TOURISM DESTINATION ANALYSIS
CANGGU BALI, INDONESIA
Team 4, Group 15: Frangipani
Breda University of Applied Sciences, 14 May 2021
,Table of content
Introduction 2
1. Typification 2
2. Context 2
2.1 Location & history of the area 2
2.2 Accessibility of Canggu 3
2.3 Current markets and pull factors of Bali and Canggu 3
2.4 Socio-cultural systems 5
2.5 Structure and role of the government 5
2.5.1 Laws and regulations 6
3. Current developments 7
3.1 Developments over time in the area 7
3.2 Business developments in Canggu 8
3.4 Global drivers of change 9
4. Impacts of tourism in Canggu 10
4.1 Impacts 10
4.2 Host-guest relationship 12
5. Stakeholders and networks 13
5.1 Tourism businesses in Canggu 13
5.2 Stakeholders networks in Canggu and inter-relation between businesses 14
6. Image of Canggu 16
7. Identity of Canggu 17
8. Future perspectives 18
8.1 Future development of Canggu 18
8.2 Covid-19 18
8.2 Sustainability 18
8.3 Future plans and goals of the government 18
Bibliography 20
Appendices 28
Appendix 1: Netnography 28
Appendix 2: Coding table netnography (Beerli & Martin model) 61
Appendix 3: Spiderwebs graphs (image results) 63
Appendix 4: Interviews 64
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,Introduction
As students in Tourism management-Destinations, we were asked to conduct a Destination Analysis
of Canggu in order to determine how tourism has affected the area, gain insight into the challenges,
developments that are taking place in the area and what future perspectives of the destination are.
The following research questions were used to have a better understanding of the situation:
1. What are the most important developments that influenced and are influencing businesses in
Canggu? And what macro-environmental factors influence these developments?
2. What challenges/impacts of tourism do local businesses and residents face in Canggu?
3. What/who are the stakeholders that play an important role in the development of tourism in
Canggu?
4. How do tourists perceive Canggu and Balinese people?
5. How does the local population perceive tourists and tourism developments?
The whole Destination Analysis has led us to a typification of Canggu, to be found below, which
contains characteristics that make up the destination, touristically and non-touristically.
1. Typification
Canggu, once a quiet fishing village surrounded by rice fields with few restaurants, in the south of
Bali, is a destination of rapid development in the past few years and has changed into a trendy and
greatly westernized up-and-coming holiday destination under control of the local banjar. This always
under-construction village attracts Australian, Chinese and European surfers, yogis, digital nomads
and expats seeking a relaxed and inexpensive life by visiting the many healthy-food restaurants,
shops, fitness centers, co-working spaces and surfing beaches accommodation is focussed on villas
and guest houses. Traffic jams, pollution and gentrification are daily issues due to tourism
development and great use of scooters on the limited and underdeveloped infrastructure. In the
upcoming years Canggu will keep developing, focus on sustainability and become increasingly
popular.
2. Context
2.1 Location & history of the area
Canggu is a coastal village with a 10 km stretch of beach
on the southwest coast of Bali, Indonesia. Canggu is
located in the Northern district of Kuta, a short drive up
north away from the well-known destinations Kuta and
Seminyak. The location of Canggu from a tourist's
perspective is ideal. It is only an hour from the airport in
Denpasar and is centrally located in Bali. This makes
Canggu a great starting point to begin a trip.
Until a few years ago, Canggu was only a “sleepy” fishing
village where the only tourists were Bali expats and surfers or people who went to learn how to surf.
Mostly unknown, even by balinese, peaceful, surrounded by rice fields and with only “warungs”
(indonesian restaurants) at every corner, Canggu was an oasis for all those pioneering travelers in
search of relaxed, surf vibes. Most of the roads were still unpaved or irregular, cows could easily be
found scrolling around more than tourists; its only popularity were the perfect waves for surfers and
the relaxed atmosphere around the rice fields. Locals were mostly relying on rice farming and family
businesses.
