Bali plans to halt Airbnb-style accommodations beginning in 2026, citing lost tax revenue and unfair competition from thousands of unlicensed villas and rentals as the reason.
Bali Governor Wayan Koster has announced plans to put an end to the operation of Airbnb-style accommodation on the island. According to Koster, such establishments do not contribute to Bali’s regional revenue (Pendapatan Asli Daerah or PAD).
“We will review this and propose that it [Airbnb-style accommodation] be halted,” Koster said on the sidelines of the 15th Regional Conference of the Indonesian Hotel and Restaurant Association (Perhimpunan Hotel dan Restoran Indonesia or PHRI) in Denpasar on Wednesday, the 3rd of December.
The Governor explained that the presence of digitally marketed accommodations, such as Airbnb, is affecting regional income, particularly hotel and restaurant taxes. Although tourist arrivals continue to rise, this increase is not reflected in the occupancy rates of Bali’s hotels, particularly those affiliated with PHRI Bali.
The Governor, therefore, urged tourism stakeholders to work together with the government to regulate accommodation providers that do not contribute to regional revenue.
“Airbnb does not fully support Bali’s local economy; that is what we are currently witnessing. Not to mention those operating illegally and irresponsibly. We will enforce regulations against all of them, with no exceptions. We must work together. This is not only the government’s responsibility but everyone’s,” he underscored.
In addition to Airbnb, Koster highlighted the practice of renting out private houses and villas to foreigners at extremely low prices, often because the owners avoid paying taxes. This situation, he said, harms legal, properly regulated hotels. Koster also noted that there are more than 2,000 unlicensed hotels and villas in Bali that need tighter regulation.
“It is deeply unfair to licensed hotels that do pay taxes to have to compete with illegal accommodation. We already have the data. We will submit a proposal for a ban, and enforcement will begin in 2026,” he continued.
Meanwhile, Tjok Oka Artha Ardana Sukawati, Chair of PHRI Bali, revealed that the organisation currently has 378 registered accommodation units. This figure is vastly disproportionate to the estimated 16,000 accommodation units marketed online. Regarding Airbnb practices, in particular, he added that such operations are often run by foreigners who rent houses and then re-let them as daily rentals through digital platforms.
“This is very detrimental, as the rising trend in tourist arrivals is not aligned with regional revenue or occupancy rates,” Sukawati observed as well.