Indonesia Imposes Moratorium on New Hotel Construction in Bali to Combat Overdevelopment
Indonesia has announced a suspension on the construction of new hotels in specific areas of Bali due to rising concerns over overdevelopment in this iconic tourist hotspot. As tourism in Bali rebounds following the Covid pandemic, local officials are increasingly worried about the strain that visitors are placing on infrastructure, the environment, and cultural heritage.
Hermin Esti, a senior official from the Coordinating Ministry of Maritime and Investment Affairs, confirmed to Reuters that the government has instituted a moratorium on new hotels, villas, and nightclubs, though the duration of this moratorium remains unspecified. Senior Minister Luhut Pandjaitan suggested it could last up to ten years. As of last year, Bali had 541 hotels, an increase from 507 in 2019.
The island has seen a surge in foreign tourists, with 2.9 million arrivals recorded in the first half of this year, leading to challenges such as traffic congestion, construction disruptions, and growing discontent among locals regarding the behavior of some tourists. The island has also become a favored destination for digital nomads, many of whom stay for extended periods.
Incidents of tourist misconduct, including inappropriate behavior at sacred sites and disruptive acts for social media, have sparked outrage among residents. Currently, around 200,000 foreigners are estimated to live in Bali, raising concerns about crime and competition for jobs.
In response, the government is conducting a thorough audit of the tourism sector to better align economic growth with environmental sustainability and cultural preservation. A tourism tax of 150,000 rupiah ($9) was implemented in February to support cultural protection efforts, and plans for a rail link connecting the airport to popular tourist destinations aim to ease road congestion.
Tourism Minister Sandiaga Uno recently highlighted that South Bali is nearing the brink of over-tourism, emphasizing the need to avoid scenarios like Barcelona, where tourists have become unwelcome among locals.
