The Governor of Bali, Wayan Koster, stated that the island continues to face a serious problem - foreign tourists illegally renting out thousands of villas and homes.
According to the Ministry of Tourism, such activities are carried out without paying taxes, leading to significant budget losses. If this practice is addressed, revenues in the Badung and Denpasar districts could increase by trillions of rupiah.
To address the issue, the authorities are creating five teams to focus on 'cleaning up' in two key areas: the transport rental sector and private villas rented by foreigners. Koster also plans to discuss further steps with the Minister of Tourism, Widiyanti Putri Wardani, to develop a deeper strategy and coordinate an action plan.
The governor emphasized that the situation requires strict measures. In addition to illegal rentals, the island's tourism sector faces other pressing issues: informal transportation, tourists who disrespect laws and cultural norms, and prostitution.
The advisor of the Bali Villa Association, Gede Ricky Sukarta, noted that foreigners often acquire luxury properties and rent them to other tourists, effectively excluding local residents from economic processes and reducing tax revenues. Often, to hide the true owner, schemes with nominal owners or fake marriages with Indonesian citizens are used. Previously, the authorities of Bali announced the preparation of a regional law prohibiting such practices, but it has not yet been considered by the parliament.
In 2024, Bali was visited by 6.4 million foreign tourists. Bali's share in the total flow of foreign tourists in the country was 46%.
By the end of the year, Bali generated 107 trillion rupiah in foreign exchange revenue from tourism, accounting for 44% of the national figure (243 trillion rupiah), making the island a key source of income for the entire industry.
Sources: tirto, tribunnews
You can add one right now!