Indonesia will halt the construction of new hotels in certain areas of Bali due to concerns about overdevelopment in the popular tourist destination.

Tourism in Bali has rebounded since the Covid pandemic, but there are increasing worries about the impact of visitors on local infrastructure, the environment, and cultural heritage.

Hermin Esti, a senior official at the Coordinating Ministry of Maritime and Investment Affairs, said as quoted by Reuters that the government has decided to impose a moratorium on new hotels, villas, and nightclubs.

The duration of this moratorium is uncertain, with Senior Minister Luhut Pandjaitan suggesting it could last up to a decade, according to news site Detik.

Last year, Bali had 541 hotels, an increase from 507 in 2019.

Following the end of pandemic restrictions, foreign arrivals in Bali have surged, with 2.9 million international visitors passing through Bali airport in the first half of this year, as reported by Indonesia’s statistics bureau. This influx has led to problems such as traffic congestion, increased construction, and frustration with unruly tourists. The island has become especially popular among digital nomads who tend to stay for extended periods.

Rising concerns over tourists' misbehavior

Videos of foreigners behaving inappropriately and performing stunts for social media—such as posing nude at sacred sites, interrupting a temple dance, and making inappropriate, lewd gestures on motorbikes—have frequently gone viral, causing outrage among locals and Indonesians.

According to Luhut, approximately 200,000 foreigners currently reside in Bali, which has raised concerns about crime and increased job competition.

In response, the government is conducting an audit to reform tourism on the island, aiming to balance economic benefits with the preservation of the local environment and culture. A tourism tax of 150,000 rupiah ($9) was introduced in February for foreign visitors to help protect Bali’s cultural heritage. Authorities are also planning to build a rail link between the airport and popular tourist spots to ease road congestion.

Tourism Minister Sandiaga Uno cautioned last month that South Bali is nearing a state of 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, according to the national news agency Antara.