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There Ought to be (Another) Law

Bali Villa Association Wants Provincial Bylaw to Close Illegal Villas

(2/28/2014) The Bali Daily (The Jakarta Post) is reporting that the Bali Village Association (BVA) is calling on the provincial government of Bali to issue new bylaws that will bring illegal villas being rented on a commercial basis into line with the law.

The chairman of BVA, Jro Mangku Wayan Suteja, emphasized the need for stiffer regulation to halt the operation of illegal unlicensed villas in the form of private homes offered as short-term tourist accommodation.

Regulations passed in 2009 required “legal” villas to offer a minimum of five rooms, hold all necessary business licenses, offer on-site property management, 24-hourse service and security protection.

Suteja said: “The problem is that there are many people who own a house with some facilities, like a swimming pool, rent the house and claim that it is a ‘villa’, but it does not fulfill the requirements. This is absolutely a violation.”

On a national level, the Ministry of Tourism and the Creative Economy is considering legislation to standardize the operation of commercial villas.
The BVA is calling on the provincial administration of Bali to immediately issue new by laws and not wait for the national government to formulate rules in the face of Bali’s booming oversupply of accommodation.

The goal of the BVA is to put private residences operating as commercial villas out of business in Bali.

“People who have no licenses to operate their properties as commercial villas should register to obtain the licenses. If they refuse to comply, then the places should be closed,” added Suteja.

Among the complaints leveled against illegal villas in Bali by BVA are failures to pay taxes and meet security standards to guarantee the safety of guests.

BVA estimates that more than 10% of the some 1,200 villas operating in Bali are illegal.