Bali has always been a place people dream about visiting. Now the numbers are catching up with the dream. In 2025 the island welcomed 6.95 million foreign visitors, almost 10% more than in 2024, plus 26.6 million domestic trips.

So when people talk about the next 20 million, it’s a fair question: can the island cope? Our short answer is yes, but not everywhere and not without changes. Here is what we see on the ground and what it means if you invest in Bali.

Where the pressure is visible

Canggu, Seminyak and parts of Uluwatu grew very fast. Rice fields turned into villas, new cafés open almost every week, and roads built for a much smaller population now carry far more scooters, taxis and trucks.

The same areas have the most competition between villas. In Canggu, Berawa and Pererenan some operators report listing growth of over 40% a year. More villas chasing the same guests means lower occupancy and lower prices.

What is already being done

Growth is not being ignored. Three things are worth knowing:

• Tourist levy. Since 14 February 2024, foreign visitors pay IDR 150,000 on arrival. The money goes to protecting Bali’s environment and culture.

• A new toll road. The planned Gilimanuk–Mengwi toll road would run 96.84 km between western and central Bali. The tender is planned for 2027 and the target for opening is 2031.

• A second airport. The North Bali airport is planned in Kubutambahan, Buleleng, and is part of Indonesia’s 2025–2029 national development plan. In July 2026 President Prabowo said he supports speeding it up. It is still in the planning phase, and no construction or opening date has been announced.

The honest picture is that most of this takes years. Roads and airports will help, but they won’t fix traffic in Canggu next season.

Growth is starting to spread

Tourism is slowly moving beyond the busiest spots. Within Bali, calmer areas such as Sanur, Amed and the north are growing at a more balanced pace. Outside Bali, destinations like Lombok and Labuan Bajo are getting attention and investment, which should take some pressure off the island over time.

What it means for investors

More tourists doesn’t automatically mean more profit for every villa. A few things matter more than the headline numbers:

• Location. Demand is strong in places with limited land and a clear reason to visit, and weak where everyone built at once.

• Timing. New infrastructure takes years. We prefer to invest in areas that work today, not in areas that need a road or an airport to work.

• A clear guest. Villas that offer something specific for a specific guest stay booked, while look-alike villas compete on price.

Bali isn’t going to stop being popular. The island has reinvented itself many times, and the next phase is about managing growth better, not stopping it. For investors, that means choosing carefully where to be.

Want to talk about where we see demand holding up? See our current projects or write to us at hello@indovestor.com.