When nearby areas became overcrowded, bringing some initial development in Canggu as well, the
little secret village became more visible to outsiders and with the increase of tourism in more popular
areas such as Seminyak or Kuta, tourists started to move to other areas and discover this “little gem”,
as often described. What once was a small community of balinese living alongside european and
australian expats, now seems to be the paradise for digital nomads and instagrammers looking for the
perfect picture.
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,Nowadays, warungs are being replaced by bohemian beach clubs and cafes; rice fields keep
disappearing under the construction of villas and hotels, enhanced also by the increased taxation;
local balinese do not live there anymore due to increased cost of living, leaving the place inhabited by
only expats and digital nomads. The local economy is more and more dependent on tourism and the
authentic, local culture is increasingly disappearing under the Western influence.
2.2 Accessibility of Canggu
Accessibility is especially important when it comes to tourism: if tourists cannot reach a destination
then they will not visit. The accessibility to Indonesia is decent, most of the tourists come to Indonesia
by plane. When entering by plane, most tourists fly to Soekarno-Hatta International Airport (Jakarta)
or Bali’s Ngurah Rai international airport. (Ministry of tourism Indonesia, 2019) Some tourists also
come to Indonesia and Bali by ferries if they visited other islands before. What we can see from this is
that Indonesia in general but also Bali is easily accessible by plane or ferry.
From the international airport Bali to Canggu is only a 45-minute drive, by car. The most popular
means of transportation in the region of Canggu are: Bemo’s (vans/minibuses) and motorbikes.
(Lonely planet, 2021) In Canggu there is no public transportation, (Jay and Alina, 2021) so this is not
an option for this area, but it is possible in other areas of Bali. According to several blogs for the
netnography, we see that the roads in Canggu are mostly unpaved and therefore not easy to drive.
There is a famous street called The Shortcut, a paved road that connects the two sides of the area,
however it is a small and dangerous road and a lot of accidents happen there due to traffic and
congestion. (Buchanan, 2020) This is also the reason why it is now banned for four-wheel vehicles
(although more often than not, the ban has not been respected and more than once lifted off) (The
bali sun, 2020). It is important to keep in mind that these are personal experiences from the bloggers.
There are also people who think the roads are good, or at least better than they expected beforehand,
an example of this is Adelina (Adelina, 2021) she thinks that the infrastructure is quite good in
comparison to what she expected and to the infrastructure in Bulgaria where she is originally from.
Another important aspect of accessibility are the facilities for disabled people, and people in a
wheelchair. Bali does have some places where there are high-end resorts which are accessible for
wheelchairs, also some travel agents are offering holidays for disables people, and even scuba diving
is possible. However, there are also a lot of places where it is difficult for wheelchairs to get around.
Still many roads in Bali, and in Canggu are unpaved, the beaches in Canggu are hard to reach, and
some restaurants are not wheelchair friendly. (Tripadvisor, 2016)
2.3 Current markets and pull factors of Bali and Canggu
As for the first half of 2020, the leading market for direct foreign tourist arrivals in Bali is Australia, with
222,360 arrivals out of the 1,050,000 arrivals total. China is the second largest market for Bali
(Statista, 2020). The number of arrivals in 2020 drastically dropped in comparison to previous years.
For example, the total number of arrivals in Bali was 6.280.000 in 2019. This is due to COVID-19 and
the travel and tourism restrictions taken related to this virus which put a pause on the tourism industry
in Bali and worldwide (Statista, 2021).
The characteristics of these tourists can be described as mostly male (57%) 25-44 year olds (64%).
Most of these visitors visited Bali for the first time and obtained information on Bali through the
internet. Visitors stayed for an average of 4-7 days. Being at the destination, tourists especially make
use of transportation modes in the form of rental cars or buses. The most often rented type of
accommodation by tourists are rentable hotel(room)s, villas, homestays, cottages and guesthouses
(Ni Ketut et al., 2020, 67-77).
