Bali Considers Higher Departure Tax to Enhance Tourism Experience

Bali, Indonesia – The island of Bali has recently gained recognition as the second most sought-after travel destination globally, prompting local leaders to contemplate implementing a higher departure tax for tourists. This proposal aims to improve the quality of the island’s tourism sector, which has seen significant increases in visitor numbers in recent years.

Learning from Bhutan’s Model

Bali’s leaders are looking towards Bhutan’s tourism model for inspiration. Bhutan imposes a Sustainable Development Fee of US$100 (approximately RM441) per day on international tourists. Additionally, foreign visitors to Bhutan must apply for a travel visa costing US$40 (around RM176) for stays of up to 90 days. This approach emphasizes sustainability and preservation of the country’s cultural and natural heritage while attracting a niche demographic of travelers who are willing to invest in their experience.

The Bali Sun reports that the governing bodies of Bali are keen on adopting similar strategies to enhance the visitor experience while also safeguarding the island’s ecological and cultural integrity.

Challenges with Current Tax Structures

In February 2024, Bali introduced a mandatory tourist fee of 150,000 rupiah (approximately RM40) as part of the Bali Tourism Tax Levy. However, recent findings indicate that less than 40% of international tourists are compliant with this fee. Reasons cited for the low payment rate include poor enforcement measures and a lack of clear communication regarding the policy.

The Indonesian Ombudsman has begun investigating the issue of low fee compliance, focusing specifically on the management of the Bali Tourism Tax Levy. This inquiry comes at a crucial time as the government considers ways to bolster revenue from tourism while protecting the island’s resources.

Advocating for Change

Puspa Negara, the Head of the Bali Marginal Tourism Alliance, has voiced strong support for adopting Bhutan-like measures, particularly the Sustainable Development Fee, to enhance the overall quality of tourism in Bali. He advocates for policies that would not only regulate the flow of tourists but also ensure that those who visit contribute fairly to the island’s economy and environmental sustainability.

Previous Initiatives and Future Directions

In 2023, Bali’s Governor Wayan Koster proposed a tourism quota to cap the number of international visitors allowed on the island each year. However, this quota was never formally implemented, leaving room for considerations on how best to manage incoming tourist numbers while supporting the local economy.

As Bali navigates its approach to tourism management, leaders are exploring options that balance visitor influx with sustainable practices, ensuring that the island remains a coveted destination without compromising its cultural and natural assets.