Bali Spa Taxes Spike 40%: Tourists Prepare for Possible Price Increase

Bali’s renowned spa industry is facing a significant challenge as the provincial government contemplates raising taxes from 15% to a whopping 40%. The head of the Bali Tourism Agency, Tjok Bagus Pemayun, is leading the charge to preserve the unique Balinese Spa experience, arguing that the proposed tax increase, categorized under Entertainment Tax rules, could jeopardize the sector’s essence.

Currently, the Bali Tourism Agency is collaborating with spa and tourism business associations to compile a comprehensive study on the spa industry’s current state. They aim to present a compelling case to the Acting Governor of Bali for reconsideration.

Pemayun emphasizes that Balinese Spa should ideally fall under the health and wellness category rather than entertainment. He fears that the bali spa 40% tax burden could lead to a decline in Balinese Spa popularity, affecting both local therapists and the overall tourism experience.

The unexpected tax hike has left spa businesses in Bali shocked, especially since the increase has not been adequately communicated. Dr. Yoga Iswara, Chairman of the Indonesian Hotels and General Manager Association (IHGMA) Bali, expresses concern over the lack of proper socialization, emphasizing the burden this places on the tourism industry.

The proposed tax increase not only threatens the spa businesses but also raises concerns about its impact on local therapists and the potential decline of the spa industry in Indonesia. Businesses are urging a reconsideration of the tax hike, emphasizing the need for a judicial review to maintain the status of spas as wellness establishments rather than entertainment venues.

In the face of these challenges, the Balinese spa industry seeks government intervention to delay the tax implementation and initiate a thorough review of the tax structure. The hope is that a collaborative effort between government officials, business stakeholders, and associations will lead to a favorable resolution, preserving the unique identity and cultural significance of Balinese Spa.