Potential threats and impact to Bali´s economy and community livelihoods and the role of the tourism industry

CLIMATECHANGE

R A P I D A S S E S S M E N T O N CLIMATECHANGE

Climate Change and its Potential Effects on Bali.....1Tourism and Climate Change.....2

Travel, Tourism and the Socio-Economics of Bali.....4The history of Tourism development in Bali.....4Resilience of the Tourism Industry.....6Investment.....8Population Pressures.....9Lack of Planning and Enforcement of Regulations.....11Land Use, Agriculture and Forestry.....11Coastal impacts and The Coral Triangle.....12Handicraft and Manufacturing Industries.....12Export and Import.....13Solid Wastes Issues.....13Water Scarcity.....14Infrastructure.....14Power supply.....14

Potential Effects of Climate Change on Bali.....17Changes to the Physical Environment.....17The Built Environment.....17The Tourism Sector.....18Key Issues.....18Possible Measures.....19

The Role of the Tourism Industry.....20Key Respondents - background to this study.....20Programs Already in Place.....21Barriers and Limitations.....21Opportunities.....23 Conclusions & Recommendations.....24Responsible Tourism.....24Responsible Travelers.....26Lobbying.....27

Appendix A: Overview of Industry Associations and Government Regulating.....28

Authorities: References.....29

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Study Conducted under auspices of Bali Fokus by: Yuyun Ismawati,

Muriel Ydo, and Kadek Krishna Adidharma for WWF’s Coral Triangle Network Initiative.

Edits by Richard Leck and layout by Nina Narvsten for WWF.

WWF wishes to thank and acknowledge all the tourism operators,

and tourism and travel experts that have participated in the meetings and

interviews for their contributions.

This study was funded by the Turing Foundation.

Despite the lack of regulations and incentives, many players in Bali’s tourism industry have been proactive in establishing sustainable tourism practices. Like many locations that have experienced recent rapid growth, Bali faces a number of acute environmental issues such as pollution, loss of important natural systems and inappropriate development, which need urgent addressing. However, climate change looms large on this small island’s horizon and will add increased pressure to these existing threats.

Bali’s economy is almost entirely reliant on a robust tourism industry and the tourism industry in turn relies on the health of Bali’s natural assets. How the threats posed by climate change are managed may have a dramatic impact on the future viability of Bali’s tourism industry.

This report concludes that the leaders of the tourism industry have a vital role to play in protecting Bali’s environment, while also protecting their industry. They will need to harness the momentum of global public concern of climate change to unite their industry in a sustained effort to reduce their ecological footprint and plan for a changing future.

Indonesia is a unique archipelago of over 17,000 islands with two thirds of its area covered by sea. Home to 220 million people, Indonesia is the world’s fourth populous nation. Rapid developments in land use to exploit forest resources and the growing patterns of consumption have turned it into the third largest emitter of greenhouse gases in the world.

Bali is Indonesia’s most popular tourist destination. This small island constitutes only 0.3% of Indonesia’s landmass, but is yet home to 1.4% of Indonesia’s population - 80% of who rely on income generation related to the tourism industry. The pace of development in Bali has been rapid, and increasing incomes from emerging sectors have lured Balinese away from the relative self-suffi ciency of a traditional agrarian way of life.

The tourism industry of Bali has been resilient to the changes in the world’s global political climate, but can it survive nature’s climate change?

563,286 hectares, 10% in critical condition23% 430 km on mainland, 99km on surrounding islands, 86.5 km badly eroded3,263,296 (in 2006)579/km²7,050.38 km

Vital Statistics on Bali1

Land AreaForested Land

Length of Coast

PopulationDensity

Length of sealed roads

1Bali dalam Angka 2007, BPS Bali Province 2007

Climate Change and its Potential Effects on Bali

CHAPTER 1

Climate change represents an enormous threat for developing countries such as Indonesia. Poverty, along with the terrible infl uence it plays upon human life, is expected to exacerbate with the impact of climate change, requiring more than simply aid in funds to improve it.

The United Nations Framework Convention on Climate Change (UNFCCC) is one of the commitments that emerged from the 1992 Earth Summit in Rio de Janeiro, Brazil. The Kyoto Protocol is a protocol to the UNFCCC with the objective of reducing greenhouse gases that cause climate change.

The main objective of this convention is to stabilize the concentration of greenhouse gasses in the atmosphere that are hazardous to the climate system. Several waste gases such as methane (CH4) and carbon dioxide (CO2) are referred to as greenhouse gases because of their greenhouse effect in trapping the heat of the sun’s radiation inside earth’s atmosphere.

A report by the Intergovernmental Panel on Climate Change (IPPC) confi rmed fi ndings that the increasing greenhouse gas emissions are forming a heat-trapping layer that is growing thicker and thicker. It is estimated that the earth’s average surface temperature has increased by one to three degrees Celsius within this century. This trend potentially has drastic impacts on the planet, and could spell disaster if there is no immediate change in behavior to curb greenhouse gasses.

The changes in weather patterns have caused severe fl oods in certain areas and more extreme droughts in others. It is feared that an explosion of diseases such as malaria, dengue fever and bird fl u could occur in the future. Crop harvest reduction may lead to severe food shortages, while changes to habitat are damaging marine ecosystems, threatening extinction to 15-40% of species biodiversity. These effects, attributed to global warming, are exacerbated by the already acute pressures that humans are placing on the nation’s environment. Small islands are threatened with submersion and erosion, which may cause internal displacement.

Increase of temperature and severe drought leads to a decrease in soil fertility which in turn threatens food security. Poor people, with low capacity to deal with change, fewer resources, and high dependency on tenuous resources, will suffer most.

Bali has seen severe environmental degradation in the past three decades due to changing land use and lifestyles. A warming of its microclimate appears evident in symptoms such as drought, fl oods and loss of marine habitat through coral bleaching.

Under IPCC scenarios, it is estimated that temperature may increase from 0.72 to 3.92°C. Up to a 2°C rise will have high impacts on Bali’s coral reefs and much of its marine environment. Beyond a 2°C rise the impacts will be potentially catastrophic for Bali’s natural resources and the people and industries that depend on them.

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“The calendar that has been giving Balinese a lot of guidance about when is the best time to do things, especially traditional farming, is no longer accurate. It may need to

be calibrated to refl ect the changes that have already happened.”

Bayu, Director of Friends of National Parks Foundation

Tourism and Climate ChangeThe tourism industry encompasses an enormous array of businesses, activities and people. These range from luxury hotel chains to National Park campgrounds, from tourist boards to government departments, and from tour operators to conservation organizations. The various interests involved can be loosely grouped into four categories: the host population, tourist guests, tourism organizations and the natural environment. An examination of these four major sets of interests indicates, at fi rst sight, that they have mutually-reinforcing aims in ensuring sustainable tourism development2.

