The Bali villa industry is at a crossroads, facing both immense opportunity and significant challenges as we move into 2025. For investors, property owners, and tourism stakeholders, understanding the importance of sustainable investment and quality tourism is vital. I’m Jason, a Journalist at Bukit Vista and in this article, we’ll explore how the Bali villa industry is evolving, why respecting local regulations and culture is essential, and what practical steps can ensure long-term success for everyone involved from the Podcast between Wayana and Kadek Adnyana from BVRMA (Bali Villa Rental and Management Association).
The Importance of Regulation and Community in the Bali Villa Industry
One of the most pressing issues in the Bali villa industry is the lack of adherence to local regulations and licensing. Many villas and management companies operate without proper registration, leading to price wars, declining quality, and a negative impact on Bali’s reputation as a premium destination. When properties are not managed according to standards, the entire sector suffers, as lower prices often come at the cost of service, amenities, and guest experience.
This situation highlights the need for stronger community and industry collaboration. Associations like the Bali Villa Rental and Management Association play a crucial role in connecting property owners, managers, vendors, and government stakeholders. By gathering regularly, these groups share knowledge on marketing, amenities, and operational best practices, ensuring everyone in the Bali villa industry can learn how to manage properties more effectively and sustainably. This collective approach not only raises industry standards but also helps address broader issues such as waste management, traffic, and safety—key factors for maintaining quality tourism in Bali.
Sustainable Investment: Respecting Bali’s Rules and Culture
For anyone considering sustainable investment in the Bali villa industry, respecting local rules and Balinese culture is non-negotiable. Investors must do their homework, understanding where development is permitted and where it is not—especially avoiding green zones that are protected for environmental reasons. The Bali villa industry depends on harmony between humans, nature, and spirituality, a core value known locally as “Tri Hita Karana.” This principle guides how properties should be developed, managed, and integrated into the community.
Sustainable investment also means working with experienced villa management companies and associations that can provide guidance on regulations and best practices. Many investors, both local and international, are unaware of the specific requirements for operating in Bali. This lack of knowledge can lead to unintentional violations that harm both the investor and the broader industry. By seeking expert advice and engaging with established organizations, investors can ensure their projects contribute positively to the Bali villa industry and support quality tourism for years to come.
Building a Future of Quality Tourism in the Bali Villa Industry
The future of the Bali villa industry depends on a collective commitment to quality tourism and responsible investment. As tourism preferences shift and new challenges arise, it is crucial for all stakeholders to work together—government, associations, property owners, and investors—to create real, actionable solutions. This means not only talking about problems but taking direct action to address them, whether it’s improving waste management, enhancing safety, or ensuring fair competition through proper licensing.
By focusing on maintaining the unique cultural and environmental assets that make Bali special, the Bali villa industry can continue to thrive. Investors who respect local customs, follow regulations, and prioritize sustainability will help ensure that Bali remains a world-class destination. In turn, this approach will yield long-term rewards, creating a cycle where quality tourism supports the community, the environment, and the economic health of the island.
🗒️ Read the transcript
Part 1: The Importance of Respecting Balinese Culture and Rules
Wayana: If this has been done by the inspector—respecting our culture, respecting our rule here in Bali—then everything will be going better in the future and not like now.
Kadek Adnyana: Yeah, Head association. What is the single most important insight shared today that every property owner should pay attention to?
Wayana: So actually, what we are doing today here is gathering—yeah, gathering between all the businesses, especially connected to the villa business. For example, in the villa business, we need the marketing side, like maybe how to improve the OTAs, how to improve the knowledge of making the most quality in a villa. Also, we are connecting with those vendors, with the amenities, the facilities—so all together meet in this gathering. Especially also meeting with villa owners—maybe the villa owners need to know how to manage the villa, how to find a better company, how they can manage their own villa. Many, many things we can discuss here; we can meet each other based on what they need.
Part 2: Challenges in the Bali Villa Industry
Kadek Adnyana: How do you see the Bali villa industry evolving over the next two to three years? Will regulation, pricing wars, or shifting guest preferences be bigger forces—positive or negative?
