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The Influence of Tourism on Global Property Values

Tourism is a powerful economic force that plays a significant role in shaping property values in popular destinations around the world. As tourism grows, it introduces both opportunities and challenges for local real estate markets. This article explores how tourism impacts property values from a global standpoint, focusing on the benefits, challenges, and differing effects across various regions. Positive Impacts of Tourism on Property Values Rising Demand for Real Estate Tourism often increases the demand for both residential and commercial real estate. Popular tourist destinations attract investors who seek to profit from short-term rentals, including vacation homes, Airbnb properties, and boutique hotels. This surge in demand can push property values higher, particularly in areas close to major attractions or natural beauty spots. Economic Growth and Improved Infrastructure The influx of tourists can drive local economic growth, leading to improved infrastructure and public service

New Indonesian Laws Aim to Manage Bali’s Tourism Surge and Prevent Overtourism


an aerial shot of a beach in Bali



Indonesian authorities are crafting new regulations to address the rising tourism levels in Bali. Local tourism operators are studying international examples to mitigate the potential downsides of overtourism.

South Bali is nearing a threshold where tourism could become unmanageable, a challenge faced by other popular global destinations. Learning from these locations could help Bali avoid similar issues.


In Belgium, the city of Bruges has recently implemented regulations to limit short-term vacation rentals in its historic center. The city has also paused new hotel construction projects. These measures are designed to keep tourist numbers in check and prevent future difficulties.


In 2023, Bruges welcomed more than 8.2 million tourists, despite having a population of only 120,000. Bali faces a comparable challenge as its tourist numbers continue to rise steadily.


Residents' Concerns

Bruges’ Mayor, Dirk De Fauw, highlighted that local residents are increasingly worried about the growing number of tourists. He warned that unchecked tourism could result in serious problems. Bali's residents share similar concerns, particularly regarding the frequent traffic congestion caused by tourists.


While Bali focuses on resort tourism, Bruges attracts primarily day visitors. Mayor De Fauw mentioned he is reluctant to impose a tax on these day visitors, but he remains open to similar measures if necessary.


Although Bruges does not plan to restrict tourist access like Dubrovnik or Venice, the city is still feeling the impact on its infrastructure and community. Sustainable tourism management is crucial to preserving Bruges' cultural heritage while maintaining its lively atmosphere. Bali's leaders are also searching for ways to balance the benefits of tourism with the needs of local residents.


Recently, Indonesia’s Minister of Tourism announced that new laws are being drafted. These laws will aim to protect community-owned and agricultural lands in Bali from being converted into tourism developments.


In February 2024, Bali introduced a tourism tax, but enforcing it has been challenging. Roughly 60% of international visitors have not paid the tax. To address this issue, the Bali Tourism Office is conducting spot checks to ensure compliance. The revenue generated from this tax will go toward preserving Bali’s culture, environment, and infrastructure.


Last month, Minister Uno referred to the anti-tourism protests in Barcelona, emphasizing that Bali must take steps to prevent similar unrest. He acknowledged the significant role of tourism in Bali’s economy but stressed that ignoring resident dissatisfaction could lead to major problems.


To better distribute tourist traffic across the island, Minister Uno is promoting lesser-known regions of Bali. He is encouraging visitors to explore resorts in the north and west, while also working to improve transportation links across the island.


The central government has also supported the development of a toll road through Bali's central areas as part of its efforts to promote sustainable tourism.


Additionally, Indonesia has recently entered into agreements with several African countries to develop sustainable tourism models. As more cities around the world address the challenges of overtourism, Bali is expected to adopt some of these strategies.

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