Case uitwerking
In depth analysis of current developments in Canggu, Bali (TDTAT)
In this documents it is described clearly and in detail what is currently happening in Canggu. Drivers of change and business developments are described.
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appeal to that target market specifically. Increased migration will also affect the destination as moreand more people wish to move to Bali, Canggu getting more expats living there.
- Environmental:
Environmental changes and challenges will influence Canggu as a destination. Global warming and
water shortage will especially influence Canggu, pre-Covid the destination has already been
struggling with water inequity which causes social conflicts as well with the rice field farmers. A more
sustainable water management especially for all the villas and hotels has to be brought in place in
order to ensure sufficient water supply in the future in Bali. More sustainable management of plastic
waste also is crucial in the further development of Canggu as a sustainable destination in order to
successfully overcome the threats of plastic pollution damaging the environment.
- Socio-cultural:
Health has never been as important as nowadays. People wish to eat healthier and exercise more.
Leading a life of wellness is the goal for many, and we can see it in the popularity that certain activities
have had in the past years up until now, such as yoga, meditation or the vegan lifestyle. Mental health
is in fact not to be considered different from the physical one, as both hold the same level of
importance. This is due to an excess stress caused by various factors that today’s world
encompasses, whether it is caused by the school system or the working environment, bringing people
to having what is known to be called “burnout”. All of these aspects are interesting for the supply of
Canggu. On one hand, restaurants are impacted; the food and beverages they offer will be focussed
on the vegan cuisine and the healthy way. Furthermore, sustainability has become more important,
even more during the pandemic when a lot of people started questioning unsustainable practices in
every aspect regarding wasteful usage of resources. Yoga retreats in Canggu will be especially
attractive because of their wellness offering attached to it. Tourist businesses in Canggu can use this
trait to its advantage in a more health-conscious world.
- Technological:
One of the most important drivers of change in today’s world is surely related to technology.
Especially in Canggu, which is known to be a hub for digital nomads, this has taken more and more
importance. For example, it is easy to find free wifi access at coworking spaces or hotels and bars.
This is also supported by the trend of working remotely thanks to digitalisation. Moreover, social
media have a huge influence: most of the businesses nowadays promote themselves online,
attracting more and more visitors from all over the world. Canggu is very well known thanks to the
many influencers and tourists posting on Instagram.
ICT (information & communication technology) is still not fully developed in Canggu, but it will
probably be, given the importance it has, especially in tourism.
- Economic:
Nowaday, travelling is relatively easy and affordable for many people, especially in developed
countries. Thanks to technologies, wealthier jobs and lifestyles, people are able to go anywhere in the
world and to experience other cultures and realities. In many countries now, it is a right to have
vacation days and even to be paid a little extra to go on holiday. This allows people to enjoy their time
off and visit other countries.
- Political:
Also thanks to globalization, people’s mobility across borders has become easier and more dynamic.
Until 2015, according to CNBC (2018), only 15 countries could access Indonesia without a visa. In
2016, the indonesian government decided to extend the visa-free policy to 169 countries, a political
choice aimed at attracting more foreign visitors by making it easier to enter the country (Deloitte Tax
Solutions, 2016).
4. Impacts of tourism in Canggu
“What challenges/impacts of tourism do local businesses and residents face in Canggu?”
4.1 Impacts
- Increased taxation and cost of living→ Gentrification
Tourism developments in Canggu have been fast and uncontrolled for years. New businesses that
keep popping up (mostly from foreign investors) and the constant rise of tourists, made property
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