Bali Intensifies Crackdown on Unlicensed Tourist Accommodations to Boost Tax Revenue
Bali, Indonesia—In a bid to curb tax evasion and improve the quality of its tourism sector, Bali authorities have stepped up enforcement against unlicensed tourist accommodations. Governor I Wayan Koster recently called on major online travel agents such as Airbnb, Agoda, Booking.com, and Traveloka to promote only legally registered hotels and accommodations that have fulfilled their tax obligations.
Currently, despite having approximately 470,000 accommodations listed across nine online travel platforms, only about 31,000 possess a verified business registration number (NIB). This significant gap indicates widespread operation of unregistered rental properties, many of which do not pay requisite taxes.
Governor Koster highlighted that Bali generated Rp 176 trillion (around US$9.95 billion) in foreign exchange last year. However, the hotel and restaurant taxes, which should theoretically constitute about 10 percent or Rp 17 trillion of that figure, have not met the full potential. The local government has set a target of Rp 8.5 trillion in hotel and restaurant tax revenue for 2026, reflecting untapped sources of income due in large part to unlicensed operations.
The crackdown aims to stem revenue leakage and enhance tax collection from Bali’s hospitality industry, particularly in tourism hotspots including Denpasar and Badung regency. The Badung regional government alone is targeting Rp 6.5 trillion in tax revenue this year. Stricter regulations imposed on online travel agents are expected to boost tax contributions to over Rp 10 trillion in the near future, providing additional funds to support infrastructure development across the island.
Industry stakeholders have expressed support for government measures, emphasizing that enforcing regulations will create a more level playing field and raise the overall standards of tourist accommodations in Bali.
This intensified regulatory effort underscores Bali’s commitment to sustainable tourism growth by ensuring compliance, enhancing governance, and leveraging the sector’s full economic potential.
BaliThisWeek brings you daily snapshots of life in Bali — from local updates and island stories to events, places, and community moments.
Follow us on Instagram and Facebook: @balithisweek
Daily news: balithisweek.net/news/
Explore Bali: balithisweek.net/explore/
Contact us: contact@balithisweek.net
Add a comment