Updates on Bali’s Tourism Tax Revenue and Its Impact on the Island’s Development
Denpasar, Bali – July 15, 2025 — Bali’s tourism sector continues to play a pivotal role in Indonesia’s economy, and recent updates from the Bali provincial government highlight how tourism tax revenues are generated and planned to be utilized for the island’s growth. The Bali Governor, Wayan Koster, recently spoke to the media about ongoing efforts to ensure that Bali receives adequate support and infrastructure development funding in proportion to its significant contribution to the nation’s foreign tourism earnings.
Bali’s Significant Contribution to Indonesia’s Tourism Economy
Governor Koster emphasized that Bali contributes approximately 44 percent of Indonesia’s total foreign tourism exchange. He pointed out that tourism-related taxes collected in Bali amount to IDR 107 trillion, which is forwarded to the central government. Given this substantial contribution, the Governor is advocating for increased allocations and support from the State Budget (APBN) to ensure Bali’s tourism sector remains prosperous and sustainable.
In an official statement, Governor Koster noted, “For Bali, given its significant contribution to Indonesia’s tourism foreign exchange earnings, at 44 percent, the central government deserves support and affirmation to bolster Bali’s tourism sector to maintain its quality and sustainability.” He also underlined the need for tailored infrastructure and strategic facility development appropriate to the unique characteristics and potential of each Indonesian region, with a particular focus on top global tourist destinations like Bali.
Calls for Regional Incentives and Infrastructure Improvements
Governor Koster proposed that a legal framework include norms to provide incentives for regions recognized as premier global tourist destinations. These incentives would primarily support infrastructure development and strategic facility enhancements suited to the specific needs of each region.
One current challenge highlighted by the Governor involves congestion issues around Sanur port, a vital transport hub to nearby Nusa Penida island. Although the port functions well, the increased traffic is causing bottlenecks on the bypass road, prompting the need for coordinated infrastructure upgrades to benefit both tourists and residents.
Advocacy for Tourism Tax Revenue to Benefit Bali Directly
Adding to the conversation, Bali Senator Made Supartha voiced concerns over the allocation of Bali’s substantial tourism tax revenues. He stressed that the IDR 107 trillion collected from hotel, restaurant, and other tourism taxes, as well as revenues from eVisa and visa-on-arrival fees paid by tourists visiting Bali, should be reinvested within the province.
Senator Supartha highlighted the lack of direct compensation Bali has received despite generating such large sums, stating, “Why haven’t we received any compensation at all? The money is for the benefit of the Balinese people and the interests of Balinese tourism. There must be a contribution, so that’s one of our homework assignments.” He further advocated for reciprocal financial support from the central government to meet Bali’s development needs.
The Bali Tourism Tax Levy: A New Revenue Stream
Since its introduction in February 2024, the Bali Tourism Tax Levy has become a key component in funding the island’s ecological and cultural conservation and infrastructure improvements. This mandatory fee of IDR 150,000 is charged to all international tourists traveling to Bali. Payments can be made conveniently via the LoveBali website or app, as well as at counters located in the arrivals halls of I Gusti Ngurah Rai International Airport, both domestic and international terminals.
Revenues from this tourism levy are intended specifically for nurturing Bali’s natural environment, preserving cultural heritage, and upgrading tourism-related infrastructure to enhance visitors’ experiences.
Public and Traveler Reactions
Local residents, businesses, and visitors have voiced varied opinions regarding the tourism tax system and related infrastructure projects. Some travelers express frustration with the eVisa online application process, citing technical issues during submission. Meanwhile, residents and drivers in certain areas, such as Sanur, have commented on congestion and proposed solutions involving better traffic regulation and streamlined access to ports.
Moving Forward
The Bali provincial government appears committed to advocating for increased financial support from the central government to match the island’s contributions to Indonesia’s tourism economy. A collaborative approach focusing on fair revenue distribution, strategic infrastructure development, and sustainable tourism practices is poised to shape Bali’s future as a world-renowned destination and prospering community.
For tourists planning visits, understanding these developments underscores the importance of responsible travel and participation in initiatives like the Bali Tourism Tax Levy, which directly contribute to preserving the island’s unparalleled cultural and natural assets.
Stay informed on Bali’s latest tourism developments and travel news to make the most of your visit to this iconic island paradise.
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