As one of Southeast Asia’s most beloved destinations, Bali’s tourism continues to see exponential growth. In 2024, Bali welcomed approximately 6.3 million international tourists and over 9 million domestic visitors, bringing the total number of arrivals to more than 15 million. To address mounting pressures on infrastructure, environment, and community well-being, Indonesia is ramping up efforts to future-proof its tourism economy through a sustainable lens.

At the forefront of this initiative is a joint strategy between the Ministry of Tourism and the Bali Provincial Government. Aiming to regulate development and curb the proliferation of unlicensed villas in Bali, authorities are focusing on three pillars: legal compliance, spatial zoning, and infrastructure readiness. The goal is clear, to make sure that Bali’s tourism boom does not come at the cost of its cultural, environmental, and social integrity.

Key Challenges Facing Bali’s Tourism & Real Estate Sector

Despite its popularity, Bali faces significant hurdles. The unchecked rise of illegal or unlicensed villas, which operate without building permits, tax registration, or hospitality licenses, has strained local communities and limited the effectiveness of tourism tax collection.

Further complicating matters, infrastructure has lagged behind in rapidly urbanizing regions like Canggu and Uluwatu, where demand outpaces regulatory oversight. Without clear spatial planning and proper zoning, developments risk disrupting water resources, traffic flows, and sacred lands.

For investors in Bali property, these issues are front and centre. The government’s recent clampdowns and inspections signal a new era of accountability. Properties that do not meet legal standards face operational shutdowns or fines, presenting clear risks to unvetted investment.

Case Spotlight: How Licensing Affects Profitability

Consider two villas in Bali’s southern corridor: both designed for tourism, both marketed on short-stay platforms. The first is fully licensed with PBG (Building Approval), SLF (Certificate of Feasibility), TDUP (Tourism Business License), and is tax compliant. It partners with a professional management company and maintains 85% occupancy with premium nightly rates.

The second operates without permits and faces intermittent delisting from OTAs, lower occupancy, and community pushback. During recent regulatory sweeps, it was forced to cease operations, impacting both revenue and asset value.

For those looking to invest in Bali, the difference is beyond legal repercussions, it’s measurable in returns, guest trust, and long-term asset resilience.

What the 100-Year Tourism Development Plan Means for Investors

In response to these structural gaps, the Ministry of Tourism has unveiled a 100-Year Tourism Development Plan for Bali. This long-term roadmap aims to ensure that growth in Bali tourism is balanced, strategic, and equitable. The plan includes:

Streamlined licensing and digital reporting systems for villas and hospitality businesses
Designated tourism zones based on environmental and cultural impact studies
Prioritization of sustainable tourism practices through infrastructure grants and development incentives
Active partnerships between local governments and developers to ensure zoning compliance and long-term investment value

For Bali real estate investors, the message is clear: only legal, environmentally conscious, and infrastructure-ready projects will thrive in the new era. Investing in fully licensed Bali villas that are designed for tourism (not just resale) is now more essential than ever.

How Real Estate Players Can Adapt to the New Landscape

Navigating this evolving regulatory environment requires more than market intuition, it demands active legal guidance, transparent project documentation, and operational readiness. This shift is transforming how hospitality properties are developed and managed. Key trends include:

Strong demand for guest-ready villas with hotel-standard amenities and legal standing
Increased interest in property management partnerships to ensure licensing, maintenance, and marketing compliance
Preference for integrated hospitality models that combine investment returns with professional oversight

Investors who adopt a future-oriented approach will find ample opportunity. As sustainable tourism in Bali becomes a national priority, aligning with regulatory frameworks and market expectations positions projects for resilience and long-term profitability.

Build with Confidence: Work with Pertama Property

At the intersection of Bali tourism and high-performance real estate is Pertama Property, a trusted partner for investors seeking sustainable, fully managed villa developments. From land acquisition and due diligence to design, licensing, and operations, Pertama ensures every project meets regulatory standards and market demand.

Through Pertama Management, investors also gain access to a full-service hospitality platform:

Daily villa operations
Staff recruitment and training
Revenue management and guest services
Licensing and tax compliance

This turnkey approach enables investors to focus on returns while contributing to Bali’s tourism ecosystem responsibly.

Bali’s tourism future is being written now. It favors properties that are compliant, curated, and community-aware. If you're looking to position your investment for long-term success beyond seasonal returns, Pertama Property can help you lead, not lag, in this new era.

Build a property investment that aligns with Indonesia’s long-term tourism vision. Contact Pertama Property or learn more about Pertama Management today.

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