Bali’s Tourism Tax Levy: A Year in Review and Future Plans

Bali, Indonesia – Just over a year has passed since Bali implemented its mandatory Tourism Tax Levy aimed at preserving the island’s culture and nature while enhancing tourism infrastructure. However, the reception of this initiative has been underwhelming, with reports indicating that many international visitors remain unaware of their obligations and the benefits generated from their contributions.

Tax Collection and Visitor Participation

The Bali Provincial Government introduced the Tourism Tax Levy on February 14, 2024, requiring all international visitors to contribute IDR 150,000 (approximately USD 10). This contribution is intended to support various initiatives aimed at sustainable tourism and environmental protection.

Since the implementation of the levy, the provincial government has successfully collected IDR 317 billion (just under USD 20 million) in funds. In 2024, Bali welcomed 6,333,360 international tourists, but only 35% of them paid the required fee. If compliance had reached 100%, the total revenue could have approached IDR 950 billion.

Despite the significant amount collected, additional data from January 2025 to March 6, 2025 shows that an extra IDR 46.55 billion has been raised, albeit from a limited pool of contributors.

Challenges and Plans for Improvement

Tjok Bagus Pemayun, the Head of the Bali Tourism Office, acknowledged the challenges faced in collecting the levy. He noted that a primary issue is the insufficient awareness among tourists regarding the fee. To counter this, Pemayun has committed to enhancing the "massive socialization" of the tourism tax, aiming to improve tourists’ understanding of their obligations.

"We need to ensure that more international tourists are aware of their duty to pay this fee while visiting Bali," Pemayun explained. Currently, tourists can pay the levy at the arrivals hall of I Gusti Ngurah Rai International Airport or online via the LoveBali app.

Future Payment Systems and Collaborations

To streamline the collection process further, Pemayun is looking to increase the number of payment options available to tourists. Moreover, he proposed a partnership with airlines to ensure that travellers without proof of payment for the levy would not receive a boarding pass when departing from Bali.

“If it can be paid before arriving in Bali, that’s very good. But if they want to return to their country and have not paid, then they cannot get a boarding pass,” he clarified, adding that the payment voucher would henceforth be a requirement for boarding.

The Debate over a Daily Tourism Tax

As discussions continue on how to improve compliance with the Tourism Tax Levy, some leaders in Bali are advocating for a daily tourism tax reminiscent of Bhutan’s sustainable tourism model, which charges visitors a significant fee per day. In Bhutan, visitors are required to pay a sustainable development fee of USD 100 per day in addition to a visa application fee.

While the Bhutanese model emphasizes strict visitor quotas to preserve the environment, many in Bali argue that such a shift would threaten the island’s economy, which heavily relies on mass tourism. The current Tourism Tax Levy is applied once per visit, with tourists required to keep a QR-code voucher as proof of payment.

Conclusion

As Bali looks to improve its tax collection framework, tourists can expect to see more advertising and educational campaigns related to the Tourism Tax Levy. Visitors are reminded that the levy applies to all travellers, including children, and that it can be paid conveniently through the LoveBali website.

In a region where nature and culture are at the forefront of its appeal, the successful implementation of this levy could play a pivotal role in shaping the future of tourism in Bali. For now, local officials remain optimistic that more robust communication strategies will enhance compliance, ultimately benefiting both the island’s communities and its valued visitors.

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