Predicted changes to the world’s climate give substantial cause for concern to the tourism industry. Sea level rise threatens the viability of many coastal and island destinations. Climate change also seems likely to increase the magnitude, frequency and risk for extreme climatic events such as prolonged drought, storms and sea surges, making it diffi cult for tourists to travel in these areas3.

Concerned about the impacts of the climate change to the tourism industry, in April 2003, the World Tourism Organization arranged the fi rst International Conference on Climate Change and Tourism.

2

2 Erlet Cater; The Geographical Journal, Vol. 161, 19953 Proceedings of the 1st International Conference on Climate Change and Tourism, Djerba, Tunisia, 9-11 April 2003

An important output of the conference was the issuance of the Djerba Declaration on Tourism and Climate Change. The declaration calls upon all interested parties to continue research efforts, encourage sustainability in tourism, raise awareness of the issues involved and use the declaration as a framework for future action4.

A recurrent theme of the Djerba’s tourism and climate change conference was the need to recognize a two-way relationship between tourism and climate change. On one hand, tourism has an obligation to minimize its adverse impact on the environment and thus on the emission of green-house gases which in turn contribute to climate change. On the other hand, it was recognized that changes to the world’s climate would have a direct impact on many tourism destinations with far reaching implica-tions, not just for the tourism industry, but for other economic sectors as well. The tourism industry needs to be made aware of these consequences and set in train planning processes which will enable the industry to adapt and adjust its activities accordingly5.

4 Final Report, Proceedings of the 1st International Conference on Climate Change and Tourism, Djerba, Tunisia, 9-11 April 2003 5 Ibid

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The tourism industry of Bali has brought many benefi ts to the island, such as paid employment, and it transformed a marginal economic region to one with high economic revenue. However, Bali’s tourism development happened quickly and without proper planning or adhering to sustainable development rules. Therefore, tourism has caused some serious damage to the island’s environment. The sleepy village of Kuta, for example, was never planned as a tourism destination. Due to its white sand beaches and consistent surf, it has now become a tourist enclave, with its natural resources degraded and its infrastructure overwhelmed.

The history of Tourism Development in Bali Mass tourism in Bali began in 1969 with the construction of the new Ngurah Rai International Airport, allowing foreign fl ights directly into the island, rather than arrival via Jakarta. Three years later, in 1972, the Master Plan for the Development of Tourism in Bali was drawn by the government of Indonesia. The government wanted to make Bali the “showcase” of Indonesia to serve as the model of future tourism development for the rest of the country6.

The plan was relatively ignored, and followed by rapid and unchecked tourism development, which has had a large impact on its natural environment - affecting water resources, increasing pollution and localized fl ooding, and putting pressure on the island’s infrastructure7.

There has been an increase in waste generation due to the increasing local population and tourist numbers, as well as a change in lifestyle. In the capital Denpasar, for instance, about 20 percent of the solid waste is not collected or disposed of. Instead, it is left in “informal” landfi lls, dumped into canals or left on the streets8. Other environmental problems are deterioration of water quality in coastal areas and destruction of coral reefs (which at one point, was used in building construction.)9

Since The Bali Tourism Master Plan failed to restrict development in Kuta where rapid unplanned development took place between 1971 and 1988, other more distant non-designated areas such as Lovina Beach, Candi Dasa, and Ubud grew in popularity and developed faster than the planned-for areas in the south. It soon became clear that the real market for tourism was underestimated by the plan and due to the uncontrolled nature of the development and its enormous scale and pace; many negative social and environmental impacts began to surface10.

Liberalization of measures to promote trade and foreign capital investment in 1988 (when the plan expired) also spurred on the tourism industry in Bali. During 1980’s and 1990’s new international hotels opened in Nusa Dua and other areas. Data collected for the year 2006 show that 6,181,293 domestic and international passengers traveled thru Bali’s airport. On average there are 164 fl ights landing and departing per day11.

Travel, Tourism and the Socio-Economics of Bali

CHAPTER 2

6 Michael Hitchcock, Victor T. King, and Michael J. G. Parnwell, eds., Tourism in South-East Asia, (London: Routledge, 1993), 79.7 Libby Moffet, “Indonesia: Freeze Imposed on Bali Hotel Projects,” Australian Financial Review, (18 April 1991). 8 Bruce Mitchell, “Sustainable Development at the Village level in Bali, Indonesia,” Human Ecology 22 (June 1994): 191. 9 Ibid10 Bali Case Study, Institute for Sustainability and Technology Policy, Murdoch University, 2000 http://www.sustainability.murdoch.edu.au/casestudies/Case_Studies_Asia/bali/case04.htm11 Dinas Perhubungan 2006, Bali dalam Angka 2007, BPS Bali Province 2007

4

In 2007, it was estimated that around 6.25 million domestic and international passengers arrived and departed through the Ngurah Rai Airport. The number of foreign travelers directly arriving in Bali in 2006 was 1,260,270 visitors. The estimated number of foreign tourists visiting Bali in 2007 is 1,7 million12. However, a growing number of travelers are arriving on domestic fl ights and domestic fl ights have grown rapidly, now amounting to 53% of airport arrivals.

Although voted as the best island destination in the world by New York-based Travel & Leisure magazine just recently, the panel of 522 experts of The National Geographic Traveler pointed to Bali’s extremes: strong culture, beautiful nature, crass commercialization and environmental destruction, scoring 57 out of 100 for sustainability13,14.

12 www.balidiscovery.com/update/updatexxx.asp13 National Geographic, November 200714 50-65: In moderate trouble: all criteria medium-negative or a mix of negatives and positives.

5

Resilience of the Tourism Industry In the past decade, the impacts of the Bali bombings, the war in Iraq and SARS are felt through Bali, Lombok, and to a lesser extent, East Java. The whole tourism sector has been directly impacted, especially the hotel sector. Impacts are highest in Denpasar and Badung in the south of Bali where the tourism industry is concentrated. The relative vulnerability to the impacts has been equal, if not greater, in poorer areas of North and East Bali. While communities, households and businesses have shown a variety of coping strategies, the prolonged nature of the crises has put them all under signifi cant pressure.

A rough estimation on full income and employment impacts of tourists suggests that one foreign visitor per year is supports almost half a local job. Among the 500,000 working in hospitality, anecdotal evidence suggests that during the crisis in 2005, up to 75% were either working on reduced shifts or been made temporarily redundant. Schools in Bali also reported an increased drop-out rate of 31% following the bombing. As of late 2006, some normality seemed to have been restored.

