Solving the dilemma of tourism development in Canggu and Tanah Lot: It's all in the balance

After the city destination (Melbourne) and the developing destination (Sri Lanka) it was time for our last destination: the developed island of Bali. This time with two new team members to back me up!

The specific area in which we had to carry out research was the area from Canggu to Tanah Lot. As Bali is a developing in a very rapid speed, also this research was again very interesting and instructive. Namely, the south coast of Bali has undergone and is still undergoing a continuous shift in tourism development, currently moving from the East to the West. Tourism development has been the main driver for change in the southern regions. Progress started around 20 years ago in Denpasar, went over to Kuta, then Seminyak and now Canggu is undergoing this change. At the moment, Canggu can be characterised by the many cranes and construction sites, whereas four years ago this town mainly consisted of dirt roads. The main street Batu Bolong nowadays counts numerous little shops and restaurants, which have all been built in less than one year’s time. This shows the speed of the development that is happening here. But this will not stop in Canggu as also Tanah Lot will be affected in a few years.

About Canggu and Tanah Lot

Canggu attracts mostly hipster and surfers, predominantly from Australia. This market is attracted by the good surf conditions and the wide range of ‘organic’ and vegan restaurants and cafes. Next to the backpackers, the region ajracts another market, namely the higher upper class, which is interested in the four or five star hotels, villas and resorts. When driving the scooter on the streets of Canggu the green is astonishing, however, this is replaced by construction in a lot of places. The area is preparing for welcoming more tourists and especially the high end market by building more 5 star hotels, resorts and villa complexes, but also parking spaces and bouSque shops. This already has an effect on the traffic in Canggu which became more dense and noisy.

Tanah Lot, which lies to Canggu’s West is less developed and even more rich in natural resources and less in noise, pollution, crowds of people. However, there is a place that is well known for tourists a must see sightseeing point, namely the ‘Tanah Lot desSnaSon’ with its famous island temple Pura Tanah Lot. Otherwise, rice fields filled with cows and a wide view of green spaces is offered in the region. Right next to this tourist attraction there is the Pan Pacific, a five star resort with own golf course. Nevertheless, this will make room for a new project financed by US’ president Donald Trump. Furthermore, the tourism development highly noticeable in other parts of Bali’s south is rather low in Tanah Lot and surroundings but already happily expected by its people and businesses.

The dilemma

Findings show that tourism started the main development in Bali which is perceived as positive, regarding profit and infrastructure, but also negative, regarding infrastructure and environmental impacts. Tourism has created and is creating employment, generates profit for the community, and connects locals with foreigners (cultural exchange).

However, tourism’s environmental impacts such as waste issues and water scarcity are to be taken into consideration by enterprises operating in the area. These and the government as well have the responsibility to protect not only the economy, but also the community and environment. Furthermore, one of the main findings has shown that in order to promote cultural tourism and for tourists to visit in the future it is important to keep the culture alive as this is the main reason why tourists visit Bali. All businesses in Canggu and Tanah Lot stated they did not want Canggu and Tanah Lot to develop the same way as neighbouring towns Seminyak and Kuta. Businesses in Canggu even stated they want to “keep Canggu the way it is now”. The main issue of both villages regards the crowdedness that should be avoided. Moreover, there is a general fear of negative impacts of tourism development on natural and cultural resources. Whereas the rice fields in Kuta and Seminyak are almost completely gone, they are still present in Canggu and Tanah Lot. These green zones need to be protected as they portrait the “real Bali”. Also the “parties like in Kuta” is a phenomenon which the enterprises in Canggu and Tanah Lot deeply wish to prevent from happening in their own town. Here lays the dilemma of 2 towns in Bali which are developing in high speed at the moment, but should be developed in the right way in order to prevent the area from getting ruined.

The solution

As development cannot be stopped, the preferred future for Canggu and Tanah Lot should rather be focussed on minimising the negative effects of tourism development and maximising the positive effects. By doing so, the cultural and natural resources should be maintained as much as possible. Hence, the connection with the local culture should be kept and a proper waste management with sustainable actions is needed. Moreover, in order to prevent the Canggu and Tanah Lot area from becoming too crowded, there should be a focus on ‘quality over quantity when it comes to visitor markets.

First of all, it is important to not only make use of natural and cultural resources but to also give back to the environment and to the local community. In order to do so, these organizations provide employment for the people in the region, pay them a fair salary, and educate them. Infrastructure is indirectly enhanced by increasing tourism in the area, streets are being maintained. Furthermore donations are being made to local charity programmes. Regarding the nature, enterprises can return the favour by not exploiting it too much and by making use of bio-degradable materials such as wood and by using glass bottles and bamboo or paper straws instead of plastic for example.

Secondly, it is highly significant for businesses to integrate the culture in its body, mentality and aitude by building in Balinese style, hiring local people who represent the culture of the region best, using local products, offering local experiences and respect the locals and the nature by not interfering too much and staying close to the origin which carries the highly valuable authenticity.

Lastly, these companies shall not provide an ordinary product that can be found all over the world but they should offer a product or service that is unique and values quality over quantity. It is crucial to attract the company-specific-right target market by customised promotion, personalised trained employees that offer customised services, and customise the markets to the destination. Furthermore, personalised service is the key to standing out in the high competition of Bali. Therefore, it is advisable to treat the guests like family instead of a room number and offer 24/7 services.

In the end the solution of the dilemma lies in the balance MLOs should create between the cultural, natural and human resources they make use of.