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.
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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.
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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.