In recent years, the ‘Small Moscow’ area in Bali has been gaining attention, as it is home to many wealthy Russians who moved there to make substantial savings on their travel and accommodation costs. This transformation has come with both positives and negatives, with some locals arguing that the migration of Russians has a significant and lasting impact on the culture and economy of this tourist paradise.
What Is Small Moscow?
Small Moscow is a collection of towns situated in Bali, on the south-east coast of the Indonesian island. It is primarily home to a large Russian expat community and its name is derived from the extraordinary number of Russian people living in the area. The region includes towns such as Uluwatu, Kuta, Seminyak, and Sanur and it is becoming increasingly popular with Russian tourists looking for a warm climate, low-cost living, and sunny beaches that remind them of home.
People Move to Small Moscow for Economic Reasons
It is well known that the majority of people who move to Small Moscow are attracted by the low-cost of living and the favourable exchange rate. For many Russians, it is an ideal place to live and work, as the cost of living is significantly lower than in Moscow and other parts of Russia.
The average monthly rent for a two-bedroom apartment in Moscow is about 70,000 rubles per month ($945) whereas in Small Moscow, the cost is about 35,000 rubles per month. The exchange rate is also in the Russians’ favor, with 1 euro equaling 79 rubles in Moscow and 59 rubles in Bali. Additionally, the cost of food and other basic necessities are roughly 50% lower than in Moscow, something that is extremely attractive for living expenses.
Impact on Local Culture and Economy of Bali
The influx of Russian nationals to Small Moscow has had a significant impact on the local culture and economy. For example, the number of restaurants serving Russian cuisine has grown exponentially over the last few years, with many of the restaurants being manned by Russians or Russian-speaking natives. In addition, some Russians have opened their own businesses in the region and there has been increased demand for Russian-made products and services, such as construction and plumbing.
This development has created a significant economic boost for Bali, as increased economic activity has resulted in a rise in employment and wages, in addition to the influx of Russian capital. This has also benefited local businesses, as the increase in spending power of the locals has enabled them to upgrade or expand their services or products.
The Disadvantages of Small Moscow
While there have been many positives to come from the ‘Small Moscow’ area, there are also some potential disadvantages. For example, the influx of wealthy Russians has caused a surge in property prices and has led to a decrease in local access to affordable housing, as many property owners have opted to rent their homes to Russian tourists as opposed to locals.
Additionally, locals fear that the influx of Russian culture may threaten the traditional Balinese culture and that the potential conflicts between the two cultures could cause disruption, and lead to further difficulties for the local population.
The ‘Small Moscow’ area of Bali is evidence of the success that can come from foreign investment and the creation of new industries. So far, the economic benefits have been clear, with increased employment and wages, in addition to a surge in the demand for Russian-made goods and services. However, it is important to recognize that there are also potential drawbacks to such a significant influx of foreigners, in particular the impact it has had on the local housing market and the potential conflict of culture between the locals and the Russians. All of this highlights the need to establish adequate regulations and protocols to ensure that the impacts of such an influx are monitored and managed carefully.
