What changed
Bisnis.com reports that authorities extended the deadline for sorting out accommodation licences to 31 May 2026. The stated aims are better sector governance, fair competition and less pressure on the environment.
The move covers villas, guesthouses, homestays and other formats sold through online platforms.
Typical violations
Bisnis.com lists the usual problems. One property is posted on OTAs several times under different listings. Businesses operate under the wrong KBLI (business activity code). Homestays run as commercial hotels, and homes registered for long-term rental are sold by the night.
Building that spreads into green and protected areas is also flagged.
Industry view
Kadek Adnyana, who chairs the Bali Villa Rental and Management Association, said a good number of properties are inactive or lack legal status. Maulana Yusran, secretary general of hotel and restaurant association PHRI, called the clean-up an important opportunity to deal with unlicensed alternative lodging.
Both groups see weak enforcement as the root of the problem.
What followed the deadline
Two weeks after the report, Tourism Minister Widiyanti Putri Wardhana announced a list of about 1,600 unlicensed properties sold via OTAs. Removal of those listings began on 1 August 2026.
The associations also point to the wider effects of unchecked growth. These include land conversion, strain on infrastructure, displacement of local residents and more offences around unsupervised properties. The industry now wants consistent enforcement rather than new deadlines.