Bali Seeks Airline Cooperation to Boost Tourist Tax Compliance
The Bali Provincial Government is intensifying efforts to improve collection of its Foreign Tourist Levy amid low compliance rates and limited enforcement capabilities. Introduced in February 2024, the tourist tax mandates all foreign visitors to pay 150,000 Indonesian Rupiah (approximately $10 USD) prior to entering Bali. However, as of late 2024, only about 32% of international tourists had made the payment, significantly short of expectations.
Airlines Urged to Assist in Publicising the Tax
A key challenge identified by Bali officials is the lack of active involvement from airlines flying into Denpasar, Bali’s main airport. Out of 37 international carriers servicing the route, only five have been informing passengers about the levy during booking, check-in, or onboard announcements. According to local sources, this lack of communication has contributed to widespread unawareness among travelers.
To address this gap, the Bali government is requesting airlines to integrate information about the tourist tax into their pre-departure communications and website payment portals. Most notably, officials want cabin crew to make public announcements about the levy prior to landing, ensuring passengers are fully informed well before arrival.
Enforcement Limitations and the Role of Aviation
Enforcement of the tourist tax at Bali’s immigration checkpoints has proven difficult due to broader national government controls. Immigration officers are not authorized to verify payments or demand proof of tax compliance, effectively limiting Bali’s ability to enforce the levy at the border. The government sees airline participation as crucial because it currently forms the most reliable channel for delivering information to incoming foreign visitors.
Expanding Collection Beyond Airlines
With airlines slow to adopt these measures, Bali has also updated its regional regulations to empower local hotels, tour operators, and travel agents to collect the Foreign Tourist Levy. Under Regional Regulation No. 2/2025, these entities can collect the tax in exchange for a 3% commission. Officials hope this policy revision will expand awareness and compliance from the initial stages of tourists’ trips.
Additionally, Bali is collaborating with Jakarta to integrate its proprietary Love Bali payment system into the national All Indonesia platform. This integration may streamline payment procedures and potentially link payments with the immigration arrival process, although direct enforcement by immigration officers remains unlikely.
Additional Challenges: Scam Websites
Tourists attempting to pay the levy online face further obstacles, as numerous fraudulent websites posing as official portals have emerged. These scam sites often charge inflated fees up to three times the legitimate amount and appear prominently in search engine advertisements, causing confusion among travelers. Although payment on arrival is an option, very few passengers are checked at the airport due to absence of dedicated enforcement points.
Financial Impact and Outlook
Bali collected approximately IDR 330 billion (around $20 million USD) from the tourist levy in early 2025, falling short of the target of IDR 380 billion (about $23 million USD). With Bali entering its peak tourism season, government officials emphasize the need for airline cooperation to close the revenue gap and ensure sustainable funding for local development and conservation initiatives.
Global Context
Bali is not alone in facing challenges related to tourism levies. Other popular destinations, including New Zealand, have recently adjusted their taxes on visitors amidst rising traveler numbers. However, Bali’s unique enforcement difficulties underscore the importance of collaboration among government agencies, airlines, and the tourism sector to achieve equitable compliance.
The Bali Provincial Government remains committed to working with the Indonesian Ministry of Transportation and international carriers to enhance communication efforts regarding the Foreign Tourist Levy. Their goal is to ensure that all foreign visitors are well informed and able to comply smoothly upon arrival, supporting Bali’s sustainable tourism objectives.
For travelers planning visits to Bali, it is advisable to verify payment of the Foreign Tourist Levy through official government channels to avoid scams. Awareness and cooperation from all stakeholders remain key to the success of this initiative.
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