From Paradise to Poison: How Unsustainable Coastal Development Could Collapse Bali’s Tourism Economy
- Rachel Zlatar
- Jun 19
- 3 min read
Bali, renowned for its picturesque beaches and vibrant culture, faces significant environmental challenges due to rapid urbanization and tourism. Poor urban development, fueled by rapid growth and insufficient planning, threatens to undermine the very coastal environment that attracts tourists.
From polluted waterways and waste-filled beaches to overburdened infrastructure and compromised marine ecosystems, Bali’s unbalanced development is putting its tourism economy, and its natural island beauty on the line.
"Bali’s challenges serve as a wake-up call—without proper planning, any destination could risk becoming a “destination of yesterday.” -Rachel Zlatar, Founder, The Ocean Edition
The Causes:
Residential and Hotel Developments Near Coastal Areas: Especially in emerging island destinations, developments often lack sustainable waste management systems, leading to untreated sewage and nutrient-rich runoff entering the ocean.
Inadequate Infrastructure: Many new developments rely on outdated or undersized waste treatment systems. For example, private septic tanks in residential villas often leak, contaminating groundwater and waterways.
Tourist-Focused Operations: Operators of beach clubs, water sports facilities, and hospitality venues inadvertently exacerbate marine pollution through insufficient waste disposal and management practices and policies, particularly with single-use plastics and environmental damage.
Poor Waste Management: Limited infrastructure and resources in island economies like Bali make proper waste disposal a persistent challenge. A significant portion of waste is mismanaged, ending up in overflowing landfills, rivers, or the ocean, contributing to pollution and environmental degradation.

The Impact:
Marine Pollution: Plastic waste, microplastics and chemical runoff entering the ocean harm marine life, disrupting ecosystems and food chains.
Harmful Algae Blooms (HABs): Nutrient-rich runoff from improperly managed waste fuels algae blooms, depleting oxygen in water and creating dead zones where marine life cannot survive.
Coral Reef Degradation: Sedimentation and pollutants from waste runoff smother coral reefs, reducing biodiversity and resilience to climate change impacts.
Contaminated Food Supply: Toxic chemicals, heavy metals, and microplastics from waste pollution accumulate in fish and shellfish, which are then consumed by humans. Long term exposure can lead to neurological damage, hormonal disruption, and immune suppression.
Health Risks: Contaminated water supplies increase the incidence of gastrointestinal diseases and waterborne illnesses. While burning waste, especially plastics releases toxic fumes that exacertable long-term health issues.
Tourism Decline: Polluted beaches, unsightly trash, health warnings and repeated negative headlines tarnish the destinations reputation as a pristine paradise and deter tourists, reducing visitor numbers and revenue.
Community Displacement: Rising sea levels and coastal erosion exacerbated by environmental degradation force communities to relocate, disrupting lives and economies.
Increased Infrastructure Costs: Governments and businesses face escalating costs to clean up waste, restore ecosystems, and upgrade waste management systems. Though cheaper in the short run, poorly managed waste results in higher long-term costs for remediation and lost economic opportunities.
Loss of Foreign Investment: Environmental degradation and reputational damage deter foreign investors from supporting tourism, real estate, and infrastructure projects.

Takeaways for Emerging Coastal Destinations
As some believe Bali has been overexploited, with fears of it becoming a “destination of yesterday,” the importance of sustainable urban planning and tourism practices cannot be overstated. Protecting natural assets is not just an environmental responsibility—it’s essential for maintaining long-term economic viability and global appeal.
About The Ocean Edition 🪸
We believe in creating the next generation of smart, sustainable, and healthy coastal environments. Our mission is to transform the next generation of coastal cities by integrating innovative, eco-friendly solutions that prioritize well-being and sustainability.
We collaborate with startups, architects, and industry leaders to design sustainable infrastructure, promote ocean tourism, and create thriving, future-proof coastal communities.