An assessment after the Bali bomb in 2002 revealed that dampened economic prospects may lead to a reduction in investments, most notably refl ected in the construction industry. The regional accounts expenditure data suggests a signifi cant decline in private capital formation after the crisis, with signifi cant contractions in 1997 (3.5%) and 1998 (-26.6%). Flat levels in 1999 and 2000 meant that investment levels were still well below pre-crisis levels15. This appears to be mirrored in the regional income accounts for construction. Income in that sector had dropped by 10 percent between 1997 and 2000, the largest decline of any sector, revealing that the sector was already doing bad prior to the Bali Bomb16.

Badung Regency and Denpasar City, two out of nine regencies in Bali, rely heavily on tourism for their economic performance. Both regencies contribute about 75% of Bali’s revenue. In the short term, the island seems resilient to fl uctuating arrivals of tourists.

The following table presents the Human Development Index (HDI) in Bali a year before the Bali Bombing and the years of the fi rst and second Bali Bombs. Although Badung regency is known as the major contributor for Bali’s economy, the HDI of Badung show lower value compare to other regencies. This could mean that the tourism economic benefi ts were not reinvested for the local human resources.

15 1998-1999 was the period of Indonesia’s economic turmoil16 Interim Consultative Group on Indonesia, Informal World Bank Staff Paper, Vulnerabilities of Bali’s Tourism Economy: A Preliminary Assessment, November 1, 200217 Source:http://www.datastatistik-indonesia.com/component/option, com_tabel/task,show/Itemid,182/

City/Regency 1999 2002 200517

Jembrana 65.5 68.9 70.4Tabanan 68.7 70.4 72.3Badung 68.2 70.1 71.6Gianyar 64.4 67.7 70.8

Klungkung 62.9 64.6 68.7Bangli 64.4 66.7 68.7

Karangasem 57.5 59.3 63.3Buleleng 63.1 63.9 68.1

Denpasar City 72.1 74.9 75.2Bali Province 65.7 67.5 69.8

Human Development Index BALI*

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* The HDI - human development index - is a summary composite index that measures a country’s average achievements in three basic as-pects of human development: health, knowledge, and a decent standard of living. Health is measured by life expectancy at birth; knowledge is measured by a combination of the adult literacy rate and the combined primary, secondary, and tertiary gross enrolment ratio; and standard of living by GDP per capita (PPP US$).

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QUALITY TOURISM“Tourism in Bali should aim for quality, longer stays, people

who travel through the island and enjoy eco-tourism.”Al Purwa, ASITA Chairperson, owner KCB Tours

Investment Investment on the island has been focused in tourism and trade at a few destinations, the income from which does not widely trickle down to the rest of the island.

A relatively unchecked and unplanned boom in luxury villa development characterizes recent expansion in Bali. This trend puts a heavy burden on the island’s infrastructure, especially as locals begin to aspire to the same standard of living.

What happens is that the visitors arrive as individuals with high standard of living who are more or less frustrated in their own culture and then attempt to idealize the civilization they can ap-preciate only superfi cially, identifying it with a Lost Paradise they hope to see preserved. Their hosts, on the other hand, only see the exterior of trappings of a foreign way of life and are tempted to think of the countries from which these tourists arrive as a sort of Promised Land they must make all efforts to emulate.

SCETO 1971, Vol.2, cited in Picard (1996)

8

The investment for agriculture and irrigation during the 1967–2001 periods was only about Rp. 272.8 billion. Meanwhile,

the investment within the tourism and trade sector at the same period reached Rp. 13.9 trillion

DR. Ir. Dewa Ngurah Suprapta Postgraduate Lecture of Udayana University

THE RIPPLE EFFECTFor every dollar that tourists spend, about $2.90 will be

pumped into local economySource: SCETO, Quoted from Bali Balancing Environment, Economy and Culture

by Sugeng Martopo & Bruce Mitchell

THE RIP-OFF EFFECTIn reality, for every dollar tourists spend, only $1.40

goes to the local economy, due to funds being siphoned directly to Jakarta and overseas

Source: SCETO, Quoted from Bali Balancing Environment, Economy and Culture by Sugeng Mar-topo & Bruce Mitchell

Population Pressures The Bali Post reports that Bali is becoming increasingly over-populated. Experts estimate the ideal carrying capacity for Bali at 2.4 million, a number far below the offi cial fi gure of 3,263,296 people who now make their home on the island. The Regional Planning Board of Bali Province (BAPPEDA), Drs. Made Adijaya revealed that the current average of 600 people per square kilometer in Bali is 50% more than the ideal number. In municipal areas, population loads are estimated to equal a very crowded 3,697 people per square kilometer18,19.

Of those in working age, the percentage with employment in 2006 was about 76.3%. Out of that fi gure, about 35.5% worked in agriculture and 21% in tourism, 12% in manufacturing and the rest in other sectors. Estimates from tourism industry professionals suggest that the number of people working directly in the tourism sector is more likely higher21.

Bali’s poverty rate in 2006 was about 12% (compared to 17.8 percent in Indonesia by March 2006) 22 An estimated 40% live under the poverty line, are mostly under-employed, or work unregistered for very low pay and live in a situation that Clifford Gertz refers to as “sharing poverty with their relatives”24. Some are migrants from Java and Lombok.

Evidence from SUSENAS 2002 showed that 71 percent of the poor in Bali depend on agriculture. While they were not directly impacted by the downturn of the tourism industry after terrorist attacks on Bali, it is the poor in Bali who depend on agriculture who will suffer most from the impact of climate change25.

9

18 Bali Post, October 20, 200719 Bali dalam Angka 2007, BPS Bali Province 200720 Ibid21 BTB, www.balidiscovery.com, Bali Update 2007 22 Interview with Prof. DR. I Nyoman Erawan, Head of Post Graduate Department of Economic Development of Udayana University stated that November 16, 2007 23 BPS Indonesia, 200624 Interview, November 200725 Confronting Crisis: Impacts & Response to the Bali Tragedy, January 2003

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“The Government should halt new investment in hotels. There should be renewed focus on village-based tourism in order to improve the economic status of the Balinese people. It doesn’t matter if village based investments have small profi ts, the dollars produced will go directly to many people. The tourism industry should stop turning the Balinese into a race of common laborers.” Jro Gde Karang, Owner of Suar Tours & Bali Tropic Hotel

Lack of Planning and Enforcement of RegulationsReduced arrivals were initially expected to curb development on the island, but this has not been the case. New hotels, restaurants and resorts are still developed with little planning control or concern of saturation from the government.

