Problems of Tourism Leakage in Badung Regency due to Foreign Tourist Invasion

https://doi.org/10.35912/joste.v6i3.2651
Published: Jul 8, 2025

Abstract:

Purpose: Bali Province, a popular tourist destination, is facing challenges due to the "Foreign Tourist Invasion." This term refers to foreign tourists dominating the local economy by establishing illegal businesses, such as restaurants, tour services, and money changers. These operations often evade taxes and negatively affect local enterprises.

Research Methodology: This study employed a qualitative descriptive approach using a case study method. Data were collected through in-depth interviews, direct observations, and document analysis in tourism hotspots, such as Kuta, Seminyak, and Nusa Dua.

Results: The study reveals that tourism leakage is caused by the weak enforcement of regulations, the dominance of foreign-owned businesses, and minimal local community involvement. Consequently, most tourism revenue benefits foreign investors rather than local residents.

Conclusion: To mitigate leakage, this study recommends strengthening community-based tourism (CBT), supporting local SMEs, enforcing tourism-related regulations, and diversifying tourism markets to include more domestic travelers.

Limitations: The study's findings are geographically limited to major tourist zones in Badung Regency and rely on qualitative data, which may not fully capture broader statistical patterns across Bali, Indonesia.

Contributions: This study provides strategic insights for policymakers and tourism stakeholders by highlighting the need for structural reforms in tourism governance. It also raises awareness of the long-term socioeconomic implications of unmanaged tourism and advocates for sustainable, inclusive tourism development rooted in local participation.

Keywords:
1. Invasion
2. Impact
3. Tourism
4. Travelers
Authors:
1 . Ni Luh Putu Margayawati
Universitas Ngurah Rai Denpasar
2 . Nyoman Diah Utari Dewi
Universitas Ngurah Rai Denpasar
3 . Ida Ayu Putu Sri Widnyani
Universitas Ngurah Rai Denpasar
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Margayawati, N. L. P. ., Dewi, N. D. U. ., & Widnyani, I. A. P. S. . (2025). Problems of Tourism Leakage in Badung Regency due to Foreign Tourist Invasion . Journal of Sustainable Tourism and Entrepreneurship, 6(3), 295–306. https://doi.org/10.35912/joste.v6i3.2651
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Issue & Section
Vol. 6 No. 3 (2025): May
Articles
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References

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    Sutama, I. K. G., Dewi, N. D. U., & Rahayu, L. R. (2024). Community Based Tourism sebagai Salah Satu Konsep Pengembangan Pariwisata. Jurnal Studi Perhotelan dan Pariwisata, 2(1), 47-55. doi:https://doi.org/10.35912/jspp.v2i1.2042

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    Toubes, D. R., Gössling, S., Hall, C. M., & Scott, D. (2017). Vulnerability of Coastal Beach Tourism to Flooding: A Case Study of Galicia, Spain. Environments, 4(4), 1-23. doi:https://doi.org/10.3390/environments4040083

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    Wiweka, K., & Chevalier, S. (2022). Bali Tourism Research Trends: A Systematic Review, 1976-2022. Jurnal Kajian Bali (Journal of Bali Studies), 12(2), 600-626. doi:https://doi.org/10.24843/jkb.2022.v12.i02.p14

