What the province wants
Bali's provincial government wants every villa and tourism service listed on Airbnb to hold proper permits and pay its taxes. Properties that fail to comply could be taken off the platform.
The move is backed by PHRI, the Indonesian Hotel and Restaurant Association. Its Bali chairman said the effort tackles three core issues: business legality, tax obligations and accommodation quotas.
How much money is involved
PHRI leaders estimate that accommodation transactions through Airbnb in Bali could reach about Rp 50 trillion a year. Taxed at the 10% rate applied to hotel services, that would mean up to Rp 5 trillion in annual revenue.
This is an industry association estimate, not official data. The article does not include any confirmation from the platform itself.
The hoteliers' case
According to PHRI, many properties on Airbnb operate without business permits. They escape oversight and do not report taxes. That creates unfair competition for licensed, tax-paying hotels.
The association wants regulation on three fronts. It calls for mandatory licensing, clear tax compliance and quotas to prevent oversupply.
What this changes
Pressure on platforms shifts enforcement from individual owners to sales channels. An unlicensed property could once operate unnoticed for years. If the platform removes the listing, the owner loses the main source of bookings.
Hoteliers are pushing for quotas as well as taxes. Quotas remain an association proposal, not an adopted rule. The article does not explain how they would work.