To date, there are 320 travel agencies registered with the travel agency association ASITA in Bali, 70 of these were classifi ed as “unhealthy” in November 2007 and were given 3 months to get their agency in order or face expulsion from the trade. The 70 companies have not responded to repeated attempts by ASITA-Bali to make contact and are no longer active members of the organization. This may indicate that operations have ceased and the enterprises are bankrupt. In the recent year, how-ever, 127 new licenses have been granted by the relevant tourism and planning authorities, suggesting very little control being exercised.26.

By 2006 Bali had 41,379 rooms, of which some 85% of star rated rooms are, according to the Dinas Pariwisata Provinsi Bali- Directory 2006 or Regional Department of Tourism (2006), located in the southern part of the island. The total number of star rated rooms in Bali is 20,239 and non star-rated 21,086 showing that the last are more common throughout the island than the star rated rooms.

However, the Indonesian Hotel and Restaurants Association estimates that the number of rooms available in Bali is more likely to be around 60,000. This estimate is partly based on a surge in private villa develop-ment that are unregistered or not licensed and unaccounted for as well as other non registered non-star rated accommodation.

Although Bali’s Zoning Regulations of 2005 (Peraturan Daerah Provinsi Bali Nomor 3 Tahun 2005) already prosecuted properties that were build too close to the ocean front, many new developments, especially tourism facilities, were not built in compliance with the regulation.

Land Use, Agriculture and Forestry Uncontrolled development has caused the loss of forest and of agricultural land. The area of productive agriculture land in Tabanan, which is widely known as the main source of rice producers in Bali, decreased over 5 years from 60,000 hectares to 22,000 hectares in 2006. About 30 percent of Bali’s rice consumption was supplied by the Tabanan regency.

The productive lands have been acquired by investors and turned into settlements or tourism facilities. Local government admits that it was diffi cult to stop land conversion. The rate of agriculture land conversion in Bali in the last fi ve years is about 400 thousand hectares per year threatening Bali’s food security.

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26 www.balidiscovery.com/update/update585.asp

• Migrating whale sharks and manta rays which thrive on the abundant plankton• Marine mammals including 22 species of dolphin, endangereddugong, Bryde’s whale, short-fi nned pilot whale, three species of sperm whales, humpback whale, Cuvier’s and Blainville’s beaked whales and the world’s least studied cetacean – Longman’s beaked whale.

Coral reefs are a valuable source of income for Bali, supporting a large marine based tourism industry as well as extractive activities such as fi shing. Bali’s famed coastline is approximately 430km long but about 86km is badly eroded. The Balinese local government attempted to reduce erosion by restoring parts of Bali’s southern coast but new developments continue to contribute to worsening coastal erosion.

There appears to be limited awareness about the importance of mangroves and other coastal ecosystems, which provides nursery areas for impor-tant fi sh stocks and coastal commodities that provide economic benefi ts for the locals. Mangroves also prevent the mainland from erosion and salt water intrusion.

The planned expansion of the airport of Ngurah Rai might destroy some many hundreds of hectares of mangroves. The project is scheduled to be implemented in the next 2 years and start to function in 2012 28.

27 WWF Coral Triangle Initiative28 A.A. Ngrh. Made Arwata, MSP, Stop Perambahan Hutan Bakau, Bali Post, 5 Nopember 2007

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Bali’s forests cover about 25 percent of the total island and are being degraded and converted through illegal logging for development purposes. Lack of law enforcement and economic pressures worsen the forest’s condition.

According to Popo Danes, a leading Balinese architect, Bali’s property development boom is driven by global forces that encourage wealthy foreign investors to take advantage of Bali’s relatively cheap property and construction costs.

Mr. Danes calls for restructuring the system and establishing a central registry or clearing house to educate and ensure that all land transactions are correct, and clearly understood by all parties. Professional associations in the industry— architects, contractors, builders, notaries, lawyers, etc.—need to be part of this process.

Coastal Impacts and The Coral Triangle27

Scientists have identifi ed an area called the ‘Coral Triangle’ within the Indo-Pacifi c – its boundaries defi ned by marine zones containing 500 or more species of reef-building coral. The Coral Triangle echoes the richness and diversity of the Amazon rainforest, and is home to:• 76 percent of all coral species known to science• More than 3,000 species of reef fi sh and commercially valuable pelagic species including yellowfi n tuna, skipjack tuna, bigeye tuna, bumphead parrotfi sh, and Napoleon wrasse • Six of the world’s seven species of marine turtles including green, hawksbill, olive ridley, leatherback, loggerhead, and fl atback

Ketut Gede Dharma Putra, lecturer of Udayana University Bali, and member of the Integrated Coastal Management (ICM), GEF/UNDP/IMO Regional Program for Partnerships in Environmental Management for the Seas of East Asia (PEMSEA) said that coastal management in Bali must take an holistic view implementing a cultural approach that promotes and encourages community potential as well as local wisdom within the framework of sustainable infrastructure and other development.

Handicraft and Manufacturing IndustriesThree of the four main exports from Bali in the third quarter of 2007 came from the manufacturing industry. This industry employed 248,000 people in 2002 (14.5% of the workforce), over half of whom (54.5%) are considered a part of the informal sector. With a declining demand for souvenirs, which accounted for over 8 percent of foreign tourist expenditures in 2000, these people may suffer. However, these may also be offset to the extent that handicrafts producers are meeting export demand. These impacts may not be exclusive to Bali. Other regions in Indonesia depend on Bali not just for tourism demand (e.g., textiles, souvenirs, and vegetables), but also as a transit point for international exports.

Through tourist development, the government hoped to provide Bali with an industry that would have backward linkages to construction, agriculture, handicrafts, and employment thereby reducing dependence on central government resources (Picard 1989:13).

Export and ImportAs of July 2007, export from Bali reached US$ 22,424,932. Most of this was sent to Japan (15.6%), USA (12.8%), Singapore (12.1%), Italy (8.8%), and Germany (5.4%). Five main commodities exported in July 2007 were non-knitting clothing products (21.9%), jewelry (21.2%), fi shes and shrimps (16%), sandals/slippers (8.9%), and knitting products (5.8%). Compared with exported goods the month before, July exports were 11.7% higher29.

The import values per July 2007 reached US$ 2,940,644. Imported goods mainly came from USA (42.9%), Australia (18.5%), Hong Kong (14.7%), China (4.7%), and Singapore (4.1%). Main imports commodi-ties were machines/mechanical engine (46.7%), machineries/electrical equipments (14.2%), iron and steel equipments/tools (5.4%), jewelry (4.5%), and optical equipments (2.8%). Compared with imported goods the month before, July 2007 imports were 38% higher.

Most of the exported and imported goods in Bali are for activities related to the tourism industry.

