Bali ponders Airbnb ban in latest effort to curb tourism mess
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More than 2,000 hotels and villas are operating without permits and will face sanctions, the governor said.
PHOTO: AFP
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BALI – Bali is considering a ban on Airbnb’s accommodation, its latest attempt to impose order on a resort island struggling to cope with a record surge in tourism.
Use of Airbnb-style rentals has exploded in recent years, eroding tax revenue from hotels even as foreign arrivals boom, Bali Governor I Wayan Koster told state news agency Antara.
The proliferation of unregistered villas and guesthouses in turn hampers the government’s ability to raise revenue to fund public services, he was quoted as saying.
Bali – popularly known as Indonesia’s island paradise – is grappling with the fallout from a post-Covid tourism boom, from mind-numbing traffic congestion to over-building and environmental damage.
Airbnbs have emerged in recent years as a cheaper, popular alternative to the sprawling resorts and luxury hotels that dot the island of four million.
The local government has tightened tourism rules in response
A ban in Bali would be a blow to Airbnb’s international expansion, which the San Francisco-based company has identified as one of its key areas for investment to drive new growth.
Reservations in Asia and Latin America have been driving most of Airbnb’s growth in recent years as gains in its North America business moderates.
To attract more international users, it began allowing local payment methods in about two dozen countries in late-2024.
In particular, it named Indonesia, Brazil and Korea as examples of where local payments were available in its fourth-quarter 2024 report.
The Bali governor’s office did not immediately respond to a request for comment. Airbnb did not respond to requests for comment outside normal business hours.
More than 2,000 hotels and villas are operating without permits and will face sanctions, the governor added.
Roughly 16,000 lodging units are getting marketed online, competing with the 378 members of Bali’s Indonesian Hotel and Restaurant Association, the state news agency reported. BLOOMBERG
