Bali Governor Wayan Koster is taking a firm stance against the growing number of Airbnb-style accommodations and other online lodging services that continue to proliferate on the island.
Koster argues that these digital accommodation platforms do not contribute to regional revenue and therefore must be regulated immediately.
“It will be reviewed, we will propose that it be stopped,” Koster said in Denpasar on Wednesday (3/12).
Illegal Accommodations And Bali’s Tourism Imbalance
Koster stated that Bali’s current tourism landscape shows a significant imbalance: tourist arrivals continue to rise, yet the occupancy rates of licensed hotels remain stagnant.
He highlighted the presence of more than 2,000 illegal hotels and villas operating without permits and without contributing to taxes.
According to CNA, “Not to mention the illegal ones, not to mention the naughty ones, we will crack down on all of them, no mercy.” he warned. The PDI-P politician urged all tourism industry players to work together in maintaining Bali’s tourism ecosystem instead of relying solely on the government.
In addition to Airbnb operations, Koster also criticized the practice of renting private homes and villas to foreigners at extremely low prices because their owners do not pay taxes. This situation, he said, harms licensed hotels that comply with regulations.
“There are houses and private villas rented by foreigners at very cheap prices because they don’t pay taxes. It’s a pity that licensed hotels that pay taxes have to compete with illegal lodgings. The data is already available. A proposal will be submitted to stop this, and action will be taken starting in 2026.” he stated.
Not Linear with Local Revenue
Chairman of Bali Chapter of Indonesian Hotels and Restaurants Association, Tjok Oka Artha Ardana Sukawati, revealed that only 378 official accommodation units are registered with the organization. This number is far below the estimated 16,000 units operating through online platforms.
According to Oka, many Airbnb-type businesses are run by foreign nationals who lease local residents’ homes and then sublet them daily through digital platforms.
“This is very detrimental to the upward trend in tourist arrivals, which is not linear with local revenue and occupancy rates.” he said.
Koster reaffirmed that the Bali provincial government plans to prohibit Airbnb from operating on the island, as the platform does not contribute to local revenue. The provincial government is currently conducting studies to move forward with the ban.
“It will be reviewed, we will propose that it (Airbnb accommodation) be stopped.” Koster said after attending the 15th Regional Conference of the Indonesian Hotel and Restaurant Association (PHRI) Bali in Denpasar, as quoted by CNN Indonesia (5/12).
In his remarks, Koster mentioned that more than 2,000 unlicensed hotels and villas in Bali must be dealt with.
“The number of tourists has increased, but the occupancy rate has not risen in line with the number of tourists coming to Bali. This also hurts regional income. It does not fully support Bali’s local economy, which is what is happening now.” he said.
Not to mention illegal activities and mischief we will crack down on all of them without mercy. We must all work together. So I invite everyone in Bali to work together. This is not only the responsibility of the government, but of all of us. he added.
Koster also confirmed that private houses and villas rented cheaply to foreigners without paying taxes will be targeted for enforcement beginning next year.
“There are houses and private villas rented by foreigners at very cheap prices. Because they don’t pay taxes, it’s a pity for licensed hotels that pay taxes to have to compete with (illegal) lodgings. The data is already available. A proposal will be submitted to stop this, and action will be taken starting in 2026.” he concluded.
Sources : CNA, CNBC Indonesia