The challenge is to offer eco-friendly operative best practice when it is still fi nancially more expensive due to lack of government support. Amanda Pummer, GM Alila Hotels & Resorts

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29 Berita resmi Statistik Propinsi Bali, No. 02/09/51/Th. I, 3 September 2007

Solid Wastes Issues Considering that the number of local and foreign visitors to Bali can total about 5 million and that the amount of waste generated per day is 0.5 kg/person per day on average, the projected 2,500 tons of waste create huge GHG emissions and opportunities to reduce this must be looked at. The largest volume of waste is generated in south Bali, especially Denpasar and Badung.

Integrated solid waste management for 4 regencies was established in Suwung with World Bank funding as part of the Bali Urban Infrastructure Project (BUIP) between September 1999 and June 2004. The scope of the BUIP was infrastructure development: road, drainage, water supply, wastewater and solid wastes infrastructure development for the whole island.

Overall, the solid waste management on the island remains poor, with much of the waste ending up in informal landfi lls or being dumped into rivers and ravines. However, with the Kyoto Protocol, proper waste management could become an investment opportunity.

Water Scarcity In 2000, about 73% of Bali’s water resources - springs, rivers, and natural lakes- was used for domestic, tourism and agriculture purposes. In 2006, this increased to the critical level of 85% (50-75% = close to critical level, 75-100% = critical level, > 100% = very critical). Rain water potential remains untouched. Only in rural areas of East Bali such as Karang Asem regency and the Bukit in South Bali rain water is captured via the roofs and stored in individual reservoirs.

Since 1999, salt water intrusion occurs in Kuta and reaches more than 1 km inland. Rizal diBoer predicts that clean water will become scarce in Bali. Aggressive water exploration and conversion of permeable surfaces into impermeable concreted or sealed surfaces could lead to land subsidence. Salt water intrusion is increasing, as are extreme high tides that cause inundation of low-lying areas30. Some areas in Bali can expect similar regular inundation as along the north coast of Java, near the cities of Semarang, Demak, Brebes, Tegal and Surabaya.

Rizal also predicts that mangrove areas will be threatened due to rising sea levels. A new technique of mangroves planting and conservation will be needed. In the future, small islands and the eastern part of Indonesia might expect more storms as a result from more tropical cyclones in Australia and in the Pacifi c.

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30 Interview, November 22, 2007

InfrastructureThe development of services such as road networks, water, and electricity has not kept up with the growing demand. Without due attention to planning procedures and laws, burgeoning development continues to put a lot of pressure on the island’s services. Only available in few loca-tions and unreliable, public transport in Bali has deteriorated, forcing more people onto motorbikes and other private vehicles. Nationwide, nearly 100% of public and private transportation use fossil fuel.

Power Supply Most of Bali’s electricity is supplied by 27 diesel power generating plants located all over Bali, the remaining 40% comes from coal power plants in East Java. Most of this supply is absorbed by hotels in the Badung Regency and Denpasar City.

Bali is unable to generate enough electricity to meet demand on the island. Hotels use up to 70 percent of the island’s total power supply in certain regencies. Large tourist developments require air conditioning. Coming from fossil fuel plants this increases greenhouse gas emissions. In addition, the energy effi ciency of buildings is often poor.

“Out of that 70 percent, some 35 percent is utilized to power hotels in the Nusa Dua area.”

Wayan Redika, Public Relation of PLN Distribusi Bali

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Energy Sources of Bali

Pesanggaran diesel power

generation plant22%

Gilimanuk diesel power generation

plant24%

Underwater sea cable from Java

supply37%

IPST Sarbagita2%

Pemaron gas power generation

plant15%

The electricity from Java is sent through three gigantic underwater cables across the Bali Strait. The State Electricity Company (Perusahaan Listrik Negara, PLN) is developing alternative energy sources at micro-scale, such as hydropower in the village of Tenganan and wind power in the islands of Nusa Penida, Nusa Lembongan and Nusa Ceningan. They are presently looking into more small-scale community-based alternative energy projects31.

A MoU of waste-to-energy plant was signed in early 2004 by 4 regencies and a private company consortium. The plant was to treat about 500 ton waste per day from the 4 regencies and was projected to generate power of about 9 MW. The investor also seeked carbon credit from CDM (Clean Development Mechanism) to increase the economic feasibility of the facility. Up to now the project is still in the initial stage.

31 Jakarta post 31/10

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If all Bali power customers could save at least 50 watt between 6 – 10 pm, we can save about 35 MW. This effort will reduce the black out schedule.

Wayan Redika, Public Relation of PLN Distribusi Bali

Potential Effects of Climate Change on Bali

CHAPTER 3

Environmental issues such as pollution and changing land use, while they contribute to climate change, are not new to Bali. With or without climate change, these issues need to be addressed for the sustainable future of the island. Climate Change can, however, serve as a trigger to unite environmental good practices in development planning and implementation.

Changes to the Physical EnvironmentSome of the following symptoms are already evident and are expected to become worse:- Sea level rises causing coast and beach erosion, inundation of fl ood plains, rising water tables, destruction of coastal eco-systems, salt intrusion in freshwater aquifers and, at worst, the total submersion of islands or coastal plains.- Warmer sea temperatures of 1-2 °C causes coral bleaching and coral mortality. This leads to a breakdown in the reef protection surrounding most tropical coastlines and an amenity loss for divers and snorkelers. It is predicted that coral bleaching will increase in intensity and frequency to the extent that it will occur annually by 2020.- Increasing storm frequency, especially in conjunction with rising sea levels, leading to damage to sea defenses, protective mangrove swamps and shoreline buildings, to beach erosion and storm-surge damage to coral reefs.

- Wider incidence of communicable diseases, an increase in temperature and rainfall can extend the habitat of vectors such as mosquitoes. The past year has seen a marked surge in the insistence of mosquito-born diseases such as Dengue Fever in Bali, even further up into the cool mountainous interior.

The Built EnvironmentClimate change is already causing planning authorities to revise many aspects of policy, such as redefi ning fl ood plain risks and discouraging development on them. In the tourism sector there will be an increasing need to take climatic factors into account specifi cally in tourist areas, of which coastal areas are likely to be the most important.

Coastal destinations will be most adversely affected by rising sea levels and mean temperature due to inundation and salt water intrusion causing an increased salinity of soils. However, Bali is even more greatly at risk due to the location of the Ngurah Rai airport, which may be underwater, or at least suffering regular inundation by 2050 due to wave action un-less mitigating action is taken.

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The Tourism Sector The loss of islands, coasts and beaches, the playground of a signifi cant percentage of the world’s leisure tourists, are anticipated to produce the most severe repercussions for the tourism industry. While the impacts of climate change vary and are likely to manifest themselves in a variety of ways, what is certain is that the tourism sector has to show it is adaptable to changing conditions. Some changes may indeed favor an increase in tourism – such as longer drier periods. However, the majority of changes – rising temperatures and sea levels and increasing storm frequency, in particular – present the industry with huge challenges.

