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Illegal Villas are Big Business in Bali’s Gianyar Regency

Estimated 75% of Commercial Villas in Bali's Gianyar Regency are Operating Illegally.

(8/17/2009) A special committee of the Regional House of Representatives from the regency of Gianyar in Bali has estimated that 60% of that district's potential hotel and restaurant tax income is lost via illegal commercial villas who side-step their tax obligations.

Quoted in beritabali.com, the Gianyar Head of the agency charged with permits, Nyoman Sukanada, said that if these report are true, he hoped the villa owners would soon take the steps necessary to register their villas as businesses. Describing what may prove to be a step-by-step process, Sukanada suggested that some villas lack any kind of license meaning that owners may have to first obtain simple residential permits before moving on to commercial licensing.

In order to hasten the registration of villas in Gianyar, Sukanada called on the Gianyar Tourism office to submit data on commercial villas in the district so that the owners could be required to obtain villa (pondok wisata) operating licenses.

Of the estimated 581 commercial villas operating in Gianyar, only 143 hold valid operating licenses. According to beritabali.com many of the unlicensed villas are allowed to continue their illegal operations in order to provide "extra” income to enforcement officials.

In response, the head of the Public Relations Section of the Gianyar Regency, A.A. Surya Raditya, told the press that if any officials is involved in such "playing around” they are liable to strong sanctions under the law.