Marina Bay City Rejects Airbnb Ban, Urges Smarter Tax Collection Instead
By News Desk
Lombok, Indonesia –
Marina Bay City, the master-planned coastal development in South Lombok, has confirmed it has no intention of banning Airbnb or other short-term rental platforms, distancing itself from recent proposals reportedly being considered by the Governor of Bali.
Management at Marina Bay City says an Airbnb ban would be counterproductive for tourism, investors, and local communities—especially in high-growth destinations like Lombok that are still building international awareness and critical visitor infrastructure.
“Platforms like Airbnb are not the enemy,” a Marina Bay City spokesperson said. “They are one of the most effective tools available to showcase Indonesia’s villas, resorts, and lifestyle destinations to the world.”
Villas With Resort Comforts
Unlike traditional hotel stays, Marina Bay City says today’s travellers increasingly prefer private villas with access to resort-style amenities, including pools, wellness centres, restaurants, gyms, and concierge services.
“This is how people travel now,” the spokesperson said. “Families, long-stay visitors, digital nomads, and groups want privacy and space—but they still want hotel-level facilities. Airbnb makes that possible.”
Marina Bay City is planning between 5,000 and 10,000 residential homes and villas, many of which are expected to be utilised as short-term holiday rentals by owners and investors.
Founder Proposes Simple Tax Fix
The founder of Marina Bay City—who recently secured 100% ownership of the project after buying out Kinnara, an Asian real estate platform, and taking full control of the development—said the real issue is not Airbnb itself, but how governments currently collect accommodation taxes.
“The solution is incredibly simple,” the founder said. “You don’t ban Airbnb. You integrate it properly into the tax system.”
He is proposing to both the Lombok regional government and the Bali provincial government that Airbnb and similar digital booking platforms retain the existing 10% lease or accommodation tax at the point of booking and remit it directly to government.
“That ensures full compliance,” he said. “It removes enforcement headaches, eliminates leakage, and guarantees governments receive their revenue in real time.”
Revenue for Infrastructure, Not Restrictions
According to Marina Bay City, direct tax collection via digital booking platforms would provide governments with consistent income streams to reinvest in:
• Roads and transport infrastructure
• Water, sewerage, and power networks
• Waste management and environmental protection
• Hospitals, schools, and community services
• Local employment and skills development
“Banning Airbnb doesn’t stop tourism—it just pushes it underground,” the founder added. “Smart taxation brings activity into the open and benefits everyone, including local communities.”
A Strategic Opportunity for Lombok
Marina Bay City believes Lombok now has a strategic opportunity to differentiate itself from Bali by embracing modern tourism and investment models rather than restricting them.
“If Lombok welcomes Airbnb while Bali restricts it, Lombok will win,” the spokesperson said. “Investors, developers, and travellers always go where policy is predictable, fair, and forward-thinking.”
With airports, transport links, and large-scale developments accelerating across the island, Marina Bay City says Lombok is well-positioned to become Indonesia’s next global villa, resort, and lifestyle destination.
“The message is clear,” the company concluded.
“Don’t ban innovation. Tax it properly—and let tourism grow.”