The Bali Provincial Tourism Office has warned that owners of unlicensed tourism businesses, including villa rentals, may lose their property rights if found operating illegally. The warning follows recent inspections and discussions about the increasing number of unauthorized tourism operations across the island.
The issue was brought to light during a public discussion titled “Membedah Izin Villa Rental di Bali” organized by the Bali Villa Rental and Management Association (BVRMA) in Gianyar on Friday, October 24, 2025. Officials and industry representatives discussed the growing concern over villas operating without proper licenses and the resulting impact on the local economy and tourism governance.
“Give us time to nurture our members. Do not immediately check, be investigated, and close this business. It’s not good for the business climate,” said the Chairman of the Bali Villa Rental and Management Association (BVRMA), I Kadek Adnyana.
Sanctions Include Administrative and Criminal Penalties
According to the Bali Provincial Tourism Office, tourism businesses found operating without valid permits could face multiple sanctions. These include the revocation of business rights, administrative penalties, and potential legal action. The authorities reiterated that all operators are required to comply with licensing regulations to ensure fair competition and lawful business practices.
I Gusti Ngurah Adnyana, a representative from BVRMA, acknowledged that some of the association’s members had been subject to recent inspections. Currently, the association consists of 70 member companies managing around 3,000 villas across Bali. On average, each company oversees between 400 and 500 villa properties.
Illegal Operations Create Economic and Social Challenges
Authorities stated that unlicensed villa operations not only violate existing tourism regulations but also disrupt Bali’s regional economy. Illegal competition may undermine legitimate businesses and affect local revenue collection. Furthermore, officials noted that unregulated tourism activities could lead to social tensions with local residents and, in some cases, problematic behavior among visitors staying at such properties.
The government continues to emphasize the importance of legal compliance among tourism stakeholders. Licensed businesses contribute to regional tax income, maintain tourism standards, and uphold community harmony, while unlicensed operations are viewed as detrimental to the island’s long-term tourism sustainability.
Thousands of Villas Operate Across Bali
Recent data shows that Bali currently has 12,227 registered accommodation units, with the highest concentration located in Badung Regency. Of these, villas account for approximately 5,272 units. The Tourism Office continues to monitor and verify the status of these properties to ensure full compliance with provincial regulations.
Officials have not disclosed the total number of villas suspected of operating illegally, but they confirmed that inspections and verification processes are ongoing. Businesses found violating regulations will be subject to the sanctions outlined by the provincial government.
Ongoing Monitoring and Enforcement
The Bali Provincial Tourism Office affirmed that it will continue working with relevant agencies and industry associations to ensure compliance across all tourism sectors. Further coordination with local governments is expected to strengthen monitoring mechanisms and prevent new cases of unlicensed operations.
Authorities have urged villa owners and operators to review their licensing status and fulfill all administrative requirements. Those who fail to do so risk losing their property rights and facing additional legal consequences as stipulated by existing tourism laws.
