Poor enforcement of the law is blamed for the large number of illegally operating commercial villas in Bali, with half of the 1,600 villas now operating in Bali estimated to be unlicensed.
Bali Post quotes the secretary of the Bali chapter of the Indonesian Hotel and Restaurant Association (PHRI), urging the government to have the courage to close illegal villa operations, including demolition of villas, bungalows and tourist accommodation determined to be illegal.
The PHRI-Bali official also blamed the disorganised accommodation sector for causing economic hardship on Bali's formal transport sector.
Registered transport operators must face competition from gypsy transport operators, sometimes operated by illegal villas that entice clients with offers of airport transfers and vehicle charters throughout their stay.
A ministerial decree of 2003 requires vehicles used by villas to be legally registered as tourism transport.