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Bloomberg

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 guest houses 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 overbuilding 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 4 million.
The local government has tightened tourism rules in response, including imposing a new levy on international visitors and stepping up enforcement against unlicensed operators.
Officials say such measures are aimed at ensuring tourism does not come at the expense of tax compliance and environmental management.
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 major 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 North America business moderate.
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 South 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.


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Southeast Asia

Airbnbs have emerged as a cheaper alternative to the sprawling resorts that dot the island, eroding tax revenue from hotels


Airbnbs have emerged as a cheaper alternative to the sprawling resorts that dot the island, eroding tax revenue from hotels.


Tourism

Asia travel

Airbnb

Indonesia’s Bali mulls Airbnb ban to put a lid on revenue leak, overtourism

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Airbnbs have emerged as a cheaper alternative to the sprawling resorts that dot the island, eroding tax revenue from hotels

Airbnbs have emerged as a cheaper alternative to the sprawling resorts that dot the island, eroding tax revenue from hotels