Bali to impose restrictions on new hotel construction to address overdevelopment concerns

Indonesia has agreed to a moratorium on the construction of hotels, villas and nightclubs in some areas of the tourist island of Bali as it grapples with overexploitation of land, a senior ministry official said Monday.

The moratorium is part of the government’s proposal to reform tourism in Bali, one of Indonesia’s top attractions, in an attempt to improve quality and employment while preserving the island’s indigenous culture.

Hermin Esti, a senior official at the Coordinating Ministry for Maritime Affairs and Investment, told Reuters the government had agreed to put in place the moratorium, although the exact timeline was still under discussion.

On Saturday, Bali’s acting governor, Sang Made Mahendra Jaya, said he had suggested to the central government that it impose a moratorium on four of Bali’s busiest areas, targeting excessive development for commercial purposes such as hotels, villas and beach clubs.

The governor’s office and Indonesia’s tourism ministry did not immediately respond to requests for comment on Monday.

The moratorium could be extended up to 10 years, senior minister Luhut Pandjaitan was quoted as saying by the Detik news website on Sunday. Luhut had previously said that some 200,000 foreigners now live in Bali, contributing to problems such as crime, overdevelopment and competition for jobs.

Foreign arrivals to Bali have surged since it reopened to tourism following the COVID-19 pandemic. Videos of tourists behaving badly often go viral, angering residents and prompting harsh responses from social media users in Indonesia.

Government figures show that 2.9 million foreign visitors arrived via Bali airport in the first half of the year, accounting for 65% of total foreign arrivals to Indonesia by air. There were 541 hotels in Bali last year, up from 507 in 2019.

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