Is this your usual routine? Open Airbnb, find a stunning Bali villa with a pool at half the price of a hotel, and book it without hesitation. Then happily count down the days until departure…
Wait a minute. In 2026, this habit could cost you your deposit, or worse - you might arrive only to find your booked accommodation is uninhabitable.
What’s Happening with Airbnb in Bali?
It all stems from the Bali Governor’s strong dissatisfaction with Airbnb. The Bali government estimates there are over 2,000 unlicensed short-term rentals operating on platforms like Airbnb. These operators aren’t paying the 10% hotel tax, lack proper licenses, and some are even built on agricultural protected zones or illegal land. For licensed hotels, this is unfair competition. In frustration, Governor Wayan Koster even proposed banning Airbnb entirely in Bali - though the Indonesian central government ultimately rejected a complete ban. Instead, Bali has implemented stricter regulations: By March 31st, all short-term rental listings on online platforms must complete legal registration with the Indonesian government, or face mandatory removal. What does this mean for travelers? Honestly, the risk is greater than you might think. It’s estimated that over half of current Bali Airbnb listings don’t meet regulations. After the March deadline, mass removals are likely. The problem is: no one can guarantee your current booking will survive this deadline.
Possible Scenarios:
- A few days before your trip, the host receives a removal notice, forcing cancellation of your booking
- You arrive in Bali only to find your villa sealed with an official “disegel (sealed)” notice
- Unlicensed properties lack insurance coverage, leaving you without recourse if issues arise
- Some illegal constructions are even built on protected green zones - these properties aren’t just non-compliant, they’re outright illegal and unsafe for habitation In July 2025, the Governor personally oversaw the demolition of 48 illegal structures at Bingin Beach. This is serious business.
I’m not saying you should never book Airbnb, but you need to be extra cautious right now I’m not suggesting you abandon Airbnb altogether. Bali’s villa experience is truly irreplaceable - that feeling of swimming in an infinity pool while watching the sunrise over rice fields is what hooks many visitors.
But during this transitional period between old and new regulations, I recommend taking these steps before booking:
1. Ask the host directly for the license number Legitimate properties will have an NIB (Business Identification Number) or Pondok Wisata registration. If you can’t get this information? Consider looking elsewhere. 2. Choose properties with ‘full cancellation protection’ In case you’re forced to cancel, at least you’ll get a full refund. Avoid ‘non-refundable’ options. 3. Purchase travel insurance that covers accommodation cancellations Many travel insurance policies now include coverage for ‘last-minute accommodation cancellations,’ making it especially worthwhile to add this during this period. 4. Consider staying at reputable, legally registered hotels or resorts If your itinerary is tight or you’re traveling with elderly family members or children, opting for established hotels can save you stress, as you won’t have to worry about your booking disappearing right before your trip.
Our Recommendations
The transition period from late March to June is the most chaotic time for Bali’s Airbnb market. If your Bali trip falls within this timeframe, I strongly advise exercising caution. This isn’t to discourage you from going, but to ensure you travel with peace of mind. This island deserves to be enjoyed in your best state—not dealing with booking disasters the moment you land.
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