Damai Lovina Villas Case 1. Tourism to Bali brings thousands of visitors to the area and is the home of over 1,000 hotels. These hotels can be wasteful and consume a large amount of Bali’s environmental resources such as water, energy and waste. Hotels require 260 liters of water per second, which is equal to the amount consumed by 250,000 villagers. Due to the over consumption of energy by hotels, Bali experienced a shortage in power and blackouts became very common. Solid waste was also a problem in Bali. A single hotel generated 100 tons of waste annually, most of which was deposited into landfills. 2. In Bali government regulations were insufficient since existing standards were not enforced and growth often was promoted to the detriment of the environment. Dredging projects rarely involved environmental impact studies or guaranteed protection of natural areas as required by law. Also there were common accusations of corruption in government agencies tasked with protecting the Island’s environmental resources. Due to major government deficiency in regulations for the environment, the lack of budgeting resources caused many citizens to loose faith in its ability or intent to protect Bali’s environment. 3. Firms do not need to wait for government to take actions o address Bali’s social and environmental issues. Bali had a lot of environmental issues that were caused by the government. According to the article “The Indonesian government was the largest holder of the country’s oil reserves and encouraged additional oil consumption and petrochemical development.” The article also says “The government focus on energy development and resource extraction, close relationship with developers, and lack of budgetary resources caused many citizens to lose faith in its ability or intent to protect Bali’s environment.” This shows that firms needed to take action