An island repeatedly named as the world's best is to scrap a ban on new hotels.

This is despite Bali in Indonesia having to grapple with overtourism, as stricter rules to manage the growth of tourism accommodations are set to be introduced instead.

Bali's Governor, Wayan Koster, told media: “There is no need for a moratorium. What’s needed is stricter control."

The island's leader added that specific actions have not yet been decided, but hinted at a new Provincial Decree to regulate property ownership, including by foreign nationals, Skift reports.

Mr Koster said: “Yes, I will continue to permit the building of villas and hotels. But the rules will be strict."

Bali draws visitors from across the globe due to its people, art and culture, nature, food and beautiful beaches.

But concerns have been expressed about the negative effects of so many tourists, including environmental degradation.

Development, for example, has changed areas like Cemagi, North Kuta, where rice fields have been replaced by buildings.

In 2024, the island recorded 6.3million international tourists, surpassing a target of 5.5million.

Many came from Australia, India, and China, according to the Bali Provincial Tourism Office. The island aims to draw in 6.5million overseas visitors in 2025.

Bali was ranked at the top of the list of places to reconsider visiting in 2025 drafted by travel experts at Fodor’s.

But there has been some debate over hotel occupancy rates.

Deputy Governor Nyoman Giri has claimed that they remain low, with many accommodations struggling to attract guests even during peak months.

On the other hand, Douglas Louden, senior asset manager at Global Asset Solutions, said: "We are not sure what data is being reviewed here, our research indicated year round occupancies were in excess of 70% and that the destination was performing quite well despite the opening of new inventory."