Bali’s Tourism Tax Faces Challenges: Government Urges Airlines to Help Raise Awareness
The Bali Provincial Government is confronting difficulties in enforcing its Foreign Tourist Levy, a mandatory tax imposed on international visitors. Despite the tax’s introduction in February 2024, compliance rates have been disappointingly low, leading local officials to appeal to international airlines for assistance in raising awareness among passengers.
Underwhelming Compliance Amid Limited Awareness
The Foreign Tourist Levy requires all foreign visitors to pay 150,000 Indonesian Rupiah (approximately $10 USD) upon entering Bali. However, as of the end of 2024, only about 32% of international tourists had paid the tax. Authorities attribute this low compliance largely to a lack of passenger awareness, exacerbated by many airlines failing to inform travelers about the levy during the booking process, at check-in, or onboard flights.
Out of 37 airlines flying into Denpasar, Bali’s main international gateway, only five currently notify passengers about the tourist tax, according to reports cited by the local media outlet NusaBali. This has prompted Bali’s provincial government to intensify efforts to engage airlines more proactively.
Calls for Onboard Announcements and Enhanced Pre-Departure Communication
To bridge the information gap, Bali officials have requested that airlines incorporate announcements about the Foreign Tourist Levy over cabin public address systems before landing. They are also urging carriers to include information about the tax within pre-departure communications and to display payment links prominently on their websites. These measures aim to ensure that travelers learn about their obligation to pay the tax well before arriving in Bali.
The government emphasizes that aviation is a crucial missing link in enforcement. Because the national government, rather than Bali’s provincial authorities, controls immigration, Bali cannot mandate that immigration officers check for tax payment receipts upon entry. Without airline cooperation, visitors often remain unaware of the levy, undermining the province’s revenue collection efforts.
Expanding Collection Channels Through Tourism Sector Involvement
With airlines slow to take up the cause, Bali has updated its regional regulations (from No. 6/2023 to No. 2/2025) to involve hotels, tour operators, and travel agents more directly in tax collection. These entities are now authorized to collect the levy and receive a 3% commission as an incentive. Officials hope this decentralized approach will broaden information dissemination and improve compliance early in tourists’ visits.
Additionally, Bali is coordinating with the Indonesian national government to integrate its “Love Bali” payment system with the nationwide “All Indonesia” platform. This integration aims to better link the levy payment to the immigration arrival process, although monitoring at immigration checkpoints remains unlikely due to jurisdictional limitations.
Issues with Scam Websites and Enforcement Gaps
The government also warns travelers about fraudulent websites posing as the official tax payment portal, many of which charge inflated fees—sometimes three times the actual amount. These scam sites frequently appear prominently in Google search results, adding confusion for tourists attempting to comply.
Although paying the levy on arrival remains an option, enforcement is minimal. Airports lack dedicated checkpoints for the tax, and personnel are not authorized to verify payment, allowing many travelers to bypass the fee without consequence.
Revenue Shortfall Amid Growing Tourist Arrivals
Bali collected IDR 330 billion (approximately $20 million USD) from the foreign tourist tax in early 2025, falling short of its targeted IDR 380 billion ($23 million USD). As Bali heads into its peak tourist season, officials stress that airline participation is vital to closing this gap and sustaining funding derived from tourism.
Looking Beyond Bali
Bali is not alone in facing challenges related to tourism levies. Other popular destinations, such as New Zealand, have recently adjusted their tourism tax policies in response to similar enforcement and compliance issues.
The Bali Provincial Government continues to engage with the Indonesian Ministry of Transportation in efforts to encourage airlines flying into Denpasar International Airport to support the tax’s implementation by actively informing passengers.
As Bali strives to improve revenue collection from its foreign tourist levy, closer collaboration between airlines, travel industry players, and government authorities appears essential to raising passenger awareness and improving compliance.
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