion in Bali, at 87% of Bali’s population (Warman et. al., 2024). Although restrictions from the Indonesian Ministry of Religious Affairs had initially constrained the boundaries of the religion (since the Ministry had previously defined an acceptable religion to be monotheistic) and those not belonging to an officially recognised religion were denied citizenship, this has been since amended to recognise Balinese Hinduism as an official religion of the nation (McDaniel, 2013).
At the heart of Bali’s spiritual landscape are the Nine Directional Temples, or Pura Kahyangan Jagat each dedicated to specific deities and placed strategically across the island to protect it from negative forces or attacks from any direction and repel them. The compound of a Pura itself is divided into three key zones: the Nista Mandala (the entrance), Madya Mandala (the central worship area) and Utama Mandala (the sacred zone storing sculptures). The temples of Kahyangan Jagat are carefully scattered across the island according to the 9 cardinal directions (the 8 wind directions and a central temple) (Hernanto, 2019). These Puras not only serve as spiritual sanctuaries but also act as cultural landmarks, embodying the Balinese belief in the interconnectedness of the human, natural, and spiritual worlds. This arrangement, along with many other aspects of Balinese life and rituals is informed by Tri Hita Karana or “three reasons for prosperity”, a philosophical concept that emphasizes harmony between humans, nature, and the divine, guiding how the Balinese interact with and shape their environment. Moreover, Balinese communities maintain a connection to the landscape through agricultural practices, especially the iconic rice terraces that often dot the Instagram feeds of tourists. The Subak system, a centuries-old water management system for rice cultivation and a UNESCO Heritage monument, reflects the same commitment to harmony and mutual support, governed by egalitarian farming practices. This system not only allowed Bali to become “the most prolific rice growers in the archipelago” despite the dense population, but also fosters a cooperative relationship with the land, where rituals, festivals, and offerings are integral to agricultural practices. In this way, the Balinese landscape becomes a “living temple,” where religious beliefs and ecological knowledge can coexist, guiding the rhythms of the daily lives of the Balinese (UNESCO, 2012).
3. Tourism Boom and Foreign Investment
Tourism can be understood as a socio-economic phenomenon contributing to the economic development of a country. Its key goals can be thought of in two aspects: increasing employment opportunities for locals, and generating revenue to contribute to the local economy. While tourists have the “desire to travel […] and encounter different cultures” (Hitchcock et.al., 1993), there is a need for significant efforts to protect the natural heritage present in a site (which are non-renewable sources), against the interests of economic growth and “modernism” (Islam, 2020). The surge in tourism in Bali began during the 1990s, driven by the “slump in oil revenues in the 1980s”, requiring a substitute industry to provide “foreign exchange”. Despite the terrorist attacks of 2002 and 2005, given the staggering contribution of Bali’s tourism to Indonesia’s GDP, it was of utmost importance for the Indonesian government to restore the island’s reputation as a tropical paradise and a cultural destination unlike any other in Southeast Asia (Gurtner, 2016). This was achieved through “campaigns that included discount packages, the establishment of social media platforms and market diversification” (Putra, 2010). Ultimately, the goal was to cement Bali’s appeal as an idyllic and exotic getaway that is also safe to visit. The rebranding attracted travellers initially from Western nations and later around the world, with visitors enchanted by its scenic beaches, rice terraces, unique Hindu temples, and the vibrant local arts scene. With the government and investors recognizing Bali’s potential for large-scale tourism, foreign investment has led Bali becoming a symbol of vibrancy and thriving economic prospects in Southeast Asia, marking a shift from the agriculture-centred economy to tourism and services economy.
