DENPASAR, DEWATA.NEWS – Bali is considering a ban on accommodations listed through Airbnb Inc., marking the province’s latest effort to regulate a tourism sector that continues to surge to record levels. The proposal follows growing concerns that unregistered villas and guesthouses are eroding local tax revenue despite a sharp rise in foreign arrivals.
Governor I Wayan Koster told state news agency Antara that the rapid expansion of Airbnb-style rentals in recent years has reduced the government’s ability to collect hotel taxes used to fund public services. He noted that the proliferation of unlicensed properties has become increasingly difficult to control.
Bali, widely known as Indonesia’s island paradise, continues to grapple with the pressures of post-pandemic tourism growth, ranging from severe traffic congestion to overdevelopment and environmental strain. Airbnb has become a popular low-cost alternative to resort and hotel accommodations across the island, which is home to roughly four million residents.
In response, regional authorities have tightened tourism regulations, including the introduction of a new levy for international visitors and stronger enforcement against unregistered operators. Officials say these measures are intended to ensure tourism development aligns with environmental stewardship and tax compliance.
A ban would deal a significant blow to Airbnb’s international expansion, with Bali cited by the San Francisco-based company as a key market for new growth. In recent years, bookings from Asia and Latin America have contributed most to the platform’s global momentum as North American demand moderates.
To attract more international users, Airbnb began supporting local payment methods in about two dozen countries by late 2024. Indonesia, Brazil, and South Korea were listed as examples of markets benefiting from these new payment options in the company’s fourth-quarter 2024 report.
The Bali governor’s office has not issued further comments, and Airbnb has yet to respond to requests for comment outside normal business hours.
More than 2,000 hotels and villas currently operate without proper licenses and are set to face sanctions, according to the governor. An estimated 16,000 accommodation units are marketed online, competing with 378 registered members of the Indonesian Hotel and Restaurant Association (PHRI) Bali.