The main reason for visiting Bali is for holiday purposes. Different types of ‘visitor groups’ can be
identified that travel to Bali for different activities. Nonetheless, these reasons can surely be mixed per
visitor. Some visitors are tourists who seek relaxation through spa and wellness and who are
interested in trends such as healthy lifestyle, as there are many luxurious resorts, yoga facilities and
healthy eateries. Bali is popular amongst travelers that are avid users of social media, like influencers,
who mention sharing their experiences on social media as another reason for visiting the island. Bali
is often referred to as ‘the island for hipsters’, people focussed on the latest trends such as health and
sustainability. (Oxford Languages, n.d.). Tourists visit Bali for being immersed into the Balinese culture
(e.g. temples, the friendly locals, local festivities and festivals and the local cuisine), as well as for the
pleasant climate and weather with its flora and fauna (e.g. beaches, caves, mountains, rice terraces,
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, waterfalls, etc.) there wanting to enjoy the Balinese landscape. Besides, Bali is also popular amongst
adventure seekers, as it is a good place for activities such as water sports, hiking and renting
scooters. Backpackers visiting the island motivate their visit by wanting to meet new people by going
out and participating in the nightlife (Kludzeweit et al., 2020, 23-40). It is often mentioned that the
overall prices in Bali for renting or buying products / services are low, so easily accessible for many
(Globetrooper, n.d.), (TripCanvas, 2019), (Altschuler, 2019) .
As for Canggu specifically, the following aspects are often described as aspects this area is known for
and the main drivers for tourists for planning a visit to his particular area: the Pura Tanah Lot temple
and the many good, affordable restaurants (e.g. restaurant Crate for breakfast) with menus for any
diet, primarily serving healthy food. The beach clubs and bars are seen as a pull factor of Canggu,
along with the beaches (e.g. Echo Beach). Visitors mention that the beaches at Canggu are not ideal
for swimming but great for surfing. Tourists also spend their time at one of the many fitness and yoga
classes provided at local gyms and go to local markets for shopping. Several rice fields are located in
Canggu and tourists usually visit these by renting a motor or scooter. Furthermore, as Canggu is close
to the international airport of Bali (Ngurah Rai) it is very accessible by cab or transfer, and it is
mentioned often that Canggu is busy and lively as there are some clubs and bars, but not as crowded
as nearsituated areas like Seminyak, Ubud and Kuta. It makes it a pleasant area for tourists not
seeking very crowded areas but more calmth and relaxation (Reisjunk, n.d.), (BackpackenInAzië.nl,
2020), (SaltInOurHair, n.d.). Canggu is highly attractive to surfers, yogis and foreign expats (mainly
working as freelancers in the marketing or tech industry). There are many coworking spaces
available; the living expenses are cheap and the relaxed, laid-back atmosphere of Canggu is found to
be great amongst expats to find ‘balance in their life’, according to Michael Craig, founder of the Dojo
Bali coworking space. He mentions there is a tight community of expats and friendly people which is
supported by weekly events and nightlife (Woolsey, 2017).
The Plog model of allocentricity and psychocentricity is used to determine and distinguish certain
types of tourists (their travel behavior and personality) in relation to the level of appeal of a certain
destination. Plog distinguished five categories according to time and number of tourists at a
destination (Stainton, 2020).
Figure 1: Plog model of allocentricity and psychocentricity (ResearchGate, n.d.)
It can be concluded that Bali does not attract just one type of tourist, as each different region or area
offers different characteristics which therefore attracts a different type of tourist. Thus, a destination for
Mid-centric tourists. According to Mila Gerber, a born and raised Balinese who made a drawing
typifying the different tourists in different areas, Seminyak is an area that is very Westernized and
attracts many and more high-class tourists staying in a resort (more Psychocentric), Ubud however is
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