Indonesia’s Decentralisation policies, though meant to promote better delivery of government services and raise level of government accountability, has empowered “local governments to impose and collect their own taxes”. With land taxes based on the market value of the land rather than land use, farmers in “the vicinity of tourist hotspots” are dealt with the situation of exorbitant taxes and are forced to sell their land (Cole & Brown, 2015). This impacts the spatial and social fabric of Balinese communities as locals, whose livelihoods had previously depended on farming or traditional trades, found themselves transitioning to employment in the tourism industry, often as service workers in hotels, restaurants, or retail. This shift not only altered local labour dynamics, but also began to reshape the cultural landscape of Bali itself. Balinese land, which was once revered and arranged in accordance with Balinese Hindu cosmology, became redefined by capitalistic gains and global tourism demands. Canggu’s rice terraces have given way to hotels and bars, and roads that were meant for bicycles and motorbikes have been misappropriated to squeeze cars and tour buses to transport the hoards of tourists who frequent Bali. Water scarcity – a result of the tourism boom – has been found to weaken the “social and religious structures of the Subak system”, as, diverting water around tourist developments has been thought to fracture the Subak boundaries. This has forced Subak water managers (known as pekaseh) to either align themselves with the tourist developments or sell their water resources to “bottled water companies” (Cole & Brown, 2015). It is undeniable that the influx of foreign investment, while creating economic opportunities, has also introduced an entirely new set of priorities focused on profit generation and tourist satisfaction, conflicting with local cultural practices that are integral to Balinese life.
4. Gentrification of Religious Spaces
The influx of tourism in Bali has not only transformed agricultural and residential spaces, but has also deeply impacted its religious spaces, which are at the core of Balinese cultural identity. Traditionally, Bali’s Hindu temples—such as the iconic Besakih Great Temple, and the Uluwatu Temple overlooking sea cliffs—are deeply revered, serving as both spiritual centers and communal gathering places for ritual practices. These sacred sites are designed and situated according to Balinese cosmology, embodying centuries-old spiritual beliefs that connect the island’s people to their gods, ancestors, and natural environment. However, as tourism has grown, these once-secluded sites have become prime attractions, altering their meaning and accessibility. For example, Tanah Lot Temple leaders are working on installing a stage to put on cultural shows for tourists, a decision that was made in view of the tourist influx (The Bali Sun, 2024b). Major temples, initially intended for ceremonial gatherings and acts of devotion, are now repurposed as tourist destinations where rituals may occur alongside photoshoots of tourists awkwardly donning a borrowed sarong and religious festivals compete with the demands of tourism schedules.
The commodification of Balinese Hindu spirituality is evident in how temples are marketed as exotic and picturesque backdrops for travellers. Temples such as Tanah Lot and Uluwatu have become highly sought-after sites for weddings, photo shoots, and cultural performances staged for tourists. At Uluwatu, the kecak dance—traditionally a spiritual performance connected the main story from the Hindu epic, the Ramayana with roots in an ancient ritual “where dancers fall into a trance to repel evil spirits” — is now regularly performed for tourists as part of a ticketed sunset attraction (Bali Untold, 2024). This shift, while bringing financial benefit to handle the strains of the tourist boom and taxation laws, has repurposed sacred rituals into entertainment spectacles, often disconnected from their original meanings and contexts. As a result, what was once a form of religious expression and devotion is now packaged as a “cultural experience,” impacting both the integrity of the ritual and the space in which it occurs. The significance of these spaces as places of worship diminishes, as religious events are sometimes rescheduled or condensed to accommodate tourist visits, thereby prioritizing external interests over local religious needs.
Moreover, these sacred sites have become increasingly commercialized in their surroundings, with souvenir shops, cafes, and ticket booths built in close proximity to temple grounds. Tanah Lot, for instance, is surrounded by a bustling marketplace where vendors sell souvenirs, clothes, and food, transforming the path into the temple into a noisy and packed crowd that often disrupts the temple’s serene atmosphere (Tanah Lot Bali, 2021). This commercialization not only alters the physical experience of visiting the temple but also affects the spiritual atmosphere that devotees who visit the temple for spiritual purposes once sought. The temple spaces are often filled with visitors taking photographs or capturing videos, with little regard for the spiritual protocols or significance of these places. Local residents, including young Balinese academics and entrepreneurs have voiced concerns over this shift, noting how they feel like “they are watching the island’s fragile cultural identity and ecosystems disappear before their very eyes” (The Bali Sun, 2024a).
