Bali Villa Rental Management Association Formed to Combat Illegal Rentals

Denpasar, Bali – In a significant step towards regulating the villa rental market in Bali, private villa managers have formed the Bali Villa Rental Management Association (BVRMA). The formal inauguration took place this week in Denpasar, presided over by Deputy Governor Nyoman Giri Prasta. This newly established organization aims to address the growing issue of illegal villa operations in the province, ensuring safety for tourists and fairness for local business owners.

A Unified Approach to a Pressing Problem

At the launch, Kadek Adyana, the Chairman of BVRMA, highlighted that the association comprises 70 companies, managing over 1,000 private tourism rental properties across Bali. “By joining forces, we aim to tackle the rising phenomenon of illegal villas, which threaten both tourists’ safety and the interests of legal operators,” Adyana stated.

He expressed concern regarding the proliferation of foreign-owned private tourism villas that operate without proper permits or registration in various regions of Bali. Research conducted by the founding members of BVRMA revealed that unauthorized villa operations are particularly rampant in popular tourist destinations such as Canggu, Uluwatu, and Ubud, where the concentration of such illegal rentals has reached alarming levels.

Addressing Safety and Regulatory Concerns

The establishment of the BVRMA is rooted in a commitment to enhancing tourist safety and advocating for the economic rights of Balinese entrepreneurs. Adyana emphasized the necessity of protecting local culture and livelihoods, stating, “We must strengthen the pillars of Balinese identity and ensure that only those who respect our customs and regulations operate here. We will not allow incompetent individuals to disrupt our tourism sector.”

Deputy Governor Nyoman Giri Prasta echoed this sentiment, acknowledging the urgent need for regulatory frameworks to combat illegal villas. He mentioned that the provincial government is seeking support from the BVRMA to impose stricter regulations on foreign investments in Bali, particularly those accessing land and permits through marriages to Balinese citizens.

Prasta asserted, “Foreigners must operate in an orderly manner on the island. With this association, we aim to ensure that everyone in Bali respects our customs, culture, and established rules.”

The Impact of Illegal Villas on Tourism

The presence of illegally operating villas poses serious risks not only to tourists but also to the legitimacy of the tourism industry in Bali. Unlicensed properties may not meet vital safety standards, risking guests’ wellbeing and peace of mind. Moreover, inaccurate marketing tactics can lead to disappointments, with travelers arriving at properties far removed from their expectations.

Tourists are legally required to reside in registered accommodation while in Bali, a fact that reinforces the importance of compliance with regulations. Many holidaymakers trust that their chosen accommodations adhere to local laws when making their bookings.

Looking Toward the Future

The BVRMA’s creation represents an important step toward ensuring accountability among villa management businesses, whether they are locally owned or foreign-operated. As the association moves to establish a clear regulatory framework, it aims to provide a safer and more reliable environment for tourists, while simultaneously protecting the interests of compliant local businesses.

The formal establishment of BVRMA was recorded under Decree Number 29/28 on August 28, 2024, and its Business Identification Number is 1211240089749. Its public launch serves as an invitation for existing villa operators to join the cause toward a more sustainable and law-abiding hospitality sector, benefitting everyone involved in Bali’s thriving tourism industry.

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