Bali Struggles to Enforce Tourist Tax, Now Seeks Airline Support Through In-Flight Announcements
Denpasar, Bali – November 28, 2025
The Bali Provincial Government is facing significant challenges in collecting its Foreign Tourist Levy and is now urging international airlines to assist in raising awareness among travelers. Despite its introduction in February 2024, the mandatory tourist tax has seen limited compliance, with only about one-third of international visitors reportedly paying the levy by the end of last year.
Tourist Tax Compliance Remains Low
The Foreign Tourist Levy requires all foreign tourists entering Bali to pay 150,000 Indonesian Rupiah (approximately $10 USD) prior to arrival. However, according to data reported by local media, only 32% of visitors have complied with the payment requirement as of late 2024. This shortfall reflects systemic difficulties in enforcement and communication of the tax’s existence.
Local officials have revealed that out of 37 airlines operating flights into Bali’s Denpasar International Airport, just five actively inform passengers about the levy. Most carriers fail to mention the tax during booking, check-in, or onboard announcements, leaving many travelers unaware of the obligation.
Airlines Urged to Play a More Active Role
Recognizing that aviation is a critical channel to reach incoming tourists, the Bali government is calling on airlines to integrate information about the levy into their pre-departure communications. Proposals include displaying payment links on airline websites and making clear public address announcements onboard flights before landing in Bali.
Officials argue that because immigration enforcement is controlled at the national level—beyond Bali’s provincial jurisdiction—it is not feasible for Bali to require immigration officials at the border to check levy payment receipts. Thus, airline cooperation is seen as essential to ensuring passengers are properly informed ahead of arrival.
Expanding Collection Points Beyond Airlines
In response to limited airline participation, Bali recently updated its regional regulation governing the levy. The amended Rule No. 2/2025 now authorizes hotels, tour operators, and travel agents to collect the levy directly, offering a 3% commission as an incentive. This measure aims to broaden the reach of educational outreach and encourage payment earlier in the travelers’ journey.
The local government is also collaborating with Indonesia’s national authorities to integrate the “Love Bali” payment system with the country’s broader All Indonesia platform. Such integration could streamline payment processes alongside immigration arrival procedures, though immigration personnel will still not have a direct role in enforcing levy collection.
Challenges from Scam Websites and Limited Airport Enforcement
Bali’s tourist tax initiative faces further complications due to the proliferation of fraudulent websites charging inflated fees for payment. Many scammers advertise prominently on search engines like Google, misleading travelers and potentially deterring compliance.
While payment on arrival remains an option for visitors, airport checkpoints dedicated to verifying levy payment are currently non-existent, and airport staff lack authority to enforce the tax. This enforcement gap contributes to ongoing revenue losses and undermines the initiative’s effectiveness.
Financial Impact and Importance During Peak Season
Bali raised approximately 330 billion IDR (around $20 million USD) from the levy in early 2025, falling short of the 380 billion IDR ($23 million USD) target. With the busy tourist season underway, the government emphasizes that enhanced cooperation from airlines and the broader tourism industry is crucial to closing the compliance gap and securing sustainable funding.
Global Context
Bali is not alone in seeking to implement or increase taxes on tourists. Other popular destinations, including New Zealand, have also recently increased their tourism levies as part of strategies to manage visitor impact and generate revenue for local development.
As Bali’s regional government continues to navigate the complexities of tax enforcement on incoming tourists, the call for airlines’ active engagement in passenger education highlights the critical intersection between aviation and tourism policy. The coming months will be a test of whether enhanced communication efforts and expanded collection channels can improve compliance rates and ensure fair contribution from international visitors.
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