Bali’s Leaders Rally Against Illegal Tourist Accommodation

In a recent wave of discussions, leaders in Bali are raising critical concerns about the detrimental effects of illegally operating tourist accommodations, commonly referred to as "bodong" in Indonesian. As the island remains a premier destination for travelers, the unchecked growth of these unlicensed accommodation providers is posing threats not only to the safety of tourists but also to the local economy and the environment.

Economic Concerns Amplified

Prof. Dr. Putu Anom, an esteemed Economics Professor at Udayana University in Denpasar, has been vocal about the significant economic ramifications linked to the rise of unlicensed lodging options. In interviews with reporters, Prof. Anom outlined how these entities are causing "enormous" damage, resulting in financial losses amounting to trillions of rupiah for Bali.

He highlighted that the existence of illegal accommodations means that the government is missing out on crucial tax revenue meant to fuel public services and infrastructure. While officially registered hotels, hostels, bed and breakfasts, guesthouses, villas, and other hospitality options are obligated to pay the Hotel and Restaurant Tax (PHR), those operating without necessary permits evade these responsibilities.

"They are only subject to land and building tax, not PHR, because they are not officially registered as tourism accommodation, so they cannot be taxed," said Prof. Anom, emphasizing the need for stringent regulations.

A Call for Action

Prof. Anom, along with other stakeholders, is urging the Bali Provincial Government to take decisive action against these rogue operations. He advocates for clearer guidelines that would enable tourists to discern between licensed and unlicensed lodging, thereby protecting both the visitors and legitimate businesses.

This sentiment is echoed by the recent formation of the Bali Villa Rental Management Association, which was officially inaugurated earlier this month by Deputy Governor Nyoman Giri Prasta. The association, established with 70 members managing over 1,000 private rental properties across Bali, Nusa Penida, Nusa Lembongan, and Nusa Ceningan, aims to elevate the standards of tourism accommodations on the island.

Chairman Kadek Adyana articulated the collective goal: “We must be strong in Bali, how to make Balinese people and culture able to become the main pillars to strengthen tourism. We cannot allow incompetent and illegal outsiders to operate their businesses in Bali without permission.”

Government’s Firm Stance

Concerns have been raised that a significant portion of illegally operated accommodations are run by foreign nationals. This has initiated a broader dialogue about protecting the rights and opportunities of Balinese citizens within the tourism sector. Governor Wayan Koster has recently made headlines by committing to more rigorous law enforcement against illegal tourist accommodations and transportation services.

“In my capacity as a regional head, it is my legal obligation to protect the Balinese people,” Governor Koster stated. He elaborated on plans for rigorous enforcement, which include stopping unlicensed villas and regulating tourist transportation services. “I will firmly stop various violations of villas without permits. Vehicles operating in Bali must be registered locally, and drivers must possess Indonesian ID cards with Balinese addresses,” he declared.

Koster further emphasized the need for tourist compliance with local laws, threatening deportation for those who violate regulations, such as disregarding traffic laws. His approach signals a multifaceted effort to restore order to Bali’s tourism sector and safeguard the interests of its residents.

Conclusion

The combined efforts of academics, local business leaders, and government officials signal a pivotal moment for tourism management in Bali. With a united front against illegal accommodations, the hope is to create a sustainable tourism environment that respects the rights of local communities while ensuring the safety and satisfaction of visitors. As Bali navigates these challenges, the commitment to uphold the integrity of its tourism sector remains paramount.