Bali considering a ban on new hotels amid overtourism struggles

Indonesia has agreed to set a moratorium on the construction of hotels, villas and nightclubs in some areas on the tourist resort island of Bali, as it grapples with the over-development of land, a senior ministry official said on September 9.

The moratorium is part of the government’s bid to reform tourism on Bali, one of Indonesia’s main attractions, to try to boost quality and jobs while preserving the island’s indigenous culture.

Hermin Esti, a senior official at the Coordinating Ministry of Maritime and Investment Affairs, told Reuters the government had agreed to set the moratorium, although the exact timeline was still being discussed.

On Saturday, Bali’s interim governor Sang Made Mahendra Jaya said he suggested the moratorium in four of Bali’s busy areas to the central government, taking aim at over-development for commercial purposes, such as hotels, villas and beach clubs.

The governor’s office and Indonesia’s tourism ministry did not immediately respond to requests for comment on Monday.

The moratorium could stretch up to 10 years, senior minister Luhut Pandjaitan was quoted by news website Detik as saying on September 8.

Luhut has previously said about 200,000 foreigners now live in Bali, contributing to problems such as crime, over-development and competition for jobs.

Foreign arrivals in Bali have surged since it re-opened for tourism after the COVID-19 pandemic.  angering residents and sparking harsh responses from social media users in Indonesia.

Government figures show 2.9 million foreign visitors arrived through Bali airport in the first half of the year, making up 65% of total foreign arrivals in Indonesia by air.

There were 541 hotels in Bali last year, the figures show, up from 507 in 2019.