Newly re-elected Bali Governor Wayan Koster has determined to desert the proposed moratorium on constructing new lodges and villas. As an alternative, he has pledged stricter laws to handle the expansion of tourism lodging.
“There isn’t any want for a moratorium. What’s wanted is stricter management,” Koster stated at a latest press convention in Seminyak.
The proposed ban had been rooted in considerations about overtourism and environmental degradation. Bali’s speedy growth has reworked areas like Cemagi, North Kuta, the place rice fields have given technique to buildings.
Former officers had proposed a short lived halt on new building in key resort areas equivalent to Canggu, Seminyak, and Nusa Dua to protect Bali’s landscapes and assess its carrying capability for sustainable tourism. The moratorium had assist from the Bali Tourism Board, emphasizing the necessity to regulate tourism infrastructure and shield the setting.
Ban Various: Stricter Laws
The governor dismissed the moratorium as pointless, asserting that stricter enforcement of present laws can obtain the identical objectives.
Koster has but to element the precise actions, however hinted at a brand new Provincial Decree to control property possession, significantly by a international nationwide.
“Sure, I’ll proceed to allow the constructing of villas and lodges. However the guidelines will likely be strict,” Koster added.
Nonetheless, Bali’s building increase has usually been accompanied by weak enforcement of spatial planning legal guidelines, resulting in unchecked constructing in ecologically delicate areas.
Gary Bowerman, a tourism and shopper analyst centered on Asia, famous that President Prabowo’s assist for a second Bali airport within the north and growth of tourism and way of life sectors reshaped the panorama. “Main new funding will likely be wanted to assist these goals, which was not deemed potential with any type of moratorium in place,” he stated.
Bowerman additionally stated that the moratorium proposal was very restricted in scope, and by no means had a lot probability of turning into actuality.
Bali’s Overtourism Disaster
Bali’s tourism numbers have surged. In 2024, the island had 6.3 million worldwide vacationers, surpassing pre-pandemic ranges and its goal of 5.5 million guests. Prime supply markets included Australia, India, and China, in accordance with information from the Bali Provincial Tourism Workplace. Bali goals for six.5 million international arrivals in 2025.
Regardless of the increase, Deputy Governor Nyoman Giri has stated lodge occupancy charges stay low, with many lodging struggling to draw company even throughout excessive seasons.
Nonetheless, Douglas Louden, senior asset supervisor at International Asset Options, stated, “We aren’t positive what information is being reviewed right here, our analysis indicated 12 months spherical occupancies had been in extra of 70% and that the vacation spot was performing fairly effectively regardless of the opening of recent stock.”
Louden additionally famous that the island’s infrastructure is struggling to maintain up with the inflow of vacationers, and whereas plans are underneath manner for a brand new airport and mass transit system, it will take time to develop and a moratorium on new initiatives would assist operators to drive charges and enhance yield.
An earlier Skift report famous that the speed of lodge openings considerably decreased from 2020 to 2023, averaging round 600 keys per 12 months, in comparison with the two,600 keys yearly between 2009 and 2019. The report had additionally famous that lodge provide within the island is about to develop by practically 1,800 rooms in 2024, however the tempo is predicted to gradual.
Bali’s challenges have drawn world consideration. The island topped Fodor’s listing of locations to rethink visiting in 2025 as a result of overtourism.
Bowerman identified that future tourism funding will doubtless shift to much less developed elements of the island. “Journey and tourism funding will doubtless give attention to different areas, not the over-developed and congested south,” he stated.
Louden agreed that Bali is vulnerable to overtourism, particularly at key strain factors across the Kuta and the airport. “Correct city planning is crucial,” he stated.
Mitigating Overtourism: A Broader Technique
The Indonesian authorities is working to alleviate overtourism. A brand new initiative promotes lesser-visited areas like North and West Bali, encouraging exploration past the south. Locations equivalent to Pemuteran, Ijen Crater Nationwide Park, and Bromo Volcano are being highlighted.
Pre-Covid, Indonesia launched the formidable “Ten New Bali Venture,” later adjusted to the extra practical “5 Tremendous Precedence Locations” program. Bali’s tourism tax levy, launched throughout Koster’s first time period, fees worldwide guests IDR 150,000 (round $10) to fund cultural preservation and environmental safety. Nonetheless, implementation has been inconsistent, with solely 40% of vacationers reportedly paying the tax.
“Progress and diversification would be the focus over the following decade to encourage journey flows throughout islands and international locations, not simply in closely concentrated hotspots. Will this succeed? That’s one other query totally!” Bowerman concluded.
