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Tourism has been known as one of the world’s fastest growing industries and has been used as a vehicle for indigenous people to engage in economic development opportunities within their local communities. The concept of sustainable tourism has brought greater awareness towards maintaining the economic and social advantages of tourism development whilst ensuing the industry is both socio-cultural and environmentally sustainable. A central component to the definition of sustainable tourism is the empowerment of indigenous people to take advantage of the benefits of the tourism industry. This paper will demonstrate that in certain instances there is conflict between indigenous peoples culture particularly communal ownership of land and the tourism industry. This research uses comparative analysis between Bali, Indonesia and Australia to analyse the social and legal impediments, which affect the potential of local indigenous people to contribute in sustainable tourism.

Indigenous People, Economic Development and Sustainable Tourism: A Comparative Analysis between Bali, Indonesia and Australia