Leaders in Bali are speaking out about the impact that illegally operating tourist accommodation is having on the island.
From the potential dangers to tourists to the impact on the environment and the lasting effects on the local economy and communities, one Bali-based academic says enough is enough.
Economics Professor, Prof. Dr. Putu Anom, has spoken to reporters about how an apparent rise in the number of unlicensed and illegal accommodation providers on the island is impacting the economy and the community.
Illegally operating accommodation, referred to in Indonesian as ‘bodong’ is having an ‘enormous’ impact on the Balinese economy, resulting in trillions of rupiah of losses.
Prof Anom told reporters how when illegal tourism accommodation providers are left unchecked, not only does the government miss out on vital tax revenue, but official, linseed and legally operating accommodation providers lose out on bookings. All legally operating hotels, hostels, B&Bs, guesthouses, villas, resorts, restaurants, cafes, and eateries in Bali must pay their Hotel and Restaurant Tax, referred to as the PHR.
Prof Anom told reporters that accommodation providers who do not have formal tourism permits are slipping through the next, and are not paying their PHR contributions. He shared “They are only subject to land and building tax, not PHR, because they are not officially registered as tourism accommodation, so they cannot be taxed.”
As a lecturing professor at Udayana University in Denpasar, Anom’s advice to the Bali Provincial Government is to take strict action against unlicensed tourist accommodation and to make it easier for tourists to identify unlicensed accommodation providers.
It is not only Prof. Anom who wants to see improvements to how tourism accommodation is managed in Bali. Earlier this month the Bali Villa Rental Management Association was formally inaugurated by the Deputy Governor of Bali, Nyoman Giri Prasta.
The association is on a mission to help improve the management of tourism villas in Bali, in turn improving the quality, comfort, and safety of tourist stays and supporting local business owners across the province.
The Bali Villa Rental Management Association already has 70 members who manage over 1,000 private tourist rental properties across Bali, Nusa Penida, Nusa Lembongan, and Nusa Ceningan.
In a press interview the Chairman of the Bali Villa Rental Management Association, Kadek Adyana, shared “We must be strong in Bali, how to make Balinese people and culture able to become the main pillars to strengthen tourism, do not let incompetent and illegal outsiders operate their business in Bali without permission.”
There are concerns that many of the accommodation businesses that are operating illegally in Bali are owned and operated by foreigners. There is a strong focus in Bali right now, across the business world, to promote and protect the rights and opportunities of the Balinese people. It is an issue that the Governor of Bali, Wayan Koster, has also been speaking out this week.
Governor Koster told reporters that he will be ordering more strict law enforcement on both foreigners and non-Balinese Indonesian nationals who try to operate outside of the law in the province.
In statements that touched on many of the most pressing issues the island is facing right now, Governor Koster shared “I will firmly and firmly stop various violations of villas without permits, vehicles operating in Bali transporting tourists with plates outside Bali must use Bali Plates or DK, drivers must have Indonesian ID cards with Balinese addresses.”
He added ”As a regional head, it is my legal obligation to protect the Balinese people. Likewise, we will discipline naughty tourists on the road who do not wear helmets, only wear t-shirts, violate traffic signs, and fight the police, this is not right, I will immediately deport them If those who violate the law are processed legally so that everything is orderly. I will do it firmly starting next week.”
Remove All Ads & Unlock All Articles… Sign up for The Bali Sun Premium
Plan Your Bali Holiday:
Book The Best English Speaking Drivers For Airport Transfers & Tours
Choose From Thousands of Bali Hotels, Resorts, and Hostels with Free Cancellation On Most Properties
Book Cheap Flights To Bali
Don’t Forget Travel Insurance That Covers Medical Expenses In Bali
For the latest Bali News & Debate Join our Facebook Community
SUBSCRIBE TO NEW POSTS
Enter your email address to subscribe to The Bali Sun’s latest breaking news, straight to your inbox.
Discover more from The Bali Sun
Subscribe to get the latest posts sent to your email.
J West
Friday 28th of March 2025
Solution...no non Indonesian stays on Bali more than 14 days .. barred from return for more than 6 months per year. Bali returns to being the bucolic tourist hub of bygone days , like it was until mass tourism crapped all over everything...make it so.
Shorty
Thursday 27th of March 2025
Just more words.... The learned Professor and Koster are just parroting what everyone knows.
The cause (and the fix) is simple. Make the many relevant government and regulatory agencies get off their bums and do their jobs. They have the legal powers of investigation and prosecution.
The villa association is a joke. It has no legal basis to pursue breaches. To start with membership is voluntary and any codes of behaviour only apply to members. Don't like a ruling? Up you, I'm resigning.
Steve bm
Wednesday 26th of March 2025
Yea nows the time omg they are worried they have been sleep while filling the pockets for decades now have to act.
Aldo voulin
Wednesday 26th of March 2025
How can I report an illegal foreigner renting villa in Bali ?
Exp
Saturday 29th of March 2025
@Aldo voulin, If there is will there is a way
Harry
Tuesday 25th of March 2025
Balinese property owners dont even pay legal 10% tax on yearly rentals. They refuse the money being deducted.
Villa rentals also bring in higher paying luxury tourists than hotels
Just need ensure balinese and non balinese pay there taxes.
So money can be spent cleaning up the environment and providing free trash collection to everyone in bali.
Complaining about loosing tax money, whilsts it not spent correctly anyway?
Randy
Wednesday 26th of March 2025
@Harry, Are you referring to the Indonesian villa owners?? Let me remind you that Indonesians have to file income tax each year and the dead line is always on March 31st. There are some unscrupulous foreigners who do NOT pay tax on earnings while running a business in Indonesia. If the they own a P.T then they should file and pay tax on earnings in Indonesia with a tax ID on file. There are loopholes that they want to avoid paying tax and send their earnings abroad.
Any Indonesians who has a tax ID and attached to the National ID will be chased by the Tax office to remind them to file or face the music. If they comply each year by the dead line then it’s all good.
I don’t know what planet you are from but if you think they are all biased towards foreigners then they all should look in the mirror themselves first. And those foreign retirees in Bali with a visa and KITAS or KITAP and taking advantage of the BPJS national health care to buy medication at a lower cost than they would normally get in their own country of origin. So yeah no room to talk there.