Bali looking to suspend construction of new hotels in southern region as overdevelopment, overtourism bite

Bali wants to temporarily halt the construction of new hotels and villas in its southern region, as the Indonesian resort island works to curb overdevelopment and preserve agricultural land amid an influx of tourism.

The planned moratorium on such developments will target the Sarbagita region, encompassing Denpasar, Badung, Gianyar, and Tabanan, according to the island’s acting governor Sang Made Mahendra Jaya.

The Bali government has formally requested the central government in Jakarta to enforce this measure.

“We have sent a letter to the ministry requesting a moratorium on new hotel and villa developments in Sarbagita,” Mr Mahendra told local news site Kumparan on Wednesday (Sep 4). He did not specify how long he wants the suspension to last.

Tourism and Creative Economy Minister Sandiaga Uno has confirmed the proposal will be reviewed by his ministry and discussed at an upcoming cabinet meeting with President Joko Widodo, as reported by Indonesian media.

Mr Sandiaga emphasised that the moratorium has the support of academics and tourism stakeholders. 

“We hope to temporarily halt construction in south Bali to prevent overtourism,” he said on Tuesday (Sep 3).

The minister indicated that as part of the measure, the central government might solely manage future building permits in Bali, with local authorities playing a consultative role.

“The consultation process will include local leaders and community stakeholders. Given the current emergency situation, building permits in South Bali will be centrally regulated,” Mr Sandiaga explained.

Bali has seen a rebound in tourist arrivals since the COVID-19 pandemic decimated the sector. In 2021, only 51 foreign tourists visited the island, compared with 6.3 million in 2019.

Last year, the tally was close to 5.3 million. And numbers are looking rosy this year as well. According to data from Ngurah Rai airport immigration, Bali welcomed 3.89 million foreign tourists from January to July, up from 2.9 million during the same period in 2023. 

Australians dominated arrival numbers with 877,329 visitors, followed by 328,767 from India and 278,329 from China. Travellers from countries like the United Kingdom, the United States, South Korea, Malaysia, and Singapore also made up a significant share.

As new developments sprout up to cash in on the tourist dollar, the trend has also raised concerns locally.

TURNING RICE FIELDS TO VILLAS

One is shrinking rice fields and the potential threat to Bali’s food security as a growing number are transformed into villas. The affected districts, mainly Gianyar and Tabanan, are critical agricultural areas.

The surge in villa development is driven by high demand from affluent individuals, both local and international, as well as the availability of golden visas for foreigners. 

Villa prices in popular areas like Nusa Dua, Jimbaran, Sanur, and Ubud range from 2.2 billion to 5 billion rupiah (US$143,000 to US$325,000), while sizes vary from 100 to 500 square metres.