Bali Mandates Permits for Online Accommodation Amid Hotel Sales

New Regulations for Digital Accommodation Platforms

Bali's Provincial Administration has introduced new regulations for accommodations offered via digital platforms such as Airbnb. According to Hariyadi BS Sukamdani, Chairman of the Indonesian Hotel and Restaurant Association (PHRI), the Ministry of Tourism now requires all properties listed on these applications to be officially registered businesses.

This mandate includes possessing a Business Identification Number (NIB) and other necessary operating permits. Hariyadi made this statement on Tuesday, 22 September 2026, adding that the government is actively monitoring online listings. Non-compliance could result in platforms being blocked from access within Indonesia.

Addressing Market Displacement and Hotel Sales

The regulatory changes aim to counter the market displacement faced by small hotels in Bali, which have seen their share eroded by unlicensed private and small accommodation providers on digital platforms. This competition from unregulated businesses is cited as a reason for some hotel operators selling their properties.

The Bali Provincial Government has also announced it will investigate reports of hotels being listed for sale on various online marketplaces. Governor Wayan Koster has directed the Bali Tourism Office to coordinate with the Badung Tourism Office and the Provincial Licensing Agency to verify licensing and registration details for these properties.

Bali's Tourism Growth and Business Dynamics

Despite the hotel sales, tourism in Bali continues to show strong growth. Hariyadi noted that tourist visits surpassed pre-COVID-19 levels, reaching 6 million by mid-2025, with further increases expected this year. Governor Koster estimates that these hotel sales are primarily linked to companies' internal business dynamics, rather than a downturn in Bali's tourism sector.

He clarified that some businesses may divert profits from successful Bali operations to offset losses in other regions. Koster also dismissed concerns about an oversupply of rooms, stating that star-rated hotels maintain healthy occupancy rates, averaging 80–90 percent.

Implications for Destination Weddings and Honeymoons

For couples planning destination weddings or honeymoons in Bali, these regulations introduce a layer of assurance regarding accommodation legitimacy.

While the market sees properties for sale—with at least 20 hotels and villas listed on Rumah123 alone, ranging from Rp 19 billion to Rp 600 billion in areas like Ubud and Seminyak—the push for official registration means greater transparency.

Couples and wedding planners should verify that any chosen venue or accommodation partner holds the required Business Identification Number and operating permits. This ensures compliance and provides a more secure booking experience for their special occasion in Bali.