Bali’s Tourism Tax Levy: A Year of Challenges and Plans for Improvement

Bali, Indonesia – It has been a little over a year since Bali implemented its Tourism Tax Levy, a mandatory fee of IDR 150,000 ($10) aimed at preserving the island’s culture and nature while enhancing tourism infrastructure. However, the initiative has faced hurdles, with only 35% of international visitors complying with the tax obligation, raising questions about its effectiveness.

Financial Insights

Since the commencement of the levy on February 14, 2024, the Bali Provincial Government has collected IDR 317 billion, approximately $20 million. In 2024, the island welcomed 6,333,360 international tourists, all of whom were subject to the fee. However, had compliance been at the desired level, total revenues could have surged to IDR 950 billion.

Recent figures from January 2025 to March 6, 2025, indicate a further IDR 46.55 billion has been raised through the levy. Yet, officials have not provided clear details on how these funds will be allocated or utilized to benefit the island’s tourism ecosystem or its natural resources.

Increased Awareness and Compliance Efforts

Tjok Bagus Pemayun, Head of the Bali Tourism Office, addressed the media recently, outlining plans to improve awareness and compliance concerning the tax. He emphasized the importance of effectively "socializing" the levy to ensure international tourists understand their obligations when visiting the province.

"One of the challenges in implementing this levy is the lack of information amongst tourists. Therefore, socialization will continue to be improved so that this policy can run more effectively,” Pemayun stated.

To make payment procedures easier, Pemayun mentioned an aim to expand the payment methods available to tourists. Currently, visitors can pay the levy at the counters at the I Gusti Ngurah Rai International Airport or online through the LoveBali app or website.

Implementation of Strict Compliance Measures

To further increase revenue from the tourism levy, Pemayun proposed collaborating with airlines so that passengers without proof of payment will not receive a boarding pass to leave Bali. "If it can be paid before arriving in Bali, that’s very good. If they want to pay after arriving in Bali, it’s also fine. But 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.

Discussions on a Bhutan-Style Tourism Tax

While efforts to improve the current levy are underway, some leaders on the island are advocating for a more dramatic shift towards a Bhutan-style model of tourism taxation. In Bhutan, visitors are required to pay a daily Sustainable Development fee, which contributes to the country’s strict sustainable tourism measures. However, this proposed shift has sparked debate as Bali traditionally operates on a mass tourism model, and enforcing high daily fees could greatly affect the local economy.

Currently, the Bali Tourism Tax Levy is applicable per visit, and tourists are issued a QR-code voucher as proof of payment. This fee is separate from the Visa on Arrival fee of IDR 500,000 for 30 days, which all visitors must pay.

Moving Forward

Bali’s ongoing efforts to increase compliance with the Tourism Tax Levy include enhanced advertising and educational campaigns aimed at international travelers. Tourists planning to visit the island can expect more information about the levy in the lead-up to their trips. It is important to note that the fee applies to all travelers, including children, and must be paid for individually.

As the Bali government continues to refine its tourism policies, the balance between revenue generation and sustainable tourism practices remains critical for the future of this iconic destination.

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