good crabexellent crabVietnamese crab exporter

Foreigners Running Unlicensed Villas Undercut Bali's Hospitality Sector: PHRI

Sopian Hadi
April 30, 2025 | 10:40 am
SHARE
Tourists visit the Ulun Danu Beratan in Bali on March 31, 2025. (Antara Photo/Nyoman Hendra Wibowo)
Tourists visit the Ulun Danu Beratan in Bali on March 31, 2025. (Antara Photo/Nyoman Hendra Wibowo)

Bali. Foreign tourists visiting Bali are increasingly using illegal accommodations, leading to a decline in hotel and villa occupancy rates despite a rise in tourist arrivals. Many of these visitors are also reportedly running unlicensed travel businesses on the island.

According to Indonesia’s Central Statistics Agency (BPS), Bali welcomed 6,333,360 international tourists throughout 2024, up 20 percent from 5,273,258 arrivals in the previous year. However, this surge in foreign visitors has not translated into higher occupancy rates at licensed accommodations.

The occupancy rates of four and five-star hotels in January 2025 stood at around 60 percent, but dipped to roughly 50 percent in February

I Gusti Ngurah Rai Suryawijaya, Deputy Chairman of the Indonesian Hotel and Restaurant Association (PHRI) in Bali, confirmed the growing issue, but the exact financial losses remain unclear due to a lack of concrete data.

ADVERTISEMENT

“They rent villas from local residents on a long-term basis and then commercialize them online. Payments go directly to their personal accounts, allowing them to avoid taxation,” he told Beritasatu.com on Wednesday.

These tourists also provide unauthorized airport transfers, often claiming they are picking up relatives.

“This is deeply concerning. Jobs that should belong to locals are being taken over by foreigners,” Suryawijaya added.

He stressed the need for the government to take decisive action against unlicensed accommodations, especially as hotels and restaurants are key contributors to Bali's regional revenue. Several gubernatorial and regional decrees have already been issued, but enforcement remains a challenge.

“The regulations are in place. What’s needed now is firm implementation to prevent foreigners from casually operating businesses in Bali without paying taxes,” he said.

The rise of illegal businesses run by foreign tourists is seen as severely damaging to local entrepreneurs.

“This practice is harmful, unfair, and distorts healthy competition,” he said.

Suryawijaya called on the Bali Governor to establish a dedicated tourism task force to monitor and curb business activities carried out by foreign nationals. He also encouraged community involvement in reporting such violations.

“There’s already a task force, but it hasn’t been very effective. An ideal task force should be capable of educating, engaging, and communicating with foreigners,” he said.

“If enforcement is left solely to the municipal police, they may face language barriers. The task force should at least be proficient in English or other foreign languages,” he concluded.

Tags: Keywords:
SHARE

Related Articles


Business Jun 19, 2026 | 4:26 pm

All Tourists in Bali Must Use Rupiah

Mandating rupiah use in domestic transactions also aims to support the now-weakening exchange rate.
Business Jun 2, 2026 | 2:42 pm

Indonesia's Foreign Tourist Arrivals Reach Highest Since 2020

Indonesia welcomed 1.25 million foreign tourists in April, lifting Jan-Apr arrivals to the highest level since 2020.
Business May 31, 2026 | 10:07 am

Bali’s Hotel, Restaurant Tax Receipts Jump to $162 Million

Bali is recording more tax revenue, but the province still grapples with illegal accomodations.
Lifestyle May 23, 2026 | 12:13 pm

Weak Rupiah Makes Bali a Bargain for Foreign Tourists

A weaker rupiah is making Bali cheaper for foreign tourists and could help boost visitor numbers to Indonesia.
Lifestyle May 22, 2026 | 2:00 pm

Bali’s Tourism Boom Raises Questions Over Sustainability and Public Space

Bali’s tourism growth is fueling concerns over congestion, shrinking green space, and long-term sustainability.
Lifestyle May 20, 2026 | 7:56 am

Bali Artisans Turn Driftwood Into Exported Artworks and Furniture

Bali artisans are transforming driftwood and recycled natural materials into custom artworks and furniture exported overseas.
Lifestyle May 6, 2026 | 6:27 pm

Bali All-Access Pass Targets Seamless Travel for International Visitors

SatuSatu and TipTip launch a Bali travel pass to streamline itineraries, offering curated experiences and targeting international visitors.
News May 5, 2026 | 3:13 pm

Bali Detains 62 Foreign Nationals in Immigration Crackdown

Bali authorities detained 62 foreign nationals in a 20-day crackdown targeting visa overstays, illegal work and permit misuse.
Lifestyle May 5, 2026 | 9:00 am

Bali Sees Fewer Chinese Tourists, More Americans

Foreign arrivals from China to Bali dropped 58.79% month-to-month in March, BPS says.
News May 4, 2026 | 10:07 am

Bali Detains Three Foreign Women Over Alleged Online Prostitution Scheme

Bali immigration detained three foreign women over alleged online prostitution. They face deportation and possible re-entry bans.

The Latest


News 6 hours ago

Ayase Ueda Scores Twice in Japan’s 4-0 Win Against Tunisia 

Japan’s four goals were the most the Samurai Blue had ever scored in a World Cup game.
News 9 hours ago

Jakarta Completes Rasuna Said Revamp, Removes 109 Derelict Pillars

Jakarta has completed the transformation of Rasuna Said, removing 109 abandoned monorail pillars and upgrading public spaces.
News 9 hours ago

Curacao Earns First-Ever World Cup Point after Goalless Draw with Ecuador

Curacao goalkeeper Eloy Room made 15 saves against a relentless Ecuador attack, allowing The Blue Wave to earn a 0-0 draw.
News 12 hours ago

Germany Beats Ivory Coast 2-1 to Advance to World Cup Knockout Phase

Four-time champion Germany has come back from disappointing group stage exits in 2018 and 2022.
News 12 hours ago

Netherlands Routs Sweden 5-1 to Lead Group F

Sweden coach Graham Potter said the defeat was less about what his team did and more about just how good Netherlands played Saturday.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED