Is the Bali dream dead?

TRENDING IN THE TROPICS

Is the Bali dream dead?

BY HELENE M AND ANASTASIA SILVER

For almost a year, the hot topic in Bali has been the skyrocketing rental prices. How much higher will they go? When will things settle down? Is it time to move on? Or maybe time to cut the losses?

Yes, we knew that with the borders reopening tourists would flood back into Bali looking to “eat, pray and love” even harder after two years of lockdowns and restrictions. We all expected prices to return to pre-covid levels and perhaps, a temporary spike until tourism levelled out and things returned to the pre-pandemic normal. But almost a year later and prices are still 3-4 times higher than before .This is the new Bali.1-bedroom properties that were listed between IDR 4-6million per month in 2019 are average at over 15 million per month. Luxury villas that cost 20 mil per month now cost over 50mil. And while it is a huge blessing for the Balinese to finally have the economy up and running again, long-term residents of Bali are are still struggling to adjust to this shocking change. Online housing forums and chat groups are full of people who can no longer find long-term housing at what they consider to be reasonable rates.

“We are now paying Miami and London prices to live in third world infrastructure.”

Maria from Germany tells us that she chose to live in Bali in 2017 because it was a beautiful island, full of culture and budget friendly; a place where her euro could stretch further and “no more financial stress”. She was happy to give up the modern conveniences and developments of her home country to live a more laid-back, rustic lifestyle in Bali at a pocket-friendly price. And during the pandemic when all the tourists vanished and the economy of Bali almost crashed, Maria and others like her stayed put keeping landlords afloat, restaurants and businesses open. Expats like Maria proved to be the bedrock of the economy. But now, finding themselves priced out of their homes, they are starting to ask questions.

Is it worth paying more to live in an increasingly congested, polluted, noisy town with views of construction sites replacing rice fields? Is it worth being stuck in traffic fumes for hours on village roads to reach trash-filled beaches that can no longer handle the growing population?

Is the Bali Dream over? Is it time to move on to destinations that are offering similar lifestyles at more competitive prices?

Marc Yannick Ceyton is adamant that the Bali dream is well and truly alive: “All you have to do is move a few miles away from Canggu and other hot spots that make up a very small part of Bali.” The island is full of beautiful landscapes — jungles, mountains, beaches and villages steeped in authentic, rich culture. Paradise is still here for the people who can afford it, or who don’t mind living an ultra-simple life. People who want to be in more fashionable, cosmopolitan, chic areas close to trendy restaurants, spas and clubs will continue to pay more and outprice the previous inhabitants. These are the normal capitalist market forces of growth, gentrification and globalization mirroring what happened and is happening across the world.

Bali’s policy makers recently announced that they want to discourage budget travellers and instead rebrand Bali as an exclusive destination for upscale tourists and investors. Meaning that if you find yourself outpriced — too bad, we have other plans.

And plans they have! Some mind-boggling projects are propping up, such as the futuristic Russian-backed Nuanu city occupying 44 hectares of land. Infrastructure projects to support these developments are on the way. There is talk of projects like Gilimanuk-Mengwi Toll Road, which is currently under development by the government and will help to ease congestion around Mengwi while also allowing the development of tourism in the poorer villages along the road. There is also heavy investment in Nusa Dua and other tourist areas to support the booming resort towns coming up there, surely benefiting not only to the investors and real estate sector, but also to the local community of land owners and workers.

Indeed, a lot of local Balinese are upbeat about the growth. According to Sari, a lawyer from Malekat Hukum Legal Services, the development has helped local communities, created more wealth, employment opportunities and empowered previously impoverished villages. In her particular case, she grew up in Dalung near Canggu and when the land prices went up, her family became quite prosperous and were able to send her to the UK for a firstrate education. She counts her blessings for that opportunity.

Not all of the local community is equally gleeful. Like everything else, the growth comes with pros and cons. “It is the nature of duality in all things,” Sari explains in philosophical tones. Mistakes and miscalculations happen, such as families selling their ancestral land for money that runs out within a decade, leaving the new generation with nothing. It has been a common issue since the 90s in Kuta and Seminyak. This problem of selling freehold titles (instead of the less permanent leasehold titles) to non-Balinese Indonesians and foreign-owned companies still remains an issue. Seems that investment and long-term wealth management is too new of a concept for a lot of locals to grasp. And it’s not just the future generations with hypothetical future problems.

Locals working in the new trendy areas find it increasingly unaffordable, just like the expats.

Dayu told us that she moved from Lovina to Canggu to work in a restaurant but prices in the area were too high for her so she had to find a room in Tabanan (approximately 40 minutes away).

There are concerns that the current rate of growth is destroying Bali’s nature and culture — precisely what makes the island so attractive in the first place.

Conservation International Indonesia warns about serious issues already in full bloom, such as diminishing water reserves, disturbance of the marine and wildlife, and, of course, the waste pollution. It comes as no surprise that some choose to act in protection of their heritage and not give way to the ‘normal’ forces of capitalism. 10 years ago, Bali saw local communities coming together in protests to eventually block an ambitious development plan consisting of 12 artificial islands with a golf course, theme park, and a Formula One race course. The triumph was, however, shortlived. During the months of COVID-pandemic a discreet move was made allowing sand mining as well as extension of the harbour and the airport. Money does seem to speak.

It remains to be seen how Bali will handle the current wave of the world’s fascination with the island. Will the prices hold or are we in a bubble that will soon burst? Will the infrastructure projects hold? Will the investors and their money feel safe amidst the corruption concerns? Will the pollution and the water shortages and the traffic congestion be adequately addressed? Will the people keep coming? At this point we are left with more questions than answers. Excited and uncertain, we watch.

Of one thing we are sure — life in Bali has changed irreversibly with mixed fortunes for everyone.