The removal and limiting chicken on menus came after hearing the news of a woman dying from the avian influenza in a hospital in Bali's capital, Denpasar, on Tuesday.
A spokesman of the hotel and restaurant association in Bali cited one restaurant in Ubud, north Denpasar, as eliminating chicken from its menu by up to 60 percent and replacing such dishes with different meals.
A spokesman of one hotel described the move as a "preventive measure" despite the fact that the disease is not transmitted through cooked food.
Westin Resort Hotel spokeswoman Reinata Tjoa said the menu in their restaurant will remain chicken-free as long as bird flu death occurs in Bali.
Several restaurants, however, are continuing to serve chicken to their guests, saying the meat comes from reputable suppliers and that they properly cook such food. Chicken raisers in Bali had assured that their supply is clean and safe because they disinfect chicken coops every two days.
The news agency Antara said the health ministry confirmed on Wednesday that bird flu killed a 28-year-old woman on Tuesday, the second such death in Bali and the 84th victim in Indonesia.
The ministry said the woman from a village in the Tabanan district northwest of Denpasar came in contact with infected chickens and was admitted at the Sanglag General Hospital on Aug. 8.