Key IssuesTo ensure sustainability or survival of its economy, Bali will need to address the following long term issues:• By 2050, average temperatures in Bali will have increased, increasing the energy requirement for cooling unless improved building design through passive cooling is implemented;• On the coasts, it will be necessary to address erosion from rising sea levels.• Planning maps need revision to move building lines away from the beach.• Tourism in the low-lying parts of Bali may be destroyed by inunda-tion by washing waves during extreme high tides. Most of these areas do not have much of a buffer zone separating built areas from the rav-ages of the sea.

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• Displacement of Bali’s population from low-lying areas would add unprecedented pressure and demand to the island’s interior for housing land. • The island’s infrastructure needs to be adapted to changing weather patterns.• Crops need to be adjusted to suit new weather patterns to ensure food security.• Water retention capacity and security of water supply needs to be improved, with priority to watershed protection. This requires conservation and restoration of forest resources.• Address existing solid waste and wastewater management issues, allowing for potential changes in mean sea water level and available land.• Prevention of communicable diseases by vector / vermin control.

Adaptation MeasuresEach situation calls for its own individual solution, but measures that the industry might implement include:• Creating artifi cial attractions to replace natural ones if the appeal of the latter diminishes, thus changing the character of Bali considerably.• Development of alternative markets and marketing strategy to cope with an expanding or a diminishing market (including stronger promo-tion of marine, cultural, eco and domestic tourism).

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• Facilitating coping with changes in the tourist season.• Cooperation with governments, communities, civil society groups and other industries in order to deal with problems such as those associated with health, availability of water and vulnerability of infrastructure.• Recognition of the vulnerability of eco-systems such as mangroves and coral reefs• Recognition that the tourism industry is required to meet more stringent requirements.

Confl ict on costal zone utilization can be minimized through an integrated coastal zone planning and land-use which accommodate the multipurpose function. Stakeholders’ participation through participatory approach will guarantee the principles, processes and coastal zone management approach fully understood by all stakeholders.

Clearly, the potential socio-economic impact of climate change on Bali will have far greater consequences than any of the disasters Bali has survived so far.

“Bali is an island of only 3.5 million people and a relatively small industry base. The effect that Bali will have on climate change would not be dramatic. Other fi rst world countries with huge econo-mies will determine whether there could be climate change or not.” Hotel Manager, Sanur Plaza

Despite the lack of enforcing regulations when it comes to the environ-ment, sections of the tourism industry in Bali have been surprisingly proactive in exercising their duty of care.

Key Respondents – Background to this Study To assess the attitudes, awareness and projects or plans in place, in response to climate change, two workshops were conducted. An industry stakeholders meeting was held with 20 participants in October, and a multi-stakeholders meeting with 27 participants in November. Questionnaires distributed through workshop participants gleaned 34 quality detailed responses. To gather further data, top-level management of professional tourism associations and governing bodies were inter-viewed. Community groups and NGOs directly involved in conservation, community education and development were also interviewed.

An overwhelming majority expressed concerns for Bali, citing problems in policing the implementation of existing environmental policies due to corruption as the root cause of gross environmental abuse in Bali. There is a great concern for water shortage, change in land use and weather patterns. The lack of adequate infrastructure is also widely considered as a hurdle to improving effi ciency and sustainability. More community-based tourism was suggested to help Bali keep its cultural identity. Looking ahead, education was seen of the fi rst and foremost importance to raise awareness as well as the welfare of the population.

Attitudes towards climate change were very responsive, with many participants recognizing and providing examples of symptoms of climate change already prevalent on the island. Due to changes evident in climatic patterns such as unpredictable and prolonged rainy and dry seasons, for instance, food security in Bali is increasingly becoming a concern.

Diving & coastal based tourism operators expressed their concern for coastal degradation, especially coral bleaching, destruction of habitat, beach erosion, and lack of fi sh. Coral reefs have been threatened by the use of cyanide in capturing ornamental fi sh, bomb-fi shing, over fi shing, coral mining, anchoring activities, unhealthy ecosystems of surrounding villages in general, staff and tourists attitudes or lack of awareness, waste & sewage from hotels and upstream villages ending up in the sea, uncontrolled water sports activities, and especially coastal land acquisition for development. Education initiatives from diving companies working to improve methods of harvesting the sea’s bounty and provide better livelihoods for locals have seen improvements to habitat, especially in Pemuteran, Tulamben, Nusa Lembongan to name a few. These success stories can be replicated to further address Climate Change concerns.

The Role of the Tourism Industry

CHAPTER 4

20

32 Retno Gumilang Dewi, The Status of Energy Effi ciency Projects in the Indonesian Hotel Industry, The Center for Research on Material and Energy, Bandung Institute of Technology, March 2003

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The tourism industry is very concerned about these issues, but cannot be expected to comply with European standards overnight, as a lot of the necessary infrastructure is not yet available. Infrastructure should be provided as a service by the government, and is not something the industry has to create on an ad-hoc basis.Ngurah Wijaya, Bali Tourism Board

Programs Already ExistingTourism stakeholders are already undertaking a number of initiatives to improve the sustainability of their business practices. The Bali Hotel Association has 75 members of 3, 4 and 5 star-rated hotels as well as boutique hotels. Twenty-one of these members have been accredited and benchmarked as part of the Green Globe Certifi cation process to measure their continuous efforts towards sustainability. Besides these hotels, a number of eco-lodges have also sprung in the Balinese landscape.

Dozens of eco-village and agricultural tourism initiatives have started up across the island. While there is some skepticism on the intensity of the tourism and business aspects of these initiatives when compared to the agricultural or cultural practices being protected, i.e. the ratio of enclosed hardstand cafes and gift shop areas to open green areas, the community enthusiasm behind these projects is very promising. A few success stories include several villages offering rice fi eld walks, herb walks, bird and butterfl y walks, mangrove walks, cultural classes for guests, as well as a large number of diving initiatives such as diving for the disabled, reef check certifi cation, and coral rehabilitation. Agro-tourism, where farmers supplement their income by showing tourists their methods of cultivating and processing coffee, cocoa, tea and cloves, to name a few, is the latest trend, with dozens of new businesses springing up towards the higher central slopes of the island.

Barriers and Limitations Presently, the tourism industry is self-regulating. Government regulations are in place, but not enforced and integrated. There is no offi cial independent assessor for eco compliance and best practices. The government is yet to provide incentives to give recognition for players who are leading the way in best practice, and does not yet punish polluters. Regional autonomy has spurred uncontrolled development and changing land use. Professional development of policy makers and enforcers is crucial in raising awareness of these issues.