Furthermore, the commodification of Balinese spirituality has led to the exoticization of the island’s Hindu practices, presenting a simplified, sometimes stereotyped version of Balinese culture that caters to Western expectations. Balinese spirituality is marketed as mystical and otherworldly (King, 2016), often reinforcing orientalist perspectives that view the island as a place frozen in time, disconnected from modern complexities. This portrayal not only distorts the true nature of Balinese Hindu religion, but also places pressure on locals to perform their culture in ways that appeal to tourists, potentially leading to a loss of authentic practices. The tension that arises between religious reverence and economic demands thus becomes a pressing issue whose burden is bore by locals, as sacred spaces and spiritual traditions are reshaped by external perceptions of what constitutes “authentic” Balinese culture.
5. Cultural Commodification and Local Identity
The rapid expansion of tourism in Bali has led to the commercialization of the island’s cultural practices, architecture, and arts, transforming traditional elements of Balinese identity into commodities packaged for foreign consumption. Traditional dance performances, such as the Barong and Legong dances, which once held specific religious and cultural significance, are now routinely staged for tourists in hotels, restaurants, and open-air theaters. These performances, which were historically reserved for temple ceremonies and communal gatherings, have been adapted to fit tourist schedules and expectations, often stripped of their ceremonial elements to create an entertaining, “exotic” experience that aligns with Western perceptions of Balinese mysticism (Huffington Post, 2017). Restaurants that once featured authentic Balinese and Indonesian cuisine have been taken over by Westernised cafes marketed at “Instagrammable spots”. This shift from spiritual expression to entertainment reflects a larger trend where Balinese identity and culture are curated to cater to external audiences, diluting the authenticity and depth of these practices for the sake of accessibility and commercial appeal.
Similarly, Balinese architecture, once rooted in sacred principles of space and alignment as guided by the Tri Hita Karana, has been reinterpreted as a stylistic element in tourism development. Hotels, resorts, and private villas adopt traditional design elements, such as thatched roofs, intricate stone carvings, and open-air pavilions, to create an “authentic” Balinese aesthetic that appeals to visitors seeking a culturally immersive experience. However, these elements are often employed superficially, divorced from the cosmological and spiritual meanings originally intended. The architectural principles of Asta Kosala Kosali—the traditional Balinese guidelines for spatial arrangement and design rooted in Hindu-Balinese cosmology—are frequently ignored in favour of bastardized Balinese aesthetic elements that mimic traditional Balinese forms without embodying their underlying philosophy. Asta Kosala Kosali, a manuscript that has existed since the sixteenth century, contains philosophical, ethical and technical aspects related to development implementation (Arthana, 2019). This commodification of Balinese architectural aesthetics has led to a landscape that appears culturally rich on the surface but lacks the spiritual and communal significance that once characterized it.
While early 1900s shipping companies actively promoted tourism to the Dutch Indies and Singapore alongside the growing shipping routes, these were done through imagery that “projected the luxury of tourist accommodation and the exoticness of travel destinations” and through images of “young women, remote landscapes and indigenous architecture”. This was distinctive from the reality of such ports and their industrial agricultural practices”, proving how Western romanticism and capitalistic gains played a major role in the ultimate commodification of Balinese culture (Walker & Achmadi, 2019). The commodification of Balinese culture also fosters a dynamic of performative identity, similar to religious gentrification, where local people feel pressured to embody and “perform” a romanticized version of their culture that aligns with tourist expectations. This phenomenon reinforces stereotypes of Bali as a mystical, spiritual paradise and diminishes the multifaceted, evolving nature of Balinese society. In some cases, this pressure can result in a disconnect between locals and their cultural practices, as individuals may feel that their heritage has been hijacked for profit and reshaped to suit an external gaze. Younger generations, growing up in an increasingly commercialized environment, may come to view these cultural practices as economic tools rather than meaningful expressions of identity, further weakening the link between culture and community. This poses a risk to commodified cultural practices becoming hollowed-out rituals that lack their original spirit and significance, leading to an erosion of local identity.
