Redefining Tourism in East Indonesia: From Extractive Growth to Regenerative Economies

Diemas Sukma Hawkins

Chairman, Nusra Economic Council

Tourism in East Indonesia — stretching across West and East Nusa Tenggara — has long been marketed as the “next Bali.” With world-class diving in Komodo, pristine beaches in Sumba, and the cultural depth of Lombok, the region has undeniable appeal. Yet, the prevailing model of tourism development has mirrored Bali’s challenges: over-reliance on mass tourism, under-investment in communities, and limited safeguards for fragile ecosystems.

As Indonesia positions itself for sustainable development under its national and international commitments, East Indonesia has the opportunity to chart a different course. Instead of extractive growth that prioritizes short-term profits, the region can embrace regenerative tourism — a model that restores ecosystems, strengthens local economies, and celebrates cultural heritage.

The Current Landscape

Tourism contributes significantly to the GDP of West and East Nusa Tenggara. According to Indonesia’s Ministry of Tourism and Creative Economy, Lombok and Flores have emerged as priority destinations under the 10 New Balis initiative. Visitor numbers have grown steadily, supported by new infrastructure such as Lombok International Airport, Labuan Bajo Marina, and regional road improvements.

However, the challenges are stark:

• Environmental Pressure: Coral reef degradation, water scarcity, and waste management issues threaten the very landscapes that attract visitors.

• Uneven Benefits: While international investors and large operators thrive, many local communities remain confined to low-wage hospitality roles.

• Cultural Erosion: Traditional practices and heritage sites risk commodification rather than preservation.

Towards Regenerative Tourism

Regenerative tourism goes beyond “sustainability.” Instead of merely minimizing harm, it seeks to actively restore and enhance the environments and cultures it touches. For East Indonesia, this approach means embedding ecological stewardship, cultural pride, and community ownership at the heart of the tourism economy.

Key pathways include:

1. Community-Based Enterprises
   Local cooperatives managing homestays, guiding services, and cultural performances can capture more value for communities. In Sumba, for example, weaving cooperatives linked to eco-lodges provide both cultural preservation and income diversification.

2. Eco-Infrastructure Investments
   Renewable energy solutions for resorts, waste-to-energy facilities in tourism hubs, and water recycling systems can reduce environmental footprints while creating green jobs.

3. Heritage-Driven Experiences
   Tourism products rooted in Sasak, Manggarai, and Sumbanese traditions — from crafts to rituals — ensure that heritage is celebrated, not diluted. This strengthens cultural pride while attracting visitors seeking authenticity.

4. Policy and Certification Frameworks
   Local governments can incentivize sustainable operators through tax breaks, land-use regulations, and eco-certification programs. This creates a level playing field for responsible investors.

Case Studies in Progress

• Labuan Bajo, Flores: The transition to becoming a premium eco-destination has begun, with investments in waste management and marine protected areas.

• Mandalika, Lombok: The super-priority tourism zone faces scrutiny for its environmental and social impacts, but new models of inclusive stakeholder engagement could turn it into a testbed for regenerative practices.

• Sumba’s Eco-Lodges: Resorts like Nihiwatu (now Nihi Sumba) have demonstrated that luxury tourism can coexist with philanthropy, funding schools and water projects for local villages.

The Role of the Nusra Economic Council

The NEC can play a pivotal role in steering this transition by:

• Convening investors, communities, and government to design regenerative models.

• Publishing metrics and benchmarks for eco-tourism performance.

• Mobilizing blended finance through the Nusra Venture Fund for community-based enterprises.

• Integrating regenerative tourism into the East Indonesia Economic Corridor Development Plan.

Conclusion

Tourism in East Indonesia is at a crossroads. The choice is between replicating Bali’s overburdened trajectory or becoming a global model for regenerative economies. By centering communities, protecting ecosystems, and celebrating culture, the Lesser Sunda Islands can redefine what tourism means in the 21st century — not just for Indonesia, but for the world.

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