Development moratorium coming to Bali

BALI, Indonesia  — To better manage overtourism, overdevelopment and critical agricultural areas in Bali, Indonesia has decided to set a moratorium on the construction of hotels, villas and nightclubs in the four busiest areas of the island, a senior ministry official said. There were 541 hotels in Bali last year, up from 507 in 2019.

While reports have suggested a two-year moratorium, the exact timeline was still being settled and could stretch up to 10 years, according to reports.

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

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.

Pierre Marechal, vice president, Strategic Advisory and Asset Management for JLL Hotels & Hospitality Group, Singapore, told Hotel Investment Today that the pause would allow the province to upgrade and plan more effectively essential services such as water supply and waste collection, which would help preserve Bali’s cultural and environmental heritage while accommodating its thriving tourism industry.

“The proposed moratorium is an interesting step to address the challenges of overdevelopment and infrastructure strain in South Bali,” Marechal said. “By reassessing zoning and diversifying tourism across the island, Bali can ensure that future growth is sustainable and inclusive.”

Foreign arrivals in Bali have surged post-pandemic as has the number of expats moving to the island, which has impacted job availability, and increased crime and misbehavior.

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. Australians dominated arrival numbers, followed by East Indians and Chinese. Travelers from the United Kingdom, the United States, South Korea, Malaysia, and Singapore also made up a significant share.