Many investors assume that short term rentals like Airbnb are allowed everywhere in Bali. In
reality, zoning regulations determine where tourism accommodation can legally operate.
Understanding these zones is essential before purchasing land or developing a villa.

1. Pink Zone (Tourism – Zona Pariwisata)
   This is the primary zone where Airbnb, villas, and hotels are legally permitted. The land is
   designated for tourism accommodation, and with the proper licenses (such as an NIB and tourism
   certificate), short term rentals can operate legally. Because of this, many investors prefer
   tourism zoned land.
2. Orange / Mixed Use Zones
   Mixed use zones combine residential and commercial activities. Short term rentals can
   sometimes be approved here, but additional permits and local approval may be required depending
   on the exact sub zone.
3. Red / Commercial Zones
   Commercial zones are designed for businesses such as shops, offices, restaurants, and hotels.
   Tourism accommodation may be permitted depending on the specific classification within the
   commercial zone.
4. Yellow (Residential) Zones
   Residential zones are intended for housing. Operating a full Airbnb business is generally not
   permitted here, particularly for foreign owned companies. In some cases, Indonesian homeowners
   can rent rooms under a ‘Pondok Wisata’ license, but this usually does not apply to investors.
5. Green / Agricultural Zones
   Agricultural zones are protected farming areas. Tourism accommodation and Airbnb operations are
   not permitted in these zones.
   

Important note: Many villas currently operating in Bali are located in residential or agricultural
zones. While they may function in practice, they are not always fully compliant with zoning
regulations. For investors seeking long■term security, tourism or mixed■use zoning is typically the
safest approach.