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Bali Tourism Leaders Question Whether Island Really Needs New Hotels 

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Tourism leaders in Bali are calling on the provincial and central governments to assess how building and development permits are granted to tourism businesses on the island.

The calls come as many Bali lovers feel that the current rate of tourism infrastructural development in Bali is unsustainable and on a fast track to disaster. 

HOtel Guesthouse in Bali With Swimming Pool

Leaders from the Indonesian Hotel and Restaurant Association (PHRI) have spoken to reporters about how they feel the way in which building permits are granted to developers needs to change.

They have voiced fears that the government is selling permits to build hotels rather than granting permits and licenses based on what is best for the province. 


Then&Now: Bali destroyed by tourism. Over the last few decades, the resort island of Bali in Indonesia has seen massive development, mainly aimed at it's huge international tourist market. But not all of that was good for the island. Subscribe to my channel on YouTube! ▶️ Music alex-productions-wonders by | Music promoted by Creative Commons CC BY 3.0 ▶️ Acknowledgements Pictures copyright Maxar/Google ▶️ Tags Bali, Indonesia, resort island, Ngurah Rai, Ngurah Rai airport, Pandawa Beach, Pantai Pandawa, Beachwalk mall Kuta, Ubud area, Ulun Danu Bratan temple, Pura Ulun Danu Bratan, pura Danau Bratan, Mount Agung, Mount Agung volcano, Gunung Agung, Pulau Serangan, Serangan island, Canggu area

♬ original sound – Johan's Travel

The Executive Director of the Indonesian Hotel and Restaurant Association (PHRI) Bali Province, IB Purwa Sidemen, told reporters, “The question is, why are there still hotels being built? Because there are no definite figures that allow them to build them. So there are no figures that show how many hotels Bali needs.” 

He continued, “So, maybe that’s what we and several fellow academics on campus are paying attention to: hotel construction permits really look like they’re on sale…. That’s in line with our voice in the association. However, the name sale means free sale. Maybe the government doesn’t like it when it’s called a sale.”

“However, the government depends on how the leader is. For example, Badung has gone overboard with the number of accommodations but doesn’t want to limit permits for development because PAD [tax revenue] will decrease.”

@padesignstudio Exploring abandoned hotel in Bali PART 2 #abandonedhotel #abandonedhotels #abandonedplace #balihotel #balitravelguide #travelingbali #exploringabandonedplaces ♬ Creepy and simple horror background music(1070744) – howlingindicator

Sideman said that with all this development happening all over Bali, but especially in Badung Regency, home to resorts like Canggu, Uluwatu, Seminyak, Legian, and Kuta, it is increasing difficult to ensure that tourism on the island is of a higher quality as can be. 

Sideman added, “We who are involved in the world of tourism, of course, talk about quality tourism. So now it is difficult to make that happen. Even though the COVID-19 moment filters the number of tourists, improves accommodation in Bali, and sells at a good price, that is not happening. So the problem is very complex.”

In data shared by the PHRI Bali, currently in Bali there are more than 3,500 hotels with 146,000 rooms.

This is only registered hotels, this does not include hotels, guesthouses, B&Bs, hostels, villas and private rental homes that are not registered with the PHRI.

According to the PHRI hotel occupancy in Bali has never reached the ideal percentage between 2010 to this point in 2024.


Sideman said that over the last 14 years, the average hotel occupancy in Bali has sat between 60-62%, which is lower than the ideal rate of 70-75%.

Even taking into consideration the impacts of the pandemic, with hotel occupancy consistently lower than the sector would like to see, the question of whether Bali needs more hotels, as posed by the PHRI, is understandable. 

Sideman explained, “From 2010 until now, the average hotel occupancy statistics have been 60% to 62%. Normal hotel occupancy is 70% to 75%; the hotel can pay for electricity and employees and already makes a profit. If it’s below that, right? This means that the hotel cannot fulfil its own needs; the hotel is not healthy.”


He added, “Hotel occupancy, which ranges between 60% – 65%, shows that we need tourists to come, but it is said that many guests have already come. However, how come the occupancy has not increased.”

“This means that every year, there are additional properties with a very large number of rooms. The government has never calculated how many tourists each year Bali needs so that all the hotels can be filled.”


Sideman and the PHRI are not the only tourism stakeholders to be calling for the way in which Bali’s tourism development is managed to be changed.

Many academics and even political leaders are calling for an urgent review of spatial planning protocols and for current development and construction law, as well as environmental assessment requirements, to be enforced even more strictly. 

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Wayan Mataram

Saturday 22nd of June 2024

And review, revise, change or delete if necessary the inappropriate or by forced regulations related to tourism industry in Bali Make it simple and straight forward

Wayan Mataram

Saturday 22nd of June 2024

Edited, While improving the current challenges/problems being faced such as: environmental damage, shortage of water supply, electricity, handling of solid & liquid waste, traffic jams, land use/utilisation ,quality & sustainable tourism, protection of cultural traditions It is best to stop all current projects development activities which supporting tourism


Friday 21st of June 2024

Prices have increased exponentially on hotels, resorts and private residences since the end of covid. Unfortunately in some instances the quality of those accomodations have not improved since tourists have started returning to the island. If travel reviews are any indication to go by,then some of these bussiness are just not meeting the standards expected by frugal and savvy travelers. The other 'elephant' in the room is the increase in foreign investment in large condo / village style living and beach club entertainment area's. No matter how they 'sprook' it, thier intentions of not damaging the environment or taking away trade from local vendors is questionable? Infact they target specific age groups, finacially stable investors, and cater to thier every needs to the point where they are almost self sufficient in thier village style habitats, impacting on local businesses and traders. The future of the islands economic success needs to be strategically thought out to achieve a sustainable and competitive market place that's lean and productive, rather than being overweight and sluggish.


Friday 21st of June 2024

Its tge government people building hotel ada 3 proyek dekat saya semua member government have so abit sus di mana kpk


Thursday 20th of June 2024

People People don't complain that doesn't help, as written permits are sold for good money to officials with $$$$$$ in their eyes who have no interest in preserving Bali, only think about themselves and the family and I believe that the corruption department has been abolished.


Friday 21st of June 2024

@@wp, You are above target.