The rapid and to some extent uncontrolled tourism expansion in Bali is likely to have major impacts on the island and its residents. Tourism development in Bali is a top priority for economic growth and is the main economic sector on the island. Sustainable tourism has become an increasingly important and recognized topic due to tourism’s inherent nature to generate both positive and negative economic, socio-cultural and environmental impacts. Sustainable tourism development is about striking a balance between meeting the needs of local communities, satisfying tourist demand and protecting the natural environment. Residents of host communities are seen as a vital component of the tourism experience as they are the first to interact with tourists. The residents' perceptions are essential to assessing the feasibility of all types of development initiatives, as well as their perceptions are of great importance linked to their personal well-being. Social exchange theory (SET) and triple bottom line (TBL) were used as theoretical frameworks to fulfil the purpose of this study. The study aimed to create an understanding of how residents in Bali experienced the island’s tourism development, and whether and how it differed between residents of the two different destinations: Ubud and Canggu. By examining Bali residents' perceptions of tourism on the island, a small contribution can be made to tourism research from a resident-centric perspective. In turn, this can contribute to subjective indications concerning tourism that are likely to be important in a developing island context. The results showed that the perceived economic benefits outweighed both the socio-cultural, and environmental perceived costs. This result can be interpreted as being due to the residents' strong dependency on tourism, where their vulnerability should be taken into account in sustainable tourism development.