(Dec 10): The Indonesian government has pushed back on Bali’s plan to ban Airbnb Inc rentals, saying such services are needed to foster tourism in Southeast Asia’s largest economy.
Regulators will instead encourage owners of villas and guest houses on the popular holiday island to get proper licences, ensuring compliance with service standards and tax obligations, the Tourism Ministry said in a Dec 8 statement. Airbnb will be asked to delist properties whose owners aren’t complying, according to the statement.
“The government has never banned, and does not intend to halt, operations of online travel agencies in Indonesia,” the ministry clarified.
Bali governor I Wayan Koster told state news agency Antara last week that Bali is considering a ban on Airbnb accommodation in an attempt to cope with a surge in tourism. The use of Airbnb-style rentals has exploded in recent years, eroding tax revenue from hotels even as foreign arrivals boom, Koster said.
Bali is the main driver of international tourists to Indonesia, accounting for 45% of the 1.3 million arrivals in October, official data show. However, the mass numbers of people have led to traffic jams, environmental damage and rising living costs, putting pressure on Bali’s local leaders to take action.
Koster didn’t respond to a request for comment Wednesday.
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