Bali’s Possible Airbnb Ban: What It Means For Travellers

Bali's Governor has sent a shockwave through the travel world after being reported at a recent event saying the government will consider plans to stop Airbnb style accommodation on the island. The Governor argues that many villas and short term rentals do not follow zoning and tax rules and are not contributing fairly to Bali’s local economy.

For anyone planning a Bali trip, especially budget travellers and digital nomads who rely on villa and homestay rentals, this raises big questions.

The original article was published in The Jakarta Post but a non-paywalled version is available on The Bali Sun website.

What Is Actually Being Proposed?

According to the local reporting, the governor told the Indonesian Hotel and Restaurant Association conference in Denpasar that the government will review Airbnb in Bali and may propose that it is “stopped” if the platform and its listings do not support regional tax income. Key points so far:

This is a proposed crackdown, not an instant ban

The focus is on unlicensed and illegal villas that are advertised online

Authorities believe many properties break spatial planning rules, skip permits or avoid local taxes 

Other reports say Bali has more than 2,000 hotels and villas operating without permits, and around 16,000 lodging units marketed online that compete with a few hundred officially registered hotels and resorts.

At the same time, Bali is trying to manage over-tourism, crowded infrastructure and environmental strain after a surge in post pandemic visitors.

It appears this is part of a much wider clean up of tourism businesses.

Has anything changed right now?

No, this is just a report from a comment made by the Governor. It is not the first time the government have discussed this. Nothing has or will change immediately.

You may wish to express caution about booking Airbnb's too far into 2026 and consider exploring other options.

Budget Bro will update this article with any developments.