Bali’s tourism industry is stepping up efforts to improve regulatory compliance as authorities seek to create a more orderly and sustainable business environment.
One indication of this trend is the growing number of villa owners moving to legalize their operations. The policy to halt the promotion of unlicensed tourism accommodation through Online Travel Agents (OTAs) has prompted thousands of operators to apply for permits.
Bali Governor Wayan Koster said 5,000 villa businesses submitted licensing applications throughout 2025 and 2026.
“Throughout 2025 and 2026, 5,000 villa businesses submitted licensing applications,” said Governor Koster during a plenary session of the Bali Regional House of Representatives on Sept. 21, 2026.
Positive Impact on Occupancy Rates
The figure suggests that stricter oversight is beginning to reshape business practices within Bali’s accommodation sector, encouraging operators to prioritize legal compliance and formal licensing requirements.
According to Koster, the policy has also changed tourist accommodation patterns. With OTAs no longer marketing unlicensed accommodation, travelers booking through these platforms are being directed to properties that have obtained the necessary permits.
“Because OTAs no longer market unlicensed properties, tourists who book through these travel platforms are no longer using unlicensed accommodation and are no longer staying at unlicensed properties,” Koster said.
Koster said the policy has also had a positive impact on occupancy rates at licensed hotels, which he said have been recording occupancy levels of around 80% to 90% on a daily basis.
Beyond occupancy, revenue generated by hotels and restaurants has also increased, according to Koster. The improvement, he added, has contributed to higher government revenue.
Earlier, Koster met with several OTA operators to discuss efforts to promote a high-quality, orderly, and sustainable tourism industry in Bali. The meeting was held at Jayasabha, the Bali Governor’s official residence, on May 8, 2026.
During the meeting, Koster conveyed two key requests to OTA operators.
First, OTAs were asked to list and market only legally operating tourism businesses that comply with government regulations. The policy aims to ensure that accommodation offered to tourists has met all licensing requirements.
Second, OTAs were expected to assist the government in collecting the Bali Tourism Levy, which is imposed on foreign visitors.
By steering digital accommodation marketing toward licensed operators, the government hopes to create a more transparent, accountable, and sustainable tourism ecosystem in Bali.
Sources : BaliNews, BaliNetizen