Bali to ban development of hotels in busy areas in bid to tackle overtourism

Tourists strolling along the central street of Ubud. Ubud is the cultural heart of Bali. It's full of restaurants, yoga studios, spa’s and shops. This traditional country town is home to one of Bali's royal families.
Sofia Geraghty
By Sofia Geraghty


Bali is temporarily banning the building of new hotels, nightclubs, and villas in some areas as it continues to move to limit overtourism.

Bali’s interim governer Sang Made Mahendra Jaya has suggested the moratorium in four of Bali’s busy areas as he takes aim at the overcommercialisation of Bali.

A senior official in the Coordinating Ministry of Maritime and Investment Affairs told Reuters that the government has agreed to set the moratorium, however the exact timeline is still being discussed.

One senior minister has been quoted as saying the building suspension could be in place for up to 10 years.

Whilst tourism is central to the Bali – tourism-related businesses make up 80 per cent of the economy – it has caused problems such as overcrowding and crime.

In response to this, officials on the island are increasingly pushing to increase the cost of visiting the island.

Earlier this year, Bali introduced a tourism tax levy of 150,000 rupiah ($15), but now officials are pushing to have this raised to around $75 in a bid to attract ‘higher quality’ visitors.

“I think the 150,000 rupiah tax is too low, so Bali seems like a cheap tourist destination,” a Balinese council leader Kresna Budi told the press after a council meeting on June 19.

“Why should Bali be sold cheaply?” the official reportedly said, highlighting that Indonesians need to pay millions of rupiah to get a visa when visiting Britain.

He went on to say that people who visit Bali should be of “higher quality” and not individuals who disrespect local laws and norms.

“There is this problem because usually, those who act up are members of the bottom layer (lower-spending tourists),” the man is quoted as saying.

Budi suggested that a portion of the tax collected should be used to set up a police force that deals exclusively with tourists.

Feature image: Bali 

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