The Bali Provincial Government has urged Airbnb to comply with regulations in its role as a bridge between villa accommodations and tourism services for tourists in Bali.
Bali Governor Wayan Koster explained that promoting villas and tourism services in Bali must be carried out in accordance with the appropriate licensing requirements for tourism businesses, whilst ensuring that all accommodations comply with tax regulations. Koster also invited Airbnb to collaborate with the Bali Provincial Government’s digital platform, “Love Bali”, to facilitate the payment of Foreign Tourist Levies (Pungutan bagi Wisatawan Asing or PWA) and other fees for mutual benefit.
Moreover, Koster asserted that he would take legal action against accommodations that fail to comply with tax obligations and complete the necessary permits, despite having operated in Bali for a long time.
“If they are not disciplined, I hope that villa and tourism service businesses will be removed from Airbnb’s digital platform,” Koster explained, as quoted from the press on Thursday, the 12th of February.
Furthermore, Koster underscored that although he is open to anyone wishing to do business in Bali, all parties must follow government regulations and share responsibility for maintaining the quality of Bali’s tourism sector.
“If the quality of Bali’s tourism is solely the responsibility of the Provincial Government, Regency/City Government, and the Balinese people, it would be unfair if those who profit from tourism do nothing for Bali. If Bali doesn’t receive justice, nature will take its own course [instead] to ensure fair governance in Bali,” the Governor continued.
The current trend, including the proliferation of villas and houses being used as tourist accommodations without paying taxes or obtaining permits, is causing losses to Bali. Koster reiterated that, ultimately, discipline within the tourism industry aims to protect Bali from damage.
“We are working hard to organise Bali’s tourism sector in order to ensure its sustainability. Therefore, all parties must participate in the regulatory framework implemented by the Bali Provincial Government — before any damage ensues,” he added.
Meanwhile, Shanta Arul, Public Policy Lead for Airbnb Southeast Asia (SEA), expressed the digital platform’s commitment to complying with all Balinese government regulations, as well as its dedication to encouraging tax compliance. In addition, Airbnb is prepared to share information regarding government regulations and compliance requirements with its villa and accommodation partners.
“Airbnb takes this licensing process very seriously, and we are ready to collaborate with the government,” said Arul.