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The objectives of this chapter are: first, to analyze the magnitude of the COVID-19 impact on homestay business in Bali and second, to identify the most significant determinant of COVID-19 to the homestay industry. It hopes that the results would contribute to policy recommendations and business strategies to increase the resilient capacity of the homestay business during the pandemic period. Due to the pandemic situation, 74 respondents of homestay owners were interviewed through an online survey (Google form). The data gathering was through three events of focus group discussion and several in-depth interviews. Partial Least Squares regression and descriptive statistics were applied. The result shows that, first, the COVID-19 pandemic has a considerable decreasing impact on the (1) homestay occupancy rate, (2) homestay characters (room rental price), (3) homestay competency capital, (4) provided facilities, and (5) guest composition. Second, during the global pandemic, the homestay business association, the number of media promotions, the number of room booking channels, and the homestay characters significantly impact the homestay occupancy rate. Third, to increase the demand for tourism, appropriate measures and policies should be taken, such as increasing the travel bubble consent, mobilizing central government officers working in Bali, increasing the number of domestic promotions, and only using an effective and efficient room booking channel.