Kintamani having a tough time economically
According to an article on BaliDiscovery, the local economy in Kintamani is having a tough time. The article says that since the 2002 Bali Bomb I, 22 hotels and restaurants have closed in Kintamani.
There are several factors that are responsible for the downturn, including the threat of terrorism, bird flu and continual news of natural disasters in Indonesia, ranging from earthquakes, to the tsunami to volcanic eruptions, and mudflows.
In my opinion the locals are partly to blame themselves. While the vast majority of the tourists to Kintamani come on day trips, never getting below the crater rim, some tourist do stay around longer, and are frequently abused and hassled by over aggressive touts.
Kintamani needs a marketing agency, to look at the whole area, and set up rules of engagement, help the locals interact with tourists.