Bali Sees 5,000 Tourism Businesses Apply for Permits as Governor Says Licensed Hotels Fully Booked
Bali's provincial government reports that around 5,000 villa and tourism businesses have applied for operating permits between 2025 and 2026, as part of an ongoing crackdown on unlicensed establishments. Governor Wayan Koster said licensed hotels are now seeing occupancy rates of 80-90%, while unlicensed budget accommodations are struggling to attract guests. Hotel and restaurant tax revenue has also risen by more than Rp 300 billion year-on-year.
According to NusaBali, the Bali Provincial Government's ongoing efforts to regulate the legal status of tourism businesses on the island appear to be yielding results, with a growing number of previously unlicensed accommodation and tourism businesses now initiating the registration and permit process.
Bali Governor Wayan Koster revealed during the 51st Plenary Session of the Bali Provincial Regional House of Representatives (DPRD) on Monday, September 21, 2026, that approximately 5,000 villa and tourism business units applied for permits between 2025 and 2026. "Those that were previously unlicensed are now obtaining permits," Koster stated.
The Governor said this regulatory push is also positively affecting occupancy at already-licensed hotels, which are reportedly seeing daily occupancy rates of 80 to 90 percent. "The impact now is that licensed hotels are fully booked; they are at 80 to 90 percent capacity every day," he said.
Koster noted a disparity in demand between licensed and unlicensed accommodations, with star-rated hotels attracting strong bookings while unlicensed "Melati" (budget, non-star-rated) class establishments and below are struggling to draw guests due to their lack of permits.
The Governor also linked the business restructuring to a rise in hotel and restaurant tax revenue, which increased by more than Rp 300 billion year-on-year comparing the same periods in 2025 and 2026.
While welcoming investment, Koster emphasized that all tourism businesses must comply with applicable laws and spatial planning regulations. He said enforcement is being carried out "firmly, gradually, and prudently" to avoid counterproductive effects on Bali's economy.
Things to Consider
When booking villas or accommodations in Bali, verify that the property holds proper business permits (look for star ratings or licensing information), as unlicensed establishments may face operational disruptions or sudden closures. Check reviews and registration status on booking platforms, and consider booking directly through official channels for licensed properties. Given that licensed hotels are reporting 80-90% occupancy, booking well in advance is advisable, especially during peak travel periods.
Source: Bali Discovery | News on Bali Tourism & Life Since 1998