The development of hotel in Yogyakarta City in the last 5 (five) years suggests uncontrolled development. Commercialization of urban spatial also becomes an unavoidable thing. This is resulting in the change of spatial use and land tenure; the emergence of social and ecological issues; as well as injustice in spatial and land as result of land tenure by big capital owner. Therefore it needs to be controlled. The objectives of this research were to learn: (a) the change of spatial use
and land tenure used for hotel development; (b) social and ecological issues emerge as result of massive development of hotels; (c) policy in controlling hotel development conducted by Government of Yogyakarta City, as well as (d) result of the policies. Research method used was descriptive qualitative method. Data collection was conducted by interview; observation; and documentary study. Policy in controlling hotel development taken by Government of Yogyakarta city was analyzed by using Policy Implementation Model M. Grindle, seen from policy content or policy environmental aspects that were implemented.
Result of the research indicated that: First, conversion of spatial use in Yogyakarta City that was conducted based on license procedure either through Land Office of Yogyakarta City or licensing department and other related SKPD was only formality so it still contained many violations. Conversion of land tenure for hotel development conducted via sale and purchase mechanism, leasing, and inbreng, apparently was still containing law violation related to subject of right. Second, emerged issues as result of massive development of hotels were: water source exploitation; shift of population; increasing the transfer of land tenure to capital owner; and emergence of resistance movement refusing hotel development. Third, Policy taken by Government of Yogyakarta City through Mayor Regulation 77 Year 2013 regarding Hotel Development Control in Yogyakarta City after analyzed by using Implementation Model M. Grindle can be concluded that the policy is failed. Fourth, Policy of hotel development control
enforced by Government of Yogyakarta City did not provide a significant impact, so there were many hotel development still ongoing despite the licensing has been closed. Fifth, toughest challenges encountered by Ministry of Agrarian and Spatial/National Land Agency in controlling hotel development in Yogyakarta City were not only lack of regulation in spatial use and land tenure control, but also policy taken by the Government of Yogyakarta City was still full of sense of power and politic, so policy taken still could not solve existing issues.
Key Words: Controlling, Spatial Use, Land Tenure, Urban