Bali Governor Introduces New Measures to Boost Tourism Tax Compliance

Plans Announced to Enhance Payment Accessibility for Tourists

Bali’s Governor Wayan Koster has announced an ambitious initiative aimed at increasing compliance with the recently introduced Bali Tourism Tax Levy. This new strategy includes offering a commission of IDR 150,000 (approximately USD 10) per traveler to local businesses that partner with the Bali Provincial Government to facilitate the tax collection process.

Background of the Bali Tourism Levy

Introduced on February 14, 2024, the Bali Tourism Levy is a mandatory fee of IDR 150,000 that all international visitors to the province are required to pay. Tourists can pay this levy upon their arrival at Bali’s I Gusti Ngurah Rai International Airport or through digital platforms such as the LoveBali website or app. The fee was initially designed to enable tourists to contribute to the preservation of Balinese culture and the conservation of the island’s landscape, as well as to enhance tourism infrastructure.

Despite the importance of this levy, compliance has been troublingly low. Data from the Bali Provincial Government indicates that less than 40% of international arrivals have paid the fee. With a total of 6,333,360 international tourists visiting Bali in 2024, the province expected to collect around IDR 950 billion (approximately USD 46 million) from the levy, yet only managed to gather IDR 317 billion (around USD 19.1 million).

Strategic Adjustments by Government Officials

Governor Koster, alongside officials from the Bali Tourism Office, has indicated that changes are necessary to help increase the percentage of tourists complying with the tourism tax. During a media briefing on March 18, the Governor laid out a plan to enhance the convenience of fee payment options in various locations across the island. "This shows that the policy needs to be improved to be more effective," he stated, emphasizing the need for improved service quality and advancements in Bali’s cultural tourism.

Under the forthcoming policy changes, local businesses will have the opportunity to act as payment points for tourists wishing to settle their tax fees. In return for facilitating these transactions, the businesses will receive a 3% commission (approximately IDR 5,500) for each payment processed, thereby incentivizing them to participate in the tax collection efforts.

Collaboration with Airlines

Additionally, Bali’s local government is exploring potential partnerships with airlines to simplify the payment process. Agung Bagus Pratiksa Linggih, Chairman of Commission II of the Bali DPRD, shed light on a proposed integration of the tourism tax fee into airfare costs. He explained that the solution would involve notifying travelers about the levy during their flight booking process.

“SiTA (Société Internationale de Télécommunications Aeronautiques) is a collective of international airlines, and about 60-80% of these airlines already operate flights to Bali," Linggih reported. "Through this system, when passengers book their tickets, they will be prompted to pay the tourism tax, ensuring compliance before their arrival."

In this proposed system, travelers who have yet to pay the levy would also receive reminders when checking in for their flights. If the levy remains unpaid, the issuance of their boarding passes would be contingent upon settling the tax obligation.

Conclusion

Bali’s Governor and local officials are hopeful that these initiatives, which include enhanced payment methods and collaborations with local businesses and airlines, will significantly improve compliance rates with the Bali Tourism Tax Levy. With these measure in place, the government aims to increase the collection of funds essential for the preservation and enhancement of Bali’s cultural and environmental heritage. As the efforts progress, both tourists and the local community will play crucial roles in ensuring the success of this initiative.