Economics Professor Dr. Putu Anom from Udayana University has warned that the unchecked growth of unlicensed rentals—known locally as akomodasi bodong—is causing Bali to lose out on trillions of rupiah in revenue. These businesses, which often operate under the radar, avoid paying the required Hotel and Restaurant Tax (PHR), creating unfair competition for legitimate hotels, villas, and guesthouses.

“These accommodations are only subject to land and building taxes. Because they are not officially registered as tourism businesses, they cannot be taxed under PHR,” Prof. Anom explained. He urged the provincial government to take stronger action and provide better tools for tourists to identify licensed and legal accommodations.

This call for change is gaining momentum. The newly launched Bali Villa Rental Management Association, officially inaugurated by Deputy Governor Nyoman Giri Prasta, is also advocating for tighter regulations. The association, which already includes 70 members managing over 1,000 properties across Bali and the neighboring islands, aims to raise the standard of villa rentals while protecting the rights of local business owners.

Its Chairman, Kadek Adyana, emphasized the need to “ensure that Balinese culture and people remain the main pillar of the island’s tourism industry,” warning against “incompetent and illegal operators” who often bypass local laws and systems.

Concerns are growing that many of these illegal properties are owned by foreigners or outsiders who operate without permits. This has triggered a wider push among local leaders to reinforce regulations and prioritize Balinese ownership and community interests.

Governor Wayan Koster has vowed to take firm action. Speaking to reporters, he announced that he would crack down on illegal villa operations and require all tourist transport services using non-Balinese license plates to switch to Bali-registered vehicles. Drivers must also hold an Indonesian ID (KTP) with a Balinese address.

“As governor, I have a legal obligation to protect the Balinese people,” Koster declared. “We will discipline illegal operators, as well as tourists who ignore local rules—those riding without helmets, disrespecting traffic laws, or behaving inappropriately. If necessary, they will be deported.”

Koster emphasized that stricter enforcement will begin immediately, highlighting his commitment to restoring order, improving tourist behavior, and ensuring tourism in Bali benefits the people who call the island home.

As Bali aims to maintain its position as a world-class destination, this shift marks a major turning point in how the island balances growth in tourism with long-term sustainability, cultural respect, and community well-being.