Example of how tourism can reduce the development gap

Bali is an island province in Indonesia (an NEE) where international tourism has developed since the 1960s. Tourism provides 60 per cent of Bali’s income, with many new jobs created. Life expectancy in Bali is higher than average for Indonesia; Bali ranks fifth of 38 provinces for human development. Tourism has some negative impacts, including eroding local culture, pollution and reduced water supplies. The government plans to develop five new destinations elsewhere to address concerns about ‘overtourism’ in Bali.