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View all search resultsBali tightens crackdown on unlicensed tourist accommodation
According to the Tourism Ministry, of 470,000 accommodations listed on nine online travel agents platforms, only around 31,000 accommodations are listed with a verified business registration number (NIB).
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Beach walk: Tourists walk on April 8, 2026, along Kuta beach near Denpasar, Bali. (AFP/Sonny Tumbelaka)
B
ali authorities are intensifying a crackdown on unlicensed tourist accommodation to curb tax evasion, a move industry players say is necessary to create a level playing field and higher tourism quality.
Earlier this month, Bali Governor I Wayan Koster urged online travel agents, such as Airbnb, Agoda, Booking.com and Traveloka, to only promote legal hotels or accommodations.
“At least [the accommodation should] have paid its taxes. If not, then don’t promote them. There are thousands of villas or houses being converted as rentals, but they don’t pay taxes, causing a huge loss of [potential hotel and restaurant taxes],” he said on May 8, as quoted by Antara.
Koster noted that Bali generated Rp 176 trillion (US$9.95 billion) in foreign exchange earnings last year, with hotel and restaurant taxes theoretically contributing around 10 percent, or Rp 17 trillion. Yet the local administration is targeting only Rp 8.5 trillion in hotel and restaurant tax revenue this year, highlighting what officials see as massive untapped potential.
Authorities expect the crackdown to plug revenue leaks and lift tax collection from Bali’s hospitality sector, particularly in tourism hubs such as Denpasar and Badung regency.
“Badung has targeted Rp 6.5 trillion for this year. Going forward, online travel agents will be better regulated so that it can reach over Rp 10 trillion, which could then be used as a [financial support] for our infrastructure [development],” Koster said.
Read also: Hotels demand crackdown on unlicensed rentals in Bali
