Thailand Joins Indonesia And Vietnam In Cracking Down On Airbnb: How Southeast Asian Countries Are Changing The Vacation Rental Game In 2025!

Published on October 29, 2025

The increasing fame of short-term rentals done platforms like Airbnb has brought astir a important displacement successful nan tourism industry. While these platforms person revolutionized recreation by offering unsocial accommodations, they’ve besides raised respective concerns, peculiarly in Southeast Asia. In 2025, aggregate countries successful nan region person started cracking down on Airbnb rentals to reside issues like overtourism, housing shortages, and unfair competition with accepted hospitality providers. This article explores really respective Southeast Asian nations are changing their stance connected picnic rentals and what this intends for travelers and hosts.

Indonesia: Bali’s Crackdown connected Illegal Rentals

Bali, 1 of Indonesia’s most celebrated tourer destinations, has agelong been a hotspot for Airbnb rentals. However, by 2025, the Bali government began taking much fierce measures to modulate nan platform. The increasing number of unlicensed rentals has created an imbalance successful nan section hospitality industry, pinch galore visitors opting for Airbnb villasthat connection little prices than licensed accommodations.

Reports show that over 39,000 Airbnb listings in Bali in 2025 lacked nan required tourism licenses, and this has sparked a heated debate. While visitors flock to Bali for nan charm of backstage villas and unsocial experiences, these unlicensed properties often bypass taxes and regulations that use to section hotels and guesthouses, making it difficult for morganatic businesses to compete.

The Bali Hotel and Restaurant Association has been vocal astir this issue, stating that nan unregulated rentals are harming nan section system and undermining nan value of tourism. With Airbnb properties mushrooming crossed nan island, nan authorities has stepped successful pinch stricter enforcement, ensuring that rentals comply with local tourism regulations. Bali’s actions are a clear illustration of nan region’s increasing vexation pinch unregulated picnic rentals and their imaginable antagonistic effect connected nan situation and section communities.

Thailand: Bangkok’s Struggles pinch Unlicensed Airbnb Properties

In Thailand, Bangkok remains 1 of nan astir visited cities successful Southeast Asia, and Airbnb rentals are incredibly celebrated pinch some visitors and expatriates. However, contempt nan platform’s ineligible position successful nan country, Bangkok has faced important challenges with unlicensed short-term rentals. As of July 2025, retired of 16,806 Airbnb listings in Bangkok, nary had nan required licenses to run legally.

The deficiency of enforcement regarding short-term rental licenses has led to calls for action from some section authorities and accepted hospitality providers. The authorities is starting to admit nan problem, but advancement has been slow. Without proper short-term rental licenses, hosts evade taxes and different ineligible obligations, starring to an uneven playing section for hotels and licensed guesthouses.

The absence of due regularisation besides raises concerns astir nan information and value of accommodations offered through Airbnb. While travelers bask nan affordability and section charm that these rentals offer, nan deficiency of oversight tin lead to situations wherever hosts neglect to meet information standards, putting visitors astatine risk. Moving forward, it is expected that Thailandwill tighten regulations on short-term rentals, pursuing nan illustration group by different countries successful nan region.

Vietnam: Ho Chi Minh City’s Restrictions connected Airbnb Rentals

Vietnam has besides begun to implement stricter regulations on short-term rentals. In 2025, Ho Chi Minh City (formerly Saigon), a bustling destination for some visitors and business travelers, introduced a prohibition on short-term rentals within condominium buildings. This argumentation intends to reside concerns regarding housing availability and nan disruption caused by visitors staying successful residential buildings.

The government’s determination reflects nan request to protect section communities from nan antagonistic effects of overtourism. In summation to limiting Airbnb rentals successful residential buildings, nan authorities has begun cracking down on unregistered hosts, requiring that each short-term rentals comply with local business registration and taxation obligations.

While Airbnb remains ineligible in Vietnam, hosts are now required to travel section laws. This move has prompted a displacement successful nan way tourists approach their accommodations in Vietnam, pinch much travelers turning to traditional hotels and licensed accommodations. However, nan prohibition connected short-term rentals successful condominiums is only 1 measurement successful a broader effort to modulate nan assemblage and guarantee that it benefits some nan tourism manufacture and nan section population.

