Indonesia puts moratorium on new Bali hotels amid overtourism fears

Indonesia will suspend the construction of new hotels in some areas of Bali, amid fears about overdevelopment of one of its most famous tourist destinations.
Tourism has rebounded in Bali after the Covid pandemic, but there is growing concern about the strain visitors are placing on local infrastructure, the environment, and culture.
Hermin Esti, a senior official at the Coordinating Ministry of Maritime and Investment Affairs, told Reuters the government had agreed to set a moratorium on the construction of new hotels, villas and nightclubs.
The timeframe for the moratorium is unclear. Senior minister Luhut Pandjaitan was quoted by news website Detik as saying it could remain in place for up to a decade. There were 541 hotels in Bali last year, up from 507 in 2019.
Foreign arrivals in Bali have surged following the lifting of pandemic restrictions, with 2.9 million foreign visitors entering the island through Bali airport in the first half of this year, according to Indonesia’s statistics bureau. However, this has also brought problems, including increased traffic, construction and anger at disrespectful tourists. The island has become particularly popular among digital nomads who often stay for longer periods.
Videos of foreigners misbehaving and carrying out stunts for social media – posing naked at sacred sites, stripping off and gatecrashing a temple dance performance, and flashing on a motorbike – have frequently gone viral, provoking anger among local residents and Indonesians.
About 200,000 foreigners reportedly live in Bali, according to Luhut, which authorities say has also led to concerns about crime and increased competition for jobs.
The government is conducting an audit to reform tourism on the island, as part of broader efforts to strike a balance between the economy and the local environment and culture.
In February, a tourism tax of 150,000 rupiah ($9) was introduced for foreign tourists entering Bali to help protect its culture. The island’s authorities hope to build a rail link connecting the airport to popular tourist destinations to relieve its heavily congested roads.
Tourism minister Sandiaga Uno warned last month that South Bali was close to over-tourism.
“A 10% increase could push us into that territory. We must avoid a situation like Barcelona, where tourists became public enemies,” he said in comments reported by national news agency Antara.