ABSTRACT
This chapter outlines some general regional approaches dealing with employment shortages and demographic pressure in rural areas. It summarizes the context of rising rural-urban linkages in the Yogyakarta Special Region (D.I.Y.), and an agenda for policy recommendations. Tourism in the D.I.Y. has shown continued growth in recent years. Considering its possible potentials but also side-effects for regional development tourism should be definitely addressed by policymakers. A brief examination of the more than two-decades-long Balinese experience in planned tourism development might prove enlightening in the abovementioned respect. A plan for tourism development in Bali was initiated in the early 1970s. It stated that 'tourists would be contained in designated resort areas and certain excursion routes', while the construction of luxury hotels was scheduled near certain coastal beaches. Several general conclusions can be cautiously drawn from the Balinese experience in tourism for the D.I.Y. Luxury tourism has a relatively weak impact upon the domestic economy, and probably none upon the rural economy.
