Huge blow for Aussies travelling to Bali which could send the cost of a holiday soaring
- Governor has announced a crackdown on Airbnb
Aussies may soon be unable to stay in an Airbnb in Bali as the tourist hotspot signals a major crackdown on the hosting service.
Governor Wayan Koster wants to ban Airbnb operations on the island because he believes they aren't contributing enough to the local economy, with occupancy rates in traditional hotels not mirroring the booming tourist industry.
Speaking at the 15th Regional Conference of the Indonesian Hotel and Restaurant Association in Denpasar this week, Governor Koster issued a stern warning.
'Airbnb does not fully support Bali's local economy, and some operate illegally or unscrupulously. We will regulate them strictly,' he said.
'Not to mention those that are illegal and unscrupulous. We will take action against them with no mercy.
'We must work together; it's not just the government's responsibility, it's all ours.'
He said digital accommodation platforms like Airbnb have a damaging effect on Bali's regional income, particularly on tax revenues from hotels and restaurants.
Governor Koster previously threatened to stop Airbnb accommodation on the island during his first term in office, arguing operators were not paying adequate taxes.
Airbnbs are under threat in Bali as the governor threatens to shut them down
It's been argued that digital accommodation platforms like Airbnb have a damaging effect on Bali's regional income (stock)
Many locals welcomed the news.
'Best thing I've ever heard from him. More places should follow suit,' one said.
'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,' a second said.
Many tourists travelling to Bali opt to stay in private holiday villas rather than hotels.
Authorities are worried that many Airbnb operators run by foreign nationals leasing local homes are are undermining efforts to balance rising tourist numbers with local revenue and hotel occupancy.
The accommodation sector is also concerned about the rise of illegal subletting.
Foreigners often rent properties from locals on long-term leases, then list them on Airbnb at a significant markup.
The Chairman of the Bali Indonesia Hotel and Restaurant Association, Tjok Oka Artha Ardana Sukawati said the trend was detrimental to local revenue.
Aussies may need to find more local accommodation in Bali soon (pictured, Canggu Beach)
Aussies with upcoming bookings and stays in Bali made via Airbnb can expect their travel plans to proceed as planned.
But the era of Airbnb rentals in Bali may soon end if Governor Koster and the provincial government push through new legislation
Australia is consistently the top source of international tourists to Bali, with more than 1.5million visits recorded in 2024.
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