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15 Mar 2025

Bali’s Tourism Future: Will Higher Fees Deter ‘Low-Class’ Tourists?

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Bali Considers Higher Fees for Foreign Tourists to Enhance Tourist Quality

As Bali continues to grapple with tourism challenges, local lawmakers are proposing increased fees for foreign visitors in a bid to attract higher-spending travelers and reduce the presence of what some locals describe as “low-class” tourists. The initiative is part of the broad effort to support the local Balinese community and enhance the overall quality of tourism on the island.

Current Fees and Proposed Increases

Currently, foreign tourists entering Bali are required to obtain an e-Visa on Arrival that costs IDR500,000 (approximately AUD$48). In February 2024, an additional levy of IDR150,000 (about AUD$15) was introduced to fund local tourism initiatives. However, Bali’s lawmakers argue that this amount is insufficient.

Gede Komang Kresna Budi, a member of the Bali Regional Legislative Council, has articulated his concern regarding the existing tax structure. He stated, “I think IDR150,000 tax is too low, so Bali seems like a cheap tourist destination. Why should Bali be sold cheaply?” There is a growing call among local officials to increase this ‘foreign tourist tax’ to AUD$75 (IDR750,000).

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Daily Fees and Visitor Caps

An even more ambitious proposal on the table includes implementing a daily fee for tourists, similar to the system currently adopted by Bhutan. In this model, tourists are required to pay a Sustainable Development Fee of US$100 (approximately AUD$157) per person daily while also using local guides and services. This approach not only ensures a regulated number of visitors—capped at 400,000 annually—but also aims to elevate the quality of tourist experiences.

I Wayan Puspa Negara, the head of the Bali Marginal Tourism Actors Alliance, supports a shift to a daily fee. “Foreign tourists who come to Bali must be selected, like in Bhutan, from a spending perspective,” he explained. Bali’s governor, Wayan Koster, has similarly expressed interest in adopting Bhutan-like tourism practices, emphasizing a transition from a quantity-based to a quality-focused tourism strategy.

Addressing Local Concerns

One of the primary motivations behind the proposed changes is to address growing dissatisfaction with the behavior of certain tourists, often referred to as “flip-flop tourists.” This term is used to describe visitors who are perceived as budget travelers, frequenting cheap accommodations, relying on public transport, and failing to respect local customs.

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Ida Bagus Raka Suardana, an economics and business lecturer at Bali’s National Education University, highlighted the challenges posed by this demographic. He noted that such tourists often contribute minimally to the local economy and their behavior can lead to disturbances in the community. “They do not contribute much to society. They cause commotion in bars, drive recklessly, and sometimes disregard local wisdom,” he elaborated.

While Raka Suardana acknowledged that mirroring Bhutan’s strict tourism model may be extreme, he supports the idea of selectively admitting visitors based on their financial capacity.

Conclusion

As Bali’s government deliberates on these proposals, the outcome could significantly reshape the island’s tourism landscape. With an eye on quality over quantity, local officials aim to cultivate a more respectful, economically beneficial tourist environment while addressing recurrent issues associated with lower-spending visitors. As these discussions develop, travelers may soon find that a Bali getaway could come with a substantially higher price tag than before.

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