Bali appears to be taking a serious approach to regulating one of the islands most lucrative industries short-term tourist rentals. The Bali Villa Rental Management Association (BVRM) has proposed tightening control over property owners who rent out homes to tourists. According to BVRM, short-term rentals have become one of the most attractive accommodation options for visitors.
However, the record-breaking influx of foreigners and skyrocketing demand have also attracted many unqualified and unauthorized operators into the business. As a result, the quality of rental properties has been declining, with landlords prioritizing quick profits over guest comfort. This, in turn, negatively affects Balis overall reputation.
To address these issues, BVRM plans to introduce a verified list of authorized tourist villas. Villas included in this registry must meet Indonesian safety standards, while the companies managing them will be required to pay taxes in Indonesia and hire staff in compliance with local labor laws. Villas that fail to make the cut will be marked as unsafe and not recommended for tourists.
BVRM Chairman Kadek Adnyana stated, “We hope that the government and police will assist us in stopping these illegal practices by implementing strict regulations to reduce or even eliminate fraud in this industry.”
He added, “Balis tourism industry already faces multiple challenges, from traffic congestion and waste management to safety concerns in the eyes of the global community. If the issue of rental scams continues to be ignored, Balis reputation will suffer further. We aim to be the official certification body. Consumers will be able to use a website, in collaboration with Balis Tourism Office, to book verified villas. Agents not listed will be deemed unsafe and not recommended.”
Adnyana also highlighted a significant economic concern: many illegally rented villas accept online payments through bank accounts that are not registered in Indonesia. As a result, the country receives no financial benefit, while enormous revenues flow overseas.
“Bali is being used solely as a cash machine, while the environmental and social consequences such as waste management become our burden. We are calling for strict oversight from immigration authorities and other policymakers”, Adnyana emphasized.
BVRM aims to become the official regulatory body responsible for villa verification. However, it remains unclear how Balis government will respond to this proposal. So far, the Bali Tourism Board has not issued any official statements regarding BVRMs request.
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