Postface and Conclusion
POSTFACE - THE ORIGIN MYTH OF BALI
It is important to postface this critique of Bali’s gentrification by considering the creation of Hindu Bali. While there is evidence for Balinese kingdoms (with sophisticated court members and language, and elements of ancestral temples and reverence) flourishing from the 10th Century, Bali was colonised by the Majapahit Empire in 1343, which introduced Hindu elements that were adopted from India and these shaped Balinese culture heavily from this point (Kempers, 2013). While Hindu colonisation has been found to have greatly influenced language (with borrowing of words from Sanskrit) and art (through the heavy influence of Hindu art in Javanese art and architecture), Hindu colonisation of Bali has also introduced some of the more problematic elements that plagued Hindu empires in India, notably the caste system, which has been described to be “so closely linked with Hinduism that one can hardly imagine Hindus having settled in a foreign country without keeping it up and introducing it in their new surroundings”. While this colonisation contributed largely to “territories situated along the sea-route” becoming partners and that this “cultural contact” was crucial to economic development, it is undeniable that the animistic religions that once existed in Bali were subsumed under Hindu colonisation (Bosch, 1961).
Thus, while it is important to acknowledge the problems and struggles of gentrification in Bali – particularly on locals and the environment – it is important to note that classification of Bali’s practices as “authentic” are tied more closely to how true they retain to the religion, that was imported into Bali to begin with. However, considering that many locals now identify as Hindus and continue to practice Hinduism closely – partly out of reverence to their ancestors – it is undeniable that the wave of gentrification in Bali is deserving of critique and change.
CONCLUSION
The gentrification of Bali has brought considerable economic benefits, transforming the island into one of the world’s most sought-after tourist destinations. However, this rapid development has come at the expense of the island’s cultural and spiritual fabric. Sacred spaces, traditional practices, and even natural landscapes have been increasingly commodified, reshaped to cater to foreign visitors rather than to serve the needs of local communities. As rituals are staged for audiences, traditional crafts become mass-produced souvenirs, and Balinese architecture is reduced to a style rather than a deeply rooted philosophy, the island risks losing the authenticity and meaning that have long defined it. This shift poses a complex dilemma: How do we sustain economic growth without eroding the unique cultural identity that has drawn visitors in the first place?
Beyond the physical transformations, the commodification of Bali’s culture has led to a profound disconnect between locals and their heritage. The increasing performative nature of cultural practices and restricted access to sacred sites contribute to a sense of alienation within the Balinese community, as their traditions and spaces are reinterpreted for the benefit of an external gaze. This dynamic has fostered a growing divide between Bali as it is experienced by locals and Bali as it is portrayed to tourists—a disparity that threatens the survival of the island’s spiritual and communal values. This disparity is exacerbated even by non-Balinese Indonesians, who far outnumber foreign tourists. Without deliberate efforts to bridge this gap, we risk a younger generation who may inherit a version of Balinese culture that feels distant, hollow, and driven more by external market forces than by deep-rooted religious and cultural beliefs, and ties to the land and their community.
To counter these pressures, it is crucial that Bali pursues a model of sustainable development that balances tourism with cultural preservation. This means respecting indigenous practices and philosophies, protecting environmental resources, and creating spaces that prioritize the needs and experiences of local communities. Empowering Balinese voices in the decision-making processes around tourism and development can also help ensure that the island’s growth does not come at the expense of its identity. By fostering a tourism model that values cultural integrity over short-term profit, Bali has the potential to offer visitors a more meaningful experience while protecting the essence of its spiritual heritage for future generations. If managed with care, Bali’s unique cultural landscape can remain vibrant and resilient, adapting to modernity without losing the sacred qualities that have long been central to its people’s sense of place and identity.