Bali’s Tourism Tax Reaches One-Year Milestone, Collecting $31 Million

Bali, Indonesia – As of February 14, 2024, the Indonesian island of Bali has marked one year since the introduction of a mandatory tourism tax, which has reportedly raised approximately $31 million to date. This tax, levied at 150,000 IDR (approximately $15) per tourist, was implemented with the aim of promoting sustainable tourism practices while simultaneously protecting Bali’s rich culture, customs, and environment.

During the past year, Bali experienced a surge in international visitors, with over 6.3 million tourists visiting the island, of which more than 1.5 million were from Australia. According to Statista, Australia has become the leading source market for foreign tourist arrivals in Bali.

Funding for Sustainability Initiatives

Indonesian Tourism Minister Sandiaga Uno previously stated that the collected levy would go towards ensuring the island’s ecological sustainability and maintaining the integrity of Balinese culture. “In the future, the collection of [tourist levy] fees in Bali will protect nature and keep it clean and sustainable,” he told news.com.au last year. He emphasized the importance of these funds in enhancing cultural tourism services, improving public transportation infrastructure, and facilitating the preservation of local customs and traditions.

Challenges in Levy Collection

Despite these efforts, recent statistics reveal that only 35% of the international tourists who visited Bali paid the levy. If compliance were more widespread, the total collections could have reached as much as IDR 950 billion (approximately $95 million). Tjok Bagus Pemayun, Head of the Bali Tourism Office, acknowledged the challenges in enforcing the levy, primarily due to a lack of awareness among travelers regarding the fee.

To improve compliance, Pemayun announced plans to collaborate with airlines, where travelers who have not paid the Tourism Tax Levy before departing from Bali will be unable to receive their boarding passes. He noted that the initiative would involve partnerships with airlines under the International Air Transport Association (IATA). “If they want to return to their country and have not paid, then they cannot get a boarding pass. They have to pay first,” he explained.

Future Plans and Legislative Proposals

Currently, both tourists and locals visiting Bali are required to pay a $48 e-Visa on Arrival fee, in addition to the $15 tourism tax. However, some local lawmakers are advocating for an increase in the levy to as much as $75 per day. Gede Komang Kresna Budi, a member of the Bali Regional Legislative Council, voiced concerns that the current fee is too low, making Bali appear as an inexpensive tourist destination.

Proposals for a daily fee akin to Bhutan’s Sustainable Development Fee of $157 have emerged, with advocates suggesting that a higher cost could help control tourist numbers and select those who are willing to contribute more significantly to the local economy.

Ongoing Efforts to Regulate Tourism Behavior

In response to previous instances of disruptive behavior among tourists, Indonesia has urged Australian visitors to respect local customs and explore other parts of the country beyond Bali. Efforts have included the release of an official “dos and don’ts” guide, the establishment of a hotline for reporting misbehaving tourists, and the creation of a special task force to monitor foreign activities on the island.

Payment Process Simplified for Tourists

Tourists can easily pay the tourism levy through the "Love Bali" website, where they must enter personal details such as their passport number and arrival date. Upon successful payment, a “Levy Voucher” is emailed to them, which must be presented at quarantine checkpoints while entering Bali. Although payment counters are available at I Gusti Ngurah Rai International Airport and Benoa Harbour, online payment is encouraged for efficiency.

As Bali continues to navigate the complexities of sustainable tourism, the tourism tax is expected to play a crucial role in funding initiatives that preserve the island’s unique cultural and environmental heritage.