On energy conservation and effi ciency, hotel operators generally recognize the cost reduction potential of energy conservation measures. However, many of these potentials have not been implemented due to a number of barriers such as:32

- Lack of information distribution regarding energy conservation opportunities (ECOs), energy effi cient equipment and services, and energy management practices and projects that actually demonstrate the fi nancial benefi t of energy effi ciency measures.- Chief engineers have limited capability in identifying and further communicating the fi nancial benefi t of energy conservation measures to top hotel management- Limited number of institutions who can provide necessary support in fi nancing the investment for energy effi ciency projects- No provisions of incentives such as tax credits specifi cally intended for energy effi ciency measures.

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“Although small, we can all contribute to mitigate global warming by reducing our consumption of goods and energy.”

Farish, Bali International Diving Professionals

Many businesses are beginning to recognize fi nancial incentives to undertake energy conservation measures following sharp increases in energy prices in the Indonesia.

However, to change this “interest” to a “desire” for change, staff training to conduct energy audits and cost benefi t analysis of energy effi ciency is required. “Application” would only be widespread when projects can actually demonstrate the cost benefi t of energy effi ciency measures.

The State Electricity Company (Perusahaan Listrik Negara, PLN) applies high fi xed costs, giving very little incentive for energy effi cient measures. In most cases, cost savings due to conservation measures are rendered insignifi cant due to the pricing structure of PLN.

Lacking a reliable public transportation system, Balinese have been forced to use private motorcycles and cars to go to work and school. In fact, the Indonesian Motorcycle Association reports a density of 1 motorbike for every 2.8 - 3 people on this island. In Indonesia, the province of Bali has the highest motorcycle density, rivaling the capital Jakarta. The provision of public transport is thus a great challenge the island must face in curbing emissions.

OpportunitiesForeign tourist arrivals to Indonesia between 2005 and 2009 are projected to reach 10 million per year with spending amounting to $10billion. Ecotourism initiatives in Bali are developing rapidly, and include activities on beaches, farms, forests and hill areas. Besides creating an opportunity to raise environmental awareness among visitors, these projects incorporate the three major pillars of economy, community involvement and ecological conservation. They champion the traditional wisdom of Tri Hita Karana, espousing harmony between humans and the environment, their fellow men and their idea of the divine.

With these initiatives in place, and proper certifi cation and auditing, Bali could market itself as an eco-tourist destination, vying for quality tourists who are willing to spend more and stay longer, giving much more benefi t to the island than the current short-visit visitors.

Green Globe Certifi cation, Energy Effi cient award, Natural Guide recommendation, Eco-hotel rating and opportunities to get carbon credits on Voluntary Emission Reductions from the energy sector is possible. Retrofi tting and installing energy effi cient measures, or increasing the use of renewable energy sources replacing fossil fuel generators are now needed.

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A GM of a hotel can edu-cate at all levels, community best practice and behavior supporting local culture and environment, staff training for the future and to realize minimum impact business habits within operations and consumer, to offer eco-friendly hotels and redefi ne bad hotel habits and change consumer behavior.

Amanda Pummer, GM Alila Hotels & Resorts

A concerted effort must be made to diversify the sources of growth behind the Balinese economy. While tourism has brought many benefi ts to Bali, its success has created economic vulnerability due to low diver-sity of the Balinese economy. While the number of arrivals is gradually increasing, there has been a noticeable decline in the average spending and length of stay. Development of tourism in Bali has been concentrated in the island’s South, with the north lagging behind, limiting economic opportunity in those regions.

In acknowledging worldwide changes in the tourism economy, efforts to mitigate further climate change and supporting adaptation strategies for Bali should not delay building a more diverse and sustainable economy. The terrorist attacks in Bali have underlined the on-going vulnerability of Bali’s tourism sector. Bali has survived it, with arrival numbers recovering despite unfavorable travel warnings. The economy is bouncing back and the middle class is spending. However, climate change is a different challenge altogether. Bali is not alone in facing this global challenge, and needs to actively plan how it will adapt to a warming world.

There is no doubt that tourism is very important to the economic survival of Bali. The outcome of our interviews and questionnaires corroborate with the post-Bali-bombing World Bank economic study, confi rming that if tourism were to go, livelihoods on the island would be greatly affected. Environmental degradation has been of concern in Bali. Compromises to accommodate modernity and mass tourism have been made at the expense of the environment. Climate Change is aggravating these issues. However, because of its visible and measurable nature, it can become a rallying point for unifi ed action. In facing the challenges of Climate Change, the tourism industry of Bali has a very important role to play.

Responsible TourismConsidering the island’s resources and carrying capacity, the industry needs to set benchmarks, especially for the provision and use of services such as public transport, water, electricity, solid waste management and waste water treatment to mitigate the potential impact and anticipate future scenarios. Tourism stakeholders, civil society groups and supporting industries also need to be brought on board, for instance to

Conclusions & Recommendations

CHAPTER 5

24

promote and implement more environmentally friendly transportation options. Tourist transportation providers and car rental companies should be brought on board to employ a cleaner fl eet of vehicles.

Hotels can offer greater economy and eco-friendliness by providing alternatively fueled vehicles. The rental of vehicles while traveling or touring is quite commonplace and the increase of vehicles that create less pollution can and should be sought. With appropriate infrastructure in place, the conscious renter of a vehicle can seek vehicles that run on natural gas, electricity, or are hybrid-electric and clean air gasoline-powered. Car rental companies may not yet have them but more and more do and the more customers that request and pressure for them, the more these companies will need to offer them.

For a sustainable future of the island and its tourism industry, there is a need to shift the tourism strategy and orientation in Bali to responsible tourism. Applying the local wisdom of Tri Hita Karana, tourism can play a major role in not only improving its surrounding environment in general by conserving energy and avoiding unnecessary wastage; it can also provide a more sustainable livelihood for the welfare to the local community as well as an environmental awareness campaign that can shift travelers’ attitudes for the better.

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Responsible TravelersTravelers are in a position to be the most effective independent observers of environmental abuse or unsustainable practices. They can vote with their wallet in choosing where to go, and are the most effective lobby group in reminding the tourism industry players of their obligations. In promoting Bali as an eco-tourism destination, the tourism industry should empower visitors with knowledge to respect and implement the rules they have in place.

Unnecessary laundry in hotel rooms that waste water and detergents can easily be avoided when visitors request not having hotel towels and bed linens changed daily. The conscious traveler will demand less packaging when they shop and avoid unnecessary plastic bags. The industry needs to do their part by providing facilities for recycling and re-use such as providing top-up services to encourage water bottle refi ll.

