A major shift is coming to Bali’s property landscape. Starting in 2026, six of the island’s regencies have officially agreed to halt the development of new hotels and restaurants. The regencies: Tabanan, Jembrana, Buleleng, Bangli, Karangasem, and Klungkung, will no longer issue permits for tourism accommodation development on productive land, a move that stems from concerns over land exploitation and a drive toward more equitable infrastructure growth across the island. This decision follows proposals made in 2024 and is now backed by the Bali Provincial Government under Governor Wayan Koster’s leadership.

A New Era for Bali’s Tourism and Property Development

The policy is part of a broader strategy to redistribute Hotel and Restaurant Tax (PHR) revenue more fairly across the island. Currently, most of Bali’s tourism tax is generated in the central south, specifically Denpasar, Badung, and Gianyar, which includes tourism powerhouses like Seminyak, Ubud, Uluwatu, and Canggu. Starting in 2026, 10% of the PHR collected from the aforementioned area, estimated to reach IDR 700 billion annually, will be reallocated to the six participating regencies. These funds will go directly into Bali infrastructure and facilities upgrades, including urgent road repairs. An additional portion will be distributed through Special Financial Assistance (BKK), with disbursement calculated based on population, land area, and infrastructure damage levels.

Governor Koster made clear that the intent is to create a more equitable and sustainable tourism model. While Denpasar, Badung, and Gianyar will continue as the centre of hotel and restaurant operations, the outer regencies will focus on tourism destination quality, enhancing cultural, ecological, and experiential offerings without adding more large-scale accommodation projects.

What This Means for Property Investors in Bali

From a property investment standpoint, this development adds further fuel to the tightening supply dynamic in Bali’s tourism zones. While Bali tourism continues to grow, over 3.28 million international tourists visited in the first half of 2025 alone, restrictions on new development in emerging regions mean existing inventory will hold even more long-term value. Indonesia’s tourism numbers also exceeded expectations in the same six-month period, with over 7.15 million international arrivals, more than half of the government's annual target. As Bali tourism 2025 numbers climb, the island’s tourism crown jewel status remains undisputed.

For property investors, these evolving regulations underline the value of entering Bali’s most established zones now, before stricter supply constraints take effect elsewhere. The shift is likely to boost demand, and therefore returns, for existing boutique villas, serviced accommodations, and hospitality assets in areas that continue to permit construction.

In this context, investors are looking for partners who already have a presence in high-performing areas and a proven ability to navigate Bali’s regulatory landscape. Pertama Property is one such property development company that aligns with the direction the island is heading. With projects already underway in strategic zones and a focus on long-term value creation, Pertama’s model supports both investor confidence and operational reliability. As land scarcity and policy changes reshape Bali’s future, investing with a developer that prioritizes legal compliance, delivery certainty, and integrated operations becomes essential.

Bali’s tourism evolution is happening in real-time, and its property market is following suit. With fewer new hotels on the horizon and infrastructure set to rise in parallel, investors who understand the island’s shifting dynamics are positioning themselves now, before supply contracts further and demand drives up prices. To explore opportunities in line with Bali’s changing landscape, visit Pertama Property today.

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