In a bid to curb over-development and protect its iconic tourism and cultural heritage, Indonesia has implemented a moratorium on new hotel, villa, and nightclub constructions in specific areas of Bali. The announcement, made by a senior ministry official on September 9, signals a decisive step towards reforming Bali’s tourism sector and ensuring its sustainability.
The moratorium, proposed by Bali’s interim governor, Sang Made Mahendra Jaya, targets four highly frequented areas on the island. While the specific duration of the moratorium is still under discussion, Senior Minister Luhut Pandjaitan has indicated it could last for up to 10 years. This decision reflects concerns about the rapid influx of foreign visitors, currently estimated at 200,000, and the potential negative consequences of their presence, including over-development, crime, and competition for local jobs.
Bali, a global tourist hotspot, experienced a significant surge in foreign visitors following the reopening of tourism after the COVID-19 pandemic. In the first half of 2024, the island welcomed 2.9 million foreign arrivals, accounting for 65% of Indonesia’s total international air visitors. The island’s hotel industry has also witnessed growth, with a total of 541 hotels currently operating, a slight increase compared to 507 in 2019.
The moratorium is expected to generate significant debate and discussion. While its aim is to preserve Bali’s natural beauty and cultural identity, some stakeholders may raise concerns about its potential impact on the tourism industry and economic growth. The coming months will likely see further discussions and negotiations as the Indonesian government strives to balance its commitment to sustainable tourism with the interests of all stakeholders involved.
