December 3, 2025 | 05:20 pm
TEMPO.CO, Denpasar - Bali Governor Wayan Koster has announced plans to halt Airbnb operations on the island, citing their minimal contribution to local revenue.
“This will be reviewed, and we intend to propose that it be halted,” Koster said during the 15th Regional Conference of the Indonesian Hotel and Restaurant Association (PHRI) Bali in Denpasar on Wednesday, December 3, 2025, as reported by Antara.
Koster explained that digital-based accommodation platforms affect Bali’s regional income, particularly tax revenue from hotels and restaurants.
Despite rising tourist arrivals, he noted that occupancy rates at traditional hotels, especially those affiliated with PHRI Bali, have not seen a corresponding increase.
He added that more than 2,000 unlicensed hotels and villas in Bali need to be regulated. Koster urged tourism stakeholders to support the government in cracking down on accommodations that fail to contribute to regional revenue.
“Airbnb does not fully support Bali’s local economy, and some are illegal or operate unscrupulously. We will regulate them strictly. This is a shared responsibility . It’s not just the government’s duty, but ours collectively,” he said during his speech at the conference.
PHRI Bali Chair Tjok Oka Artha Ardana Sukawati highlighted that the association currently has 378 member accommodations, a small fraction compared to an estimated 16,000 units marketed online.
Oka also noted that Airbnb operations are often run by foreign nationals who lease local homes and rent them out daily through digital platforms.
“This disrupts the link between increasing tourist visits, local revenue, and hotel occupancy,” he said.
According to the Bali Regional Office of the Directorate General of Treasury, as of October 2025, Bali’s locally generated revenue reached Rp15.3 trillion, or 71 percent of the total budget ceiling of Rp21.5 trillion, representing a 9.58 percent increase compared to the same period in 2024.
Local taxes remain a major contributor, totaling Rp12 trillion, of which Rp7.13 trillion comes from specific goods and services taxes (PBJT), which grew 14.76 percent year-on-year. PBJT covers sectors including food and beverage, hospitality, arts, and entertainment.
Read: How Millennials, Gen Z, and Gen X Spend Their Holidays Differently
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