The governor of Bali has issued a stark warning that he intends to ban Airbnb and similar digital accommodation platforms from operating on the Indonesian island, a move that could significantly impact Australian holidaymakers.
Governor's Stern Warning to Digital Platforms
Speaking at the 15th Regional Conference of the Indonesian Hotel and Restaurant Association in Denpasar, Governor Wayan Koster declared his intention for a major regulatory crackdown. He argued that platforms like Airbnb do not fully support Bali's local economy and that many operate outside the law.
"Airbnb does not fully support Bali's local economy, and some operate illegally or unscrupulously. We will regulate them strictly," Governor Koster stated. "Not to mention those that are illegal and unscrupulous. We will take action against them with no mercy."
He emphasised that the responsibility for addressing the issue was a collective one, urging cooperation beyond just government action.
Economic Impact and Local Backing
The core of the governor's argument centres on regional income. He believes digital accommodation platforms have a damaging effect on Bali's tax revenues, particularly those traditionally collected from hotels and restaurants. This is not his first threat; he raised similar concerns during his first term, alleging operators were not paying adequate taxes.
The accommodation sector shares these worries, pointing to the rise of illegal subletting. A common practice sees foreigners leasing properties from locals on long-term contracts, only to list them on Airbnb at a significant markup. Tjok Oka Artha Ardana Sukawati, Chairman of the Bali Indonesia Hotel and Restaurant Association, confirmed the trend is detrimental to local revenue.
Many local residents have welcomed the proposed crackdown. "Best thing I've ever heard from him. More places should follow suit," one said. Another added, "Good, get rid of Airbnb as they don't pay tax and let the hotel occupancies recover. It's been hurting hotel occupancies for years."
What This Means for Australian Visitors
The potential ban carries substantial weight for Australia, which is consistently the top source of international tourists to Bali. Official figures recorded more than 1.5 million Australian visits in 2024. A significant portion of these travellers opt for private holiday villas and Airbnb-style rentals over traditional hotels.
For now, Australians with existing bookings can expect their travel plans to proceed. However, the era of easily booking an Airbnb in Bali may be drawing to a close if Governor Koster and the provincial government successfully push through new legislation. The move underscores a growing global tension between disruptive digital rental platforms and established tourism economies seeking to protect local revenue and traditional businesses.