There are ways to foster green travelers. The very act of travel can be made more environmentally friendly as well. Choosing to walk or using a bicycle when on holiday, for instance, or the use of hotel pickup/drop-off services instead of renting a car. All of these are more economical for the traveler and more environmentally friendly.

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Consumer pressure is very effective. The more travel providers or food and service providers are forced to respond to a greener consumer, the more the tourism industry will have to take care about what they do and how they do it.

Lobbying The tourism industry needs to lobby the Bali Provincial government to strengthen the tourism strategy by aligning it with conservation efforts that encourage synergy with other departments and Ministries. The Bali Tourism Board, tourism stakeholders, NGOs, and community groups need to push for a more responsible tourism in Bali, and the promotion of Bali as a destination for responsible travelers.

Existing channels can be used to lobby for enforceable island-wide planning, regulation, professionalism & training, implementation of policy, education, management, and information dissemination. Besides shifting attitudes, many policies need to be reviewed and / or put in action. For instance, instead of rewarding big energy users, PLN needs to give incentives for players who implement energy effi ciency measures.

Reasonable benchmarks of energy effi ciency should be introduced. The same incentives should be given to the tourism industry that has already shown initiatives in saving water and managed their waste in a proper way.

Climate Change must be taken into account in Bali’s future development strategies. Adequate studies for suitable measures need to be developed in cooperation with credible universities and stakeholders. Tourism revenues need to be reinvested in a way that promotes the diversity and health of the Balinese economy for the people of Bali.

The tourism industry could be more effective in creating eco-tourism initiatives by working together with environmental groups and local communities. The diving industry is a leader in this, working together with various NGOs in preserving coral reefs. These projects, along with development of marine tourism and existing eco-tourism initiatives, can create more sustainable tourism.

By encouraging responsible travel and attracting responsible travelers, the tourism industry can also create synergy through its promotions, between livelihood and environmental improvements.

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1. Association of Indonesian Tour & Travel Agencies, ASITA with 320 members.2. Gahawisri, the island-wide Watersports Association with 178 members agencies, including ten raft operators. 3. Himpunan Pramuwisata, the island-wide Guide organization with over 8,000 members.4. The transport association PAWIBA, with 126 members5. PUTRI, an association of 85 tourism and recreation destination operators. 6. SIPCO, the Society of Indonesian Professional Convention Organizers with 23 member organizations.7. PATA, the Pacifi c Asian Travel Association 8. Bali Village, a local promotions board with 230 member institutions.9. PHRI/IHRA, the Indonesian Hotel Restaurant Association(including the Bali Hotel Association), with members comprising over 1,200 hotels(star-rated and non star-rated), 700 villas and 300 restaurants.

The Bali Tourism Board aims to develop and promote Bali as destination for marine tourism, MICE, outdoor activities as well as cultural and festival activities. As part of their development strategy BTB currently promotes the diversifi cation of tourism to keep balance between economic growth, cultural and environmental heritage. Relatively organized, the proper channels have an important role to play in establishing benchmarks and best practices, and can be used for more effective and effi cient dissemination of environmental initiatives and policies.

Overview of Industry Associations and Government Regulating Authorities

APPENDIX A

The Bali Tourism Authority (Dinas Pariwisata Propinsi Bali), under the Ministry of Culture and Tourism, is responsible for giving licenses to the tourism industry. It works together with the Bali Tourism Board (BTB), which consists of representatives from the following 9 professional tourism organizations:

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Bali Case Study, Institute for Sustainability and Technology Policy, Murdoch University, 2000 www.balidiscovery.com/update/updatexxx.asp, www.balidiscovery.com/update/update585.aspBali Post, October 20, 2007Bali dalam Angka 2007, BPS Bali Province 2007Berita resmi Statistik Propinsi Bali, No. 02/09/51/Th. I, 3 September 2007BPS Indonesia, 2006Bruce Mitchell, “Sustainable Development at the Village level in Bali, Indonesia,” Human Ecology 22 (June 1994): 191. Confronting Crisis: Impacts & Response to the Bali Tragedy, January 2003Dinas Perhubungan 2006, Bali dalam Angka 2007, BPS Bali Province 2007Erlet Cater; The Geographical Journal, Vol. 161, 1995Final Report, Proceedings of the 1st International Conference on Climate Change and Tourism, Djerba, Tunisia, 9-11 April 2003 Interim Consultative Group on Indonesia, Informal World Bank Staff Paper, Vulnerabilities of Bali’s Tourism Economy: A Preliminary Assessment, November 1, 2002Interview with Prof. DR. I Nyoman Erawan, Head of Post Graduate Department of Economic Development of Udayana University, November 16, 2007 Jakarta Post, October 31, 2007Libby Moffet, “Indonesia: Freeze Imposed on Bali Hotel Projects,” Australian Financial Review, (18 April 1991). Marthen Welly, Pemanasan Global dan Terumbu Karang, The Nature Conservancy, 08 November 2007, http://www.indonesiareef.comMichael Hitchcock, Victor T. King, and Michael J. G. Parnwell, eds., Tourism in South-East Asia, (London: Routledge, 1993), 79.National Geographic, November 2007Picard, M. (1996) Bali: Cultural Tourism and Touristic Culture. Singapore: Archipelago Press.Proceedings of the 1st International Conference on Climate Change and Tourism, Djerba, Tunisia, 9-11 April 2003Source:http://www.datastatistik-indonesia.com/component/option,com_tabel/task,show/Itemid,182/Yuyun Ismawati, Case Study on Investments of Environmental Infrastructures in Bali, Indonesia, PEMSEA, October 2007

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Find out more about how you can participate in WWF’s conservation efforts and make a natural investment in the Coral Triangle.Contact:Lida Pet-Soede, WWF-Coral TriangleTel/Fax: +62 361 730185E-mail: lpet@wallacea.wwf.or.id

WWF is one of the world’s largest and most experienced independent conservation organizations, with almost 5 million supporters and a global network active in more than 100 countries.WWF’s mission is to stop the degradation of the planet’s natural environment and to build a future in which humans live in harmony with nature, by:- conserving the world’s biological diversity- ensuring that the use of renewable natural resources is sustainable- promoting the reduction of pollution and wasteful consumption.

Photo credits:Rise paddy fi eld, Bali, © Muriel Ydo; Coral reef, © Cat Holloway / WWF-Canon; Cartoons, © Jango Pramartha; Melasti ceremony in Pantai Seseh, Bali, © Muriel Ydo; Traffi c in Denpasar, Bali, © Muriel Ydo; Mount Batur, Bali, © Kadek Krishna Adidharma; Diver © John Delfi 2007

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