Bali is the setting for a pilot project on the management of the villa industry, it has been revealed.
The Tourism and Creative Economy Ministry is currently preparing a draft bill on the management and regulation of villas, and will trial the guidelines in Bali, according to head of the Bali Villa Association (BVA) Mangku Wayan Suteja.
Currently there are no specialist regulations on the construction and operation of rental villas.
“The government is selecting Bali as the pilot project of this drafted regulation because various kinds of villas are being operated on the island. The regulation will raise our villas to international standards. The draft will be completed soon,” Suteja said, adding that the BVA had been involved in the drafting process.
Suteja said that part of the new regulations would involve setting minimum standards in facilities and security for a property to qualify as a villa. This would help counter rising rates of crime targeting “villas” in Bali, many of which currently have no proper security arrangements, he said.
“The definition of a villa, in terms of the provided facilities and services, is crucial,” Suteja said.
Suteja said that the regulations would also make it harder for villa operators to avoid permits and taxes.
“Most villas in the island are without permits,” he said, adding that the BVA estimated that there are currently around 1000 unlicensed villas in the Badung area.
Tjok Oka Artha Ardhana Sukawati , chair of the Bali branch of the Indonesian Hotels and Restaurants Association (PHRI) welcomed news of the new regulations.
“Many villas operate as starred hotels, although they offer no good facilities. Many others operate as cottages. The PHRI has yet to be able to classify them as a starred or non-starred hotel. It’s a specific business,” he said.