Hundreds of Thousands of Tourists Enter Bali but Hotel Occupancy Drops: Unlicensed Accommodation Under Scrutiny
DENPASAR – Hundreds of thousands of tourists entered Bali at the start of 2025, yet hotel occupancy rates declined, raising questions. These so-called 'phantom tourists' are suspected of staying in unlicensed accommodation owned by fellow foreign nationals, such as villas and homestays.
In response, a number of stakeholders held a coordination meeting on optimising regulation and oversight of the accommodation sector in Bali Province, which took place at the Bali Provincial Tourism Office on Monday, 28 April 2025. The meeting also discussed plans to conduct a census of villas, hotels and homestays reportedly operating without tourism permits.
The aim is to ensure all tourism accommodation in Bali is registered, thereby contributing to regional revenue.
Deputy for Industry and Investment at the Ministry of Tourism, Rizki Handayani Mustafa, said her office is reviewing official data from the Central Statistics Agency (BPS) and the Investment Coordinating Board (BKPM) regarding unlicensed accommodation in Bali. She noted discrepancies in field data, meaning further identification of unlicensed accommodation is still required. Coordination on the data collection effort will be carried out jointly with regional and central government authorities, with follow-up actions to be agreed upon.
"Regarding unlicensed accommodation, we currently have BPS and BKPM data that we are reviewing because there are discrepancies on the ground. There are thousands of discrepancies and identification is still ongoing," Rizki explained.
On the issue of accommodation licensing through the Online Single Submission (OSS) system, which is suspected of contributing to uncontrolled development in Bali, she said the matter has been identified and will be raised with BKPM.
"The purpose of OSS is to simplify things, but in the field there have been several cases that need further discussion. For instance, if we look at the Indonesian Standard Industrial Classification (KBLI), residential land is designated for housing. The permits are not wrong, but the usage is — so oversight is needed," she added.
Going forward, once the data collection is complete, unlicensed accommodation will be directed to obtain permits or register as tourism accommodation. This will enable a comprehensive mapping of tourism accommodation across Bali.
Meanwhile, Head of the Bali Tourism Office, Tjokorda Bagus Pemayun, said Bali already has regional regulations governing buildings and related matters. He affirmed this would be a focus of attention for the Bali Provincial Government in taking action against violations.
"After all, foreign tourists come to Bali — as I mentioned — to see the beauty of Bali, its people and its culture. Culture in the sense of all its buildings and everything else," said Tjok Pemayun.
In response, a number of stakeholders held a coordination meeting on optimising regulation and oversight of the accommodation sector in Bali Province, which took place at the Bali Provincial Tourism Office on Monday, 28 April 2025. The meeting also discussed plans to conduct a census of villas, hotels and homestays reportedly operating without tourism permits.
The aim is to ensure all tourism accommodation in Bali is registered, thereby contributing to regional revenue.
Deputy for Industry and Investment at the Ministry of Tourism, Rizki Handayani Mustafa, said her office is reviewing official data from the Central Statistics Agency (BPS) and the Investment Coordinating Board (BKPM) regarding unlicensed accommodation in Bali. She noted discrepancies in field data, meaning further identification of unlicensed accommodation is still required. Coordination on the data collection effort will be carried out jointly with regional and central government authorities, with follow-up actions to be agreed upon.
"Regarding unlicensed accommodation, we currently have BPS and BKPM data that we are reviewing because there are discrepancies on the ground. There are thousands of discrepancies and identification is still ongoing," Rizki explained.
On the issue of accommodation licensing through the Online Single Submission (OSS) system, which is suspected of contributing to uncontrolled development in Bali, she said the matter has been identified and will be raised with BKPM.
"The purpose of OSS is to simplify things, but in the field there have been several cases that need further discussion. For instance, if we look at the Indonesian Standard Industrial Classification (KBLI), residential land is designated for housing. The permits are not wrong, but the usage is — so oversight is needed," she added.
Going forward, once the data collection is complete, unlicensed accommodation will be directed to obtain permits or register as tourism accommodation. This will enable a comprehensive mapping of tourism accommodation across Bali.
Meanwhile, Head of the Bali Tourism Office, Tjokorda Bagus Pemayun, said Bali already has regional regulations governing buildings and related matters. He affirmed this would be a focus of attention for the Bali Provincial Government in taking action against violations.
"After all, foreign tourists come to Bali — as I mentioned — to see the beauty of Bali, its people and its culture. Culture in the sense of all its buildings and everything else," said Tjok Pemayun.