Malaysia: Penang’s Immediate Crackdown connected Short-Term Rentals

In Malaysia, Penang has emerged arsenic a cardinal illustration of a authorities taking action against short-term rentals. Starting in August 2023, Penang implemented an immediate crackdown on unlicensed short-term rentals, which proceed to run without adhering to section laws. The authorities government introduced measures aimed astatine regulating picnic rentals, seeking to equilibrium nan needs of tourists and local communities.

While nan move was welcomed by accepted hospitality businesses, it raised concerns for Airbnb hosts, galore of whom now look nan situation of gathering nan ineligible requirements for operating picnic rentals. As a result, Penang has been pushing for clearer regulations to thief hosts navigate nan ineligible scenery while ensuring that tourists still person entree to unique, affordable lodging options.

The crackdown in Penang reflects a broader inclination successful Southeast Asia, wherever section governments are progressively targeting Airbnb properties that run without nan due licenses. This inclination whitethorn dispersed to different parts of Malaysia as authorities look to power nan emergence of short-term rentals and protect nan interests of some travelers and residents.

South Korea: Restrictions connected Officetels and Studio Apartments

While not successful Southeast Asia, South Korea has besides been tightening regulations on Airbnb in 2025. Starting in October 2025, South Korea will restrict short-term rentals in studio apartments and officetels (mixed-use buildings combining agency and residential spaces). These properties will nary longer beryllium allowed on Airbnb as portion of nan government’s push to guarantee that short-term rentals comply with residential zoning laws.

This move is seen arsenic portion of a broader effort to protect nan residential characteristic of communities and limit nan effect of tourism connected section lodging markets. In response, Airbnb hosts in South Korea will beryllium required to guarantee that their properties meet zoning and information regulations, aliases they whitethorn look penalties. While this alteration will impact immoderate celebrated areas for short-term rentals, it is apt to promote hosts to accommodate and find caller ways to run wrong nan boundaries of nan law.

The Growing Trend successful Southeast Asia

Across Southeast Asia, nan inclination of cracking down on Airbnb rentals is growing. Countries like Thailand, Vietnam, Indonesia, and Malaysia are opening to admit nan request for regularisation wrong nan quickly expanding short-term rental market. This displacement reflects broader concerns astir nan effect of Airbnb on section economies, lodging availability, and organization welfare.

As nan tourism manufacture recovers post-pandemic, section governments are prioritizing regulation to guarantee that short-term rentals contribute positively to nan system while mitigating antagonistic effects specified as overtourism and housing shortages. In nan coming years, travelers will apt brushwood stricter requirements and more regulated options for picnic rentals successful nan region.

What Does This Mean for Travelers?

For travelers, these changes whitethorn effect nan readiness and costs of Airbnb rentals successful immoderate Southeast Asian countries. Airbnb users whitethorn find it much difficult to book properties successful celebrated destinations like Bali, Bangkok, or Ho Chi Minh City, particularly successful residential areas. As governments tighten regulations, travelers whitethorn request to displacement towards much accepted forms of accommodation, specified as hotels or hostels, aliases look for licensed Airbnb listings that comply pinch section laws.

For Hosts, nan crackdown intends adjusting to caller regulations, which mightiness see registering properties, paying taxes, and ensuring that listings meet information and ineligible standards. While these changes mightiness beryllium seen arsenic a burden, they whitethorn besides thief create a much sustainable and competitory picnic rental market.

Conclusion: A New Era for Vacation Rentals successful Southeast Asia

As Southeast Asia takes important steps to modulate the Airbnb industry, travelers and hosts alike will request to accommodate to caller norms. The efforts to ace down connected unlicensed rentals bespeak a increasing knowing of nan request for equilibrium between tourism, local communities, and sustainable travel. While nan roadworthy up whitethorn beryllium filled pinch challenges, these changes coming an opportunity for a more responsible and regulated tourism industry in nan region.

For those readying to sojourn Southeast Asia, staying informed astir section regulations and opting for licensed accommodations will go progressively important. By doing so, travelers tin thief support nan affirmative improvement of nan region’s tourism industry, while besides ensuring that their vacations stay enjoyable and hassle-free.