Bali Governor Wayan Koster has announced plans to ban Airbnb-style rentals across the island, citing concerns over tax evasion and negative impacts on the hotel industry, according to the Jakarta Globe.
Speaking at the 15th Regional Meeting of the Indonesian Hotel and Restaurant Association (PHRI) in Denpasar on Dec. 3, Koster highlighted that approximately 2,000 unlicensed online lodgings, many operated by foreign nationals, are being marketed as accommodations without contributing to local taxes.
“These rentals undermine Bali’s locally generated revenue and do not fully support the local economy. We will enforce the rules without exception. This is a shared responsibility, not just the government’s,” he said.
Hotel occupancy at PHRI-affiliated properties currently hovers around 60%, significantly lower than expected given that Bali welcomed 6.3 million visitors in 2024. Koster added that regulating or banning Airbnb-style rentals is essential to protect the hotel sector and ensure tax compliance.
PHRI Chairman Hariyadi Sukamdani supported the move, noting that daily accommodations must be legally classified as hotels, similar to regulations in Singapore, where local residents help monitor illegal rentals.
Koster stated that his administration will review the proposal for the Airbnb ban before submitting it for formal approval.
This comes shortly after authorities halted construction of a glass lift at Kelingking Beach in November due to regulatory violations and public backlash, reflecting Bali’s stricter approach to unlicensed developments and tourism operations.