Wayana: Ah, this is a really difficult question, actually, because I don’t know how the situation will be. At the moment, we are facing very serious problems in Bali, especially in the villa rental and management industry. We are facing a lot of villas, a lot of management, a lot of villa rentals that are not registered in the association, and some of them are also without licenses. This brings problems in our industry. There are many price wars happening. Those companies or villas which do not have licenses can sell and promote their villa without any control, with very low prices, which is not the standard as it should be. This brings attention to our business partners or business members. If we keep this situation like this, then in the future our villa industry, our tourism, will be facing a serious problem. Everyone will rent the villa at a very low price, and then the quality will also go down, and when the quality goes down, the villa rental and management do not control well, then everything will be ruined, and it makes the future of the villa industry or even the tourism industry not good for Bali. I think that will happen here in Bali.
Now, if the government and the stakeholders of tourism stay calm and don’t do anything, then soon Bali will be forgotten. Somebody needs to care about this. That’s why we exist now—Bali Villa Rental and Management Association—to engage with those government or stakeholders who are in this industry. We gather and meet each other to improve the quality of tourism first, and then to find the solution, because we have a lot of problems now in Bali, especially in management of rubbish, traffic management, and safety management. We still have these problems here in Bali. If we keep this happening, then really Bali will be forgotten very soon, and no tourists will come. We don’t want that, of course. That’s why we exist now—we are together to find solutions for the future, what we can do and how we can do this together with the government. Of course, we push the government to execute real action—not only talking, not only meeting. Now everyone in the government should go to the field, meet the problem directly, and think about the solution—what the solution is, the best way to solve the problem.
Part 3: Advice for Investors and Sustainable Tourism
Kadek Adnyana: What would you say for people who want to invest in Bali to support Bali’s sustainability?
Wayana: First, the investors should follow the rules—what should be completed, for example, in IMB (building permit), and also the area. Don’t invest in a green area. This is also a very important attention for the investor: how they can find out the blueprint of Bali—where it is able to build, where it is not able to build. Let’s say do and don’t has to be understood before investing.
Kadek Adnyana: Do your homework, basically.
Wayana: Yeah, of course.
Kadek Adnyana: Anything else you would like to say for future investors or how we can make Bali quality tourism?
Wayana: First, as I told you, don’t break the rule—the Balinese rule, especially when we are in a Bali compound. We respect Tri Hita Karana. This is the core of tourism in Bali: how to harmonize the situation between human to environment, human to human, and human to God. This is a very important thing that the investor should respect. If this has been done—respecting our culture, respecting our rule here in Bali—then everything will be going better in the future and not like now. The investors, they don’t know about the regulation; they just invest without knowing the real rules.
Kadek Adnyana: So you think they don’t know, or they don’t care?
Wayana: Some of them, they don’t know because our government didn’t give the right information to them. And also, the other way, they also didn’t ask about the regulation. So both are really in a difficult situation. That’s why we exist now. We want to connect them, connect them with the villa rental, with the villa management, with those who have expertise, who have experience before, so they can connect here, so they can know better than just asking on the street, for example. They can trust us here who are in this business. We have experience, we have members also, they can ask to whoever is able to answer the question.
Part 4: The Future of Bali Tourism
Kadek Adnyana: Basically, we need to help people understand about the culture, about the regulation, so the quality tourism in the future is what needs to be invested in, right?
Wayana: Yes, that’s right. And we are now supporting the government, supporting the members also. We push them to create the tourism industry with better quality in the future to keep our—yeah, we call it the duck with the golden egg. Don’t only take the gold egg, but also please maintain the duck.
Kadek Adnyana: If there’s no duck, there’s no more egg.
Wayana: Yes, that’s right. That is what exists here, and then to create more gold eggs in the future. So for those investors, whoever invests in Bali—even the locals—should respect us here, the culture, and all the things we have here in Bali. This is only one in the world. We don’t have Bali in another world.
Kadek Adnyana: I agree! I have goosebumps. We have to take care of this unique place.
Wayana: I agree. Thank you so much for your time and explanation. I hope investors and tourists in Bali will help make tourism better for the long term.
Kadek Adnyana: Yes, that’s it. Thank you so much.
In summary, the Bali villa industry’s path forward is clear: sustainable investment, respect for regulations and culture, and a shared commitment to quality tourism are essential. By embracing these principles, everyone—from investors to local communities—can contribute to a vibrant, resilient, and prosperous future for Bali in 2025 and beyond.
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