Bali Governor Announces Plans To Ban Airbnb Rentals

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Bali governor Wayan Koster, has announced plans to ban the operation of Airbnb rentals across the island

Koster said the decision comes as unlicensed online lodgings do not contribute to tax revenue and undermine the hotel industry, reported the Jakarta Globe.

He made the remarks at the 15th Regional Meeting of the Indonesian Hotel and Restaurant Association (PHRI) in Denpasar on Wednesday, 3 December.

According to Koster, as many as 2,000 Airbnb-style lodgings are unlicensed and operated by foreign nationals who lease local homes and re-market them as accommodations on digital platforms

He added that these rentals do not contribute to Bali's locally generated revenue (PAD) and taxes, particularly hotel and restaurant levies.

Hotel occupancy at PHRI-affiliated properties has also been disproportionate to the number of tourists visiting the island, he said.

The current hotel occupancy rate is estimated to be around 60%, far below expectations when considering Bali received 6.3 million visitors in 2024.

"Airbnb does not fully support Bali's local economy. Many are illegal and problematic, we will enforce the rules without exception. This is not only the government's responsibility but a shared one."

PHRI Chairman Hariyadi Sukamdani said Airbnb-style lodgings must be regulated to ensure legal clarity

"Daily accommodations must be categorised as hotels," he said, adding that this is a similar approach to Singapore, where regulations are enforced, and local residents will report if a property is being rented out illegally.

Koster said his administration would review the banning proposal and submit it.

In November, Balinese authorities also halted the construction of a glass lift at Kelingking Beach, after public backlash and the discovery of multiple regulatory violations.