Leaders in Bali are speaking out about the impact that illegally operating tourist accommodation is having on the island.
From the potential dangers to tourists to the impact on the environment and the lasting effects on the local economy and communities, one Bali-based academic says enough is enough.
Economics Professor, Prof. Dr. Putu Anom, has spoken to reporters about how an apparent rise in the number of unlicensed and illegal accommodation providers on the island is impacting the economy and the community.
Illegally operating accommodation, referred to in Indonesian as ‘bodong’ is having an ‘enormous’ impact on the Balinese economy, resulting in trillions of rupiah of losses.
Prof Anom told reporters how when illegal tourism accommodation providers are left unchecked, not only does the government miss out on vital tax revenue, but official, linseed and legally operating accommodation providers lose out on bookings. All legally operating hotels, hostels, B&Bs, guesthouses, villas, resorts, restaurants, cafes, and eateries in Bali must pay their Hotel and Restaurant Tax, referred to as the PHR.
Prof Anom told reporters that accommodation providers who do not have formal tourism permits are slipping through the next, and are not paying their PHR contributions. He shared “They are only subject to land and building tax, not PHR, because they are not officially registered as tourism accommodation, so they cannot be taxed.”
As a lecturing professor at Udayana University in Denpasar, Anom’s advice to the Bali Provincial Government is to take strict action against unlicensed tourist accommodation and to make it easier for tourists to identify unlicensed accommodation providers.
It is not only Prof. Anom who wants to see improvements to how tourism accommodation is managed in Bali. Earlier this month the Bali Villa Rental Management Association was formally inaugurated by the Deputy Governor of Bali, Nyoman Giri Prasta.
The association is on a mission to help improve the management of tourism villas in Bali, in turn improving the quality, comfort, and safety of tourist stays and supporting local business owners across the province.
The Bali Villa Rental Management Association already has 70 members who manage over 1,000 private tourist rental properties across Bali, Nusa Penida, Nusa Lembongan, and Nusa Ceningan.
In a press interview the Chairman of the Bali Villa Rental Management Association, Kadek Adyana, shared “We must be strong in Bali, how to make Balinese people and culture able to become the main pillars to strengthen tourism, do not let incompetent and illegal outsiders operate their business in Bali without permission.”
There are concerns that many of the accommodation businesses that are operating illegally in Bali are owned and operated by foreigners. There is a strong focus in Bali right now, across the business world, to promote and protect the rights and opportunities of the Balinese people. It is an issue that the Governor of Bali, Wayan Koster, has also been speaking out this week.
Governor Koster told reporters that he will be ordering more strict law enforcement on both foreigners and non-Balinese Indonesian nationals who try to operate outside of the law in the province.
In statements that touched on many of the most pressing issues the island is facing right now, Governor Koster shared “I will firmly and firmly stop various violations of villas without permits, vehicles operating in Bali transporting tourists with plates outside Bali must use Bali Plates or DK, drivers must have Indonesian ID cards with Balinese addresses.”
He added ”As a regional head, it is my legal obligation to protect the Balinese people. Likewise, we will discipline naughty tourists on the road who do not wear helmets, only wear t-shirts, violate traffic signs, and fight the police, this is not right, I will immediately deport them If those who violate the law are processed legally so that everything is orderly. I will do it firmly starting next week.”
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