In a tense meeting at Jayasabha, Bali’s governor demands platform accountability, threatens prosecution for non-compliant operators, and proposes integration with provincial platform Love Bali.
DENPASAR, Bali — Bali Governor Wayan Koster has asked Airbnb to remove accommodation listings that do not comply with local licensing and tax regulations, warning that authorities may pursue legal action against operators who continue to violate provincial rules.
The request was delivered during a meeting with Airbnb Public Policy Lead Shanta Arul and her delegation at the Jayasabha official residence on Wednesday.
“If they are not compliant, I expect these villa operators and tourism service providers to be removed from Airbnb’s digital platform listing,” Koster said in a written statement released after the meeting.
Provincial officials say a growing number of tourism accommodations advertised online operate without permits or tax registration, creating uneven competition with licensed hotels and guesthouses.
Proposal to Integrate With “Love Bali”
Alongside enforcement, the governor proposed cooperation. He invited Airbnb to coordinate with the provincial government’s Love Bali digital platform, which currently manages foreign tourist levy administration and tourism-related programs.
Koster said the government does not intend to restrict legitimate business activity.
“We do not limit people who wish to do business in the tourism sector, as long as they comply with regulations and share responsibility for maintaining Bali’s tourism quality,” he said.
The proposal would link platform listings more closely with local compliance requirements, though technical details have not yet been announced.
Licensing and Tax Compliance
The governor emphasized that permits and tax obligations must precede promotion on booking platforms.
“I hope Airbnb will require these tourism accommodations to pay taxes and obtain permits before they are promoted,” he said.
“For those who remain non-compliant, we will apply legal proceedings.”
Provincial authorities have recently intensified enforcement measures against unlicensed tourism businesses, including administrative sanctions and property closures in several regencies.
Officials also cited concerns about tax losses and the potential impact on Bali’s tourism image if informal accommodations continue to expand without oversight.
Airbnb Response
Airbnb said it is open to cooperation with the provincial government.
“Airbnb takes this licensing matter very seriously, and we are ready to cooperate with the government,” Arul said during the meeting.
The company did not immediately outline how it would verify permits across listings or whether host data would be shared with local authorities.
Broader Enforcement Context
The discussion follows wider regulatory actions in Bali’s tourism sector in recent months, including inspections of foreign-operated businesses, investigations into unlicensed vehicle rental operators, and stricter monitoring of land-use compliance.
Officials say the measures aim to ensure fair competition between licensed and unlicensed operators and to protect local tax revenue.
Implications for Hosts and Investors
For property owners listing accommodations online, the meeting signals closer scrutiny of permit status and tax registration.
While no implementation timeline has been announced, authorities indicated that non-compliant operators may face delisting or legal action.
Further coordination between the provincial government and Airbnb is expected as both sides discuss technical mechanisms for compliance verification.
Koster concluded that tourism growth must align with local regulations and cultural preservation.
“Without Balinese culture, there is no tourism in Bali,” he said.
The outcome of the proposed cooperation will depend on follow-up negotiations between the provincial government and the platform in the coming weeks.