Bali’s Mandatory Tourism Tax Marks One Year, Raising Significant Revenue

As of February 14, 2024, Bali has implemented a mandatory tourism tax aimed at enhancing the cultural and environmental sustainability of the island. In its first year, the tax has reportedly generated close to $31 million, reflecting the significant influx of international tourists, particularly from Australia.

Details of the Levy

The tourist levy, established at 150,000 Indonesian Rupiah (approximately $15), is designed to fund initiatives that protect Bali’s rich culture and environment. Indonesian Tourism Minister Sandiaga Uno stated last year that the proceeds would be instrumental in promoting Balinese customs, traditions, cultural arts, and overall environmental sustainability. Uno emphasized, “In the future, the collection of [tourist levy] fees in Bali will protect nature and keep it clean and sustainable.”

Bali has seen robust tourist activity in 2024, with over 6.3 million international visitors eligible to pay the levy. Notably, statistics from The Bali Sun suggest that only 35% of these arrivals completed the payment, resulting in a total levy collection that fell short of the potential IDR 950 billion ($95 million).

Challenges and Future Plans

Tjok Bagus Pemayun, head of the Bali Tourism Office, acknowledged challenges in effectively communicating levy regulations to tourists. He stated, “Therefore, socialisation will continue to be improved so that this policy can run more effectively.”

To enhance compliance, Pemayun proposed collaboration with airlines to ensure that passengers without a valid tourist tax payment cannot receive their boarding passes for departure. He commented, “If they want to pay after arriving in Bali, it’s also fine. But if they want to return to their country and have not paid, then they cannot get a boarding pass.”

Currently, tourists visiting Bali also pay a $48 e-Visa on Arrival fee, along with the $15 tourism tax.

Calls for Increased Levy

Some local lawmakers have been advocating for an increase in the tourism tax to $75 per day, arguing that the current levy devalues Bali as a tourism destination. Gede Komang Kresna Budi, a member of the Bali Regional Legislative Council, suggested, “I think IDR150,000 tax is too low, so Bali seems like a cheap tourist destination.”

The proposed increase has drawn comparisons to Bhutan’s approach, where a daily "Sustainable Development Fee" of $157 is levied, and annual visitor numbers are capped at 400,000 to maintain quality tourism.

Addressing Concerns of Unruly Tourism

The tax hike discussions come in the wake of Indonesia’s ongoing efforts to manage mass tourism and address concerns over unruly behavior from some foreign visitors. The Indonesian government has been clear in its requests for tourists to respect local customs and encourages exploration beyond Bali.

An official list of dos and don’ts has been released for visitors, and a hotline has been set up to report misbehavior. Additionally, a special task force is monitoring foreign activities on the island.

Payment Methods for the Levy

Tourists can conveniently pay the levy through the Love Bali website by entering their passport and arrival details. Upon successful payment, a “Levy Voucher” is emailed to the user, which must be presented at various checkpoints when entering Bali.

While there are payment counters at I Gusti Ngurah Rai International Airport and Benoa Harbour for those wishing to pay by debit or credit card, travelers are encouraged to complete their payment online prior to their arrival.

As Bali continues to navigate the complexities of tourism, the impact of the tourism tax will remain a focal point in efforts to foster a sustainable and respectful travel culture on the island.