Author: Katrin Büchenbacher | Source: NZZ | Publication Date: 07.11.2025 | Summary Reading Time: 3 minutes
Executive Summary
Bali is experiencing a dramatic transformation due to the influx of digital nomads, changing from a traditional fishing and farming village to an overcrowded hotspot with severe infrastructural and cultural consequences. The Indonesian government has specifically targeted digital nomads since 2018, leading to uncontrolled construction boom, traffic collapse, and cultural displacement. Recommendation for Action: Companies with remote work strategies should consider the sustainability impacts of their location policies and include local communities in their considerations.
Core Topic & Context
The Indonesian island of Bali is transforming from a traditional paradise to an overcrowded tourism hotspot due to the massive influx of digital nomads. Since 2018, the Indonesian government has specifically promoted Bali as a destination for remote workers, leading to unforeseen social and ecological consequences.
Key Facts & Figures
• 5,000 digital nomads live in Canggu alone among only 8,000 residents (as of 2023) • 16 million tourists visited Bali in 2024 - four times more than residents • 60% of service workers come from other Indonesian islands • 80% of Balinese work in the tourism sector • Digital nomads can stay one year with special visa without tax obligations • Travel time airport-Canggu: 3 hours for 20 kilometers • New subway network planned until 2031
Stakeholders & Affected Parties
Main Affected: Local Balinese population, traditional fishermen and farmers Beneficiaries: Real estate sector, tourism industry, digital nomads from Europe/North America/Asia Industries: Tourism, real estate, IT/Tech, online marketing, hospitality Geographic: Focus on Canggu and Ubud, impact on all of Bali
Opportunities & Risks
Opportunities: • Jobs for Indonesian population • Economic growth and foreign currency inflow • Infrastructure development
Risks: • Cultural identity loss of the Balinese community • Environmental destruction through uncontrolled construction boom • Infrastructure collapse due to overload • Gentrification and displacement of locals • Loss of original attractiveness for quality tourism
Relevance for Action
For Companies: Remote work policies should consider sustainable destinations and assess local impacts. Time-critical: The trend continues to intensify - early strategic positioning for responsible remote work required.
Market Indication: Other destinations (Thailand, Portugal, Mexico) could experience similar developments.
Fact Checking
✅ Central figures and developments confirmed through research ⚠️ To be verified: Exact current numbers of digital nomads in Canggu (article refers to 2023)
Bibliography
Primary Source: Die Insel Bali war ein Paradies. Dann kamen die digitalen Nomaden - NZZ
Additional Sources: Digital Nomad Visa Programs Worldwide - Nomad List Indonesia Tourism Statistics 2024 - Ministry of Tourism Bali Infrastructure Development Plan - Asian Development Bank
Verification Status: ✅ Facts checked on 07.11.2025