  1. References
  2. Apriola, A., & Elfira, M. (2024). Respon Warganet Indonesia Terhadap Pelanggaran Turis Rusia Di Bali: Interpretasi Sakral dan Profan. Multikultura, 3(2), 228-250. doi:https://doi.org/10.7454/multikultura.v3i2.1011
  3. Astina, M. A., & Artani, K. T. B. (2017). Dampak Perkembangan Pariwisata Terhadap Kondisi Sosial dan Ekonomi Masyarakat Sanur. Jurnal Ilmiah Hospitality Management, 7(2), 141-146. doi:https://doi.org/10.22334/jihm.v7i2.9
  4. balihotelsassociation.com. (2023). 2023 Key Statistics Souce BPS January-December. Retrieved from https://www.balihotelsassociation.com/monthly-passengers-statistic/2023/
  5. Blake, J. (2022). Family size and achievement (Vol. 3): Univ of California Press.
  6. BPS. (2023). Provinsi Bali Dalam Angka 2023. Retrieved from https://bali.bps.go.id/id/publication/2023/02/28/b467b61cc7b43c86916a11db/provinsi-bali-dalam-angka-2023.html
  7. Candia, S., & Pirlone, F. (2021). Tourism Environmental Impacts Assessment to Guide Public Authorities Towards Sustainable Choices for the Post-COVID Era. Sustainability, 14(1), 1-16. doi:https://doi.org/10.3390/su14010018
  8. dispar.badungkab.go.id. (2023). Rencana Aksi Dinas Pariwisata Tahun 2024. Retrieved from https://dispar.badungkab.go.id/storage/files/7c5e2be78ad1043b9fec6abb7882ecb1.pdf
  9. dispar.badungkab.go.id. (n.d.). Profil Instansi. Retrieved from https://dispar.badungkab.go.id/-241115181639
  10. Errichiello, L., & Micera, R. (2021). A Process-Based Perspective of Smart Tourism Destination Governance. European Journal of Tourism Research, 29, 2909-2909. doi:https://doi.org/10.54055/ejtr.v29i.2436
  11. Julianti, L., Sugiantari, A. A. P. W., Suharyanti, N. P. N., & Udytama, I. W. W. W. (2023). Transformation of Investment Model Implementation in Tourism Industrialization Based on Local Wisdom in Badung Regency. International Journal of Social Science and Business, 7(1), 96-104. doi:https://doi.org/10.23887/ijssb.v7i1.44866
  12. Kemenparekraf. (2020). Outlook Pariwisata & Ekonomi Kreatif Indonesia. Retrieved from https://bankdata.kemenparekraf.go.id/upload/document_satker/a6d2d69c8056a29657be2b5ac3107797.pdf
  13. Khan, N., Hassan, A. U., Fahad, S., & Naushad, M. (2020). Factors Affecting Tourism Industry and its Impacts on Global Economy of the World. Available at SSRN 3559353, 1-32. doi:https://dx.doi.org/10.2139/ssrn.3559353
  14. Liu, W., Shao, X., De Sisto, M., & Li, W. H. (2021). A New Approach for Addressing Endogeneity Issues in the Relationship Between Corporate Social Responsibility and Corporate Financial Performance. Finance Research Letters, 39, 101623. doi:https://doi.org/10.1016/j.frl.2020.101623
  15. Okazaki, E. (2008). A Community-Based Tourism Model: Its Conception and Use. Journal of sustainable tourism, 16(5), 511-529. doi:https://doi.org/10.1080/09669580802159594
  16. Pulido-Fernández, J. I., & López-Sánchez, Y. (2016). Are Tourists Really Willing to Pay More for Sustainable Destinations? Sustainability, 8(12), 1-20. doi:https://doi.org/10.3390/su8121240
  17. Sari, W. P., Pandrianto, N., Azeharie, S., Sukendro, G. G., & Irena, L. (2024). The Existence of Tourism and Local Culture: A Study of the Talc Tourism Model in Bali. Environmental & Social Management Journal/Revista de Gestão Social e Ambiental, 18(11). doi:https://doi.org/10.24857/rgsa.v18n11-051
  18. Setiawan, A. R. (2023). Tourism and Intercultural Communication: A Theoretical Study. Jurnal Komunikasi, 17(2), 186-195. doi:https://doi.org/10.21107/ilkom.v17i2.22733
  19. Sharpley, R. (2020). Tourism, Sustainable Development and the Theoretical Divide: 20 Years On. Journal of sustainable tourism, 28(11), 1932-1946. doi:https://doi.org/10.1080/09669582.2020.1779732
  20. Singbandith, S. (2016). Is Community-Based Tourism Beneficial to Local Communities? The Case of Naduang Village, Vang Vieng District, Vientiane Province, Laos. University of Waikato.
  21. Suasapha, A. H. (2022). Tourism Potentials of Ulu Apad: A Traditional Governance System of the Original Balinese People in Penglipuran Village. International Journal of Applied Sciences in Tourism and Events, 6(2), 127-137. doi:https://doi.org/10.31940/ijaste.v6i2.127-137
  22. Suryawardani, I. G. A. O., Bendesa, I. K. G., Antara, M., & Wiranatha, A. S. (2014). Tourism Leakage of the Accommodation Sector in Bali. ASEAN Journal on Hospitality and Tourism, 13(1), 3. doi:https://doi.org/10.5614/ajht.2014.13.1.01
  23. Sutama, I. K. G., Dewi, N. D. U., & Rahayu, L. R. (2024). Community Based Tourism sebagai Salah Satu Konsep Pengembangan Pariwisata. Jurnal Studi Perhotelan dan Pariwisata, 2(1), 47-55. doi:https://doi.org/10.35912/jspp.v2i1.2042
  24. Sutanto, H., & Setiadi, N. J. (2020). Overtourism Sebagai Keniscayaan Dalam Pengelolaan Pariwisata di Indonesia. Altasia Jurnal Pariwisata Indonesia, 2(2). doi:https://doi.org/10.37253/altasia.v2i2.590
  25. Toubes, D. R., Gössling, S., Hall, C. M., & Scott, D. (2017). Vulnerability of Coastal Beach Tourism to Flooding: A Case Study of Galicia, Spain. Environments, 4(4), 1-23. doi:https://doi.org/10.3390/environments4040083
  26. Utama, I., Suardhana, I. N., Sutarya, I. G., & Krismawintari, N. P. D. (2024). Assessing the Impacts of Overtourism in Bali: Environmental, Socio-Cultural, and Economic Perspectives on Sustainable Tourism. TourismSpectrum: Diversity & Dynamics, 1(2), 1-12. doi:https://dx.doi.org/10.56578/tsdd010202
  27. Varumo, L. (2016). Community-Based Tourism as the Interface of Indigenous and Non-Indigenous Worlds. Unpublished Master’s Dissertation, University of Tampere School of Management, Finland, 1-87.
  28. Wiweka, K., & Chevalier, S. (2022). Bali Tourism Research Trends: A Systematic Review, 1976-2022. Jurnal Kajian Bali (Journal of Bali Studies), 12(2), 600-626. doi:https://doi.org/10.24843/jkb.2022.v12.i02.p14