The high price of turning a fishing village into a 'New Bali'

Countries & Cities · Published 12 October 2026 Swipe more like this →

In short: Labuan Bajo is rapidly transforming from a quiet fishing hub into a global luxury destination. But as Indonesia builds 'super-priority' resorts to rival Bali, a complex tension is emerging between massive infrastructure growth, environmental strain, and the marginalization of the indigenous people who have inhabited the islands for a millennium.

Located at the western tip of Flores Island, Labuan Bajo serves as the gateway to the Komodo National Park, a World Heritage site famous for its dragons. The Indonesian government has designated the area a 'super-priority' tourism destination, aiming to create 'ten new Balis' to alleviate overtourism in Bali. This shift has triggered a construction boom: the built-up surface grew by 246 hectares between 2017 and 2023, with another 267 hectares expected by 2029. While the town is small enough to traverse on foot in 15 minutes, it is now the anchor for high-end accommodations, including five-star hotels and luxury resorts like Ayana Komodo.

However, this rapid expansion faces significant hurdles. The region is prone to tsunamis, earthquakes, and landslides, which historically impact tourism more than man-made threats. Environmentally, the area faces a mounting waste crisis, potentially compiling 13 tons of trash daily, with 35 to 40 percent being saleable inorganic plastic. Furthermore, the creation of the national park has criminalized traditional fishing practices that existed for centuries, while modern destructive methods like explosives continue to be used in some areas as of 2024.

The most profound tension lies in the socio-economic impact. Critics argue that the tourism model prioritizes outsiders over locals, leading to 'financial leakage' where high-profit businesses are owned by non-residents. While jobs are created, many lack social security or structured training. For more than a millennium, the Ata Modo indigenous group has inhabited Komodo Island, yet their current situation remains the most alarming. Despite their history, they are sometimes labeled 'wild settlers' in the push for privatization, raising urgent questions about the balance between animal rights, human rights, and commercial interests.

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