A new drama involving tourists is unfolding in Bali. It has come to light that many foreigners are staying in unregistered accommodations, leading to significant economic losses for the island. The government is losing tax revenue, while official hotels are struggling with reduced income.
Balinese economist I Putu Anom, a professor at Udayana University, stated that numerous illegal villas and guesthouses rented out to foreign tourists reduce tax revenues since, without a license, they are not required to pay hotel and restaurant taxes. They only pay land and property taxes.
In his opinion, this practice should be banned. Tourists coming to Bali should stay only in licensed accommodations to ensure transparent tax revenues.
Hotel owners are also concerned about the growing trend of tourists choosing villas over hotels. However, the Ministry of Tourism disagrees, arguing that selecting villas instead of hotels in Bali is normal, as every traveler has their own preferences and budget.
This trend is not surprising. Villas offer significantly more privacy, space, and flexibility. Hoteliers are worried—hotel occupancy rates have sharply declined. Additionally, both national and regional authorities have started holding fewer events in hotels due to recent budget cuts.
Whatever accommodation option you choose, it’s important to be cautious to avoid unpleasant situations involving dishonest landlords and scammers. The simplest way to ensure a villa or hotel is legitimate is to check reviews on Google Maps.
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