Local Association Demands Government Action Against Bali’s Illegal Tourist Villas
- The Bali Villa Rental and Management Association (BVRMA) has called on the government to crack down on illegally operated tourist villas in Bali.
- Concerns over tourist safety, lost tax revenue, environmental degradation, and unfair competition with legally registered villas are driving the push for the clampdown.
- BVRMA highlights that many illegal villas accept payments through offshore accounts, bypassing Indonesian tax laws, and fail to comply with safety and environmental standards.
- The association has proposed becoming the official verifier for rental villas in collaboration with the Bali Tourism Office.
- However, no formal statement from the Bali Tourism Board has been issued regarding this partnership proposal.
Snigdha’s Views
- Interestingly this push for regulation in Bali comes not from the government but from an industry association, making it a unique, bottom-up approach.
- If the BVRMA successfully launches a verified villa marketplace with the Bali Tourism Office, it could pose significant competition for Airbnb, which is strategically focusing on expanding in the Asia-Pacific region and reducing its reliance on its top five markets.
- A government-endorsed platform, backed by local credibility, might attract safety-conscious travelers seeking assurance that their accommodations meet local standards, something Airbnb has struggled with in unregulated markets.
- On the flip side, even compliant short-term rentals could face heightened inspections, stricter scrutiny, added costs, and increased administrative burdens.
- These measures are also rooted in advocacy, as the BVRMA pushes for fair competition, ensuring that legally compliant villas are not undercut by unregistered operators avoiding taxes and safety standards.
- For property managers, this is a wake-up call. Professionalism is no longer optional. Complying with the proposed regulations will ensure their survival and give them a competitive edge.
Booking.com partners with Antom to deliver localized payment solutions in Asia
- Booking.com has partnered with Antom, a leading payment and digitization services provider, to expand local payment options across eight key Asian markets.
- Through its partnership with Antom, Booking.com will introduce over 40 payment options, including online banking, bank transfers, digital wallets, and local card payments.
- Key mobile wallets like AlipayHK (Hong Kong SAR), Boost (Malaysia), GCash (Philippines), GrabPay (Singapore), Kakao Pay (South Korea), Naver Pay (South Korea), Touch ’n Go eWallet (Malaysia), and TrueMoney (Thailand) will be among the first to roll out.
- By integrating Antom’s multi-currency and cross-border settlement capabilities, Booking.com is aiming to enable accommodation providers to expand their reach and streamline payment processes.
- This collaboration can be particularly beneficial for smaller properties and holiday rentals, as it aims to help them overcome traditional payment challenges and operate more effectively in a global marketplace.
About Antom:
Antom, part of Ant International, provides payment and digitization services for merchants worldwide. It offers solutions tailored to various business needs, with local acquiring capabilities in over 40 markets and support for more than 100 currencies.
Snigdha’s Views
- Asia is one of the world’s most diverse and dynamic regions, where a rich mix of languages, currencies, and cultural preferences creates unique challenges for global platforms. For Booking.com, tailoring payment services to align with these regional needs is a strategic necessity.
- Airbnb and Booking.com both are going head-to-head at tapping into Asia’s booming tourism market, with Airbnb launching host training in Bali and Ad campaigns in Japan, while Booking.com focuses on localized payment solutions.
- For property managers, this partnership means smoother payments, access to a wider pool of international travelers, and fewer operational headaches.
- Antom’s multi-currency support allows travelers to pay in their preferred currency, such as the Japanese Yen, while property managers receive payments in their local currency, like Indonesian Rupiah which eliminates the need for manual currency conversions.
- Its cross-border settlement feature goes a step further by streamlining international payments, managing exchange rates, and navigating the complexities of global banking systems.
- For property managers and operators, this push for localization by major platforms can bring valuable tools and resources to help them compete and succeed.
British Columbia Targets Illegal Rentals with Mandatory Short-Term Registry
- British Columbia (B.C.) is rolling out a new short-term rental (STR) registry in a bold move to address the housing crisis and promote fairness in the rental market.
- Starting May 1, 2025, all short-term rental hosts, platforms, and strata hotel platforms operating in the province must register.
- There will also be annual registration fees, ranging from $100 for hosts who live on the property to $450 for those who live elsewhere.
- Hosts who fail to register risk having their listings removed starting May 1, 2025, with future bookings canceled by June 1, 2025.
- To encourage early compliance, the government is offering discounts like, 50% off registration fees for hosts who register by February 28, 2025, and 25% off for those who register by March 31, 2025
- These measures will be enforced with the help of platforms, which are required to verify the registration of all listings and take action against non-compliant operators.
- According to Minister Kahlon, the registry data will be shared with the finance ministry and local governments to strengthen enforcement against owners violating STR regulations.
Snigdha’s Views
- Short-term rental registries are quickly becoming commonplace, with similar systems already in place in France, Italy, and even in NYC.
- This new registry is both a challenge and an opportunity for property managers in B.C. On the one hand, it introduces a layer of compliance that may feel burdensome. On the other, it levels the playing field, ensuring that all operators adhere to the same standards, which could ultimately build trust with travelers and local communities.
- To register for B.C.’s STR Registry operators need to complete an online application via the government portal, provide property details, and pay the annual fee. A registration number will be issued, which must be displayed on all listings by May 1, 2025.
- Registering early will not only avoid penalties but also secure discounts and demonstrate a commitment to operating responsibly.
- This could become a competitive advantage in a market increasingly focused on transparency and fairness.