Bali Government Confirms Distribution of Tourism Tax Funds

Date Published: March 28, 2025

In a significant development for the Balinese economy and cultural preservation, the local government of Bali has confirmed the successful distribution of funds derived from the Bali Tourism Tax Levy. This levy, initiated in February 2024, was designed to support the conservation of Balinese culture, protect the island’s natural landscapes, and improve tourism infrastructure.

Background on the Bali Tourism Tax Levy

The Bali Tourism Tax Levy imposes a mandatory fee of IDR 150,000 (approximately USD 10) on all international tourists arriving in Bali. Payment can be made upon arrival at Bali Airport, through the official LoveBali website, or via the accompanying mobile application. Despite the obligation, it has been reported that only around 35% of international arrivals have complied with the levy over the past year. Challenges with communication, enforcement, and ease of payment have been cited as key reasons for this low compliance rate.

Financial Overview

In its inaugural year, the Bali Provincial Government managed to collect IDR 318 billion (around USD 19.2 million) from the tourism tax. However, this amount falls short of the projected IDR 450 billion budget necessary for proper allocation among Bali’s 1,500 traditional villages. Each village is expected to receive substantial funding to aid in their operational and cultural preservation needs.

Governor Wayan Koster emphasized the need for enhanced efficiency moving forward, asserting, “In Bali there are 1,500 traditional villages, which means it requires a budget allocation of IDR 450 billion. So from the first year’s foreign tourist levies, it is still lacking. For that, in 2025, we will optimize it.”

Fund Allocation and Future Plans

While the governor confirmed that the funds have been released to traditional village governments, specific details regarding the amount each village will receive have yet to be disclosed. The allocated funds are mandated to be used in accordance with the goals of the Bali Tourism Tax Levy, specifically targeting the preservation of culture and environmental protection, alongside infrastructure improvements.

Moreover, Governor Koster has announced plans to implement new policies aimed at enhancing compliance among tourists. He mentioned the drafting of a circular letter that would ensure traditional villages achieve their financial targets, projecting an additional IDR 50 billion for each village by 2026. ### Enhanced Compliance Measures

To bolster adherence to the tourism tax, policymakers, including the Head of the Bali Tourism Office, Tjok Bagus Pemayun, are exploring partnerships with airline companies. Proposed measures may involve integrating the tax payment process into flight check-in systems, mandating that passengers settle their tourism tax before receiving their boarding passes.

Local political figure Agung Bagus Pratiksa Linggih highlighted that many airlines serving Bali are already members of the Société Internationale de Télécommunications Aeronautiques (SITA), suggesting a streamlined process where tourists could pay the tax when purchasing their flight tickets or upon arrival.

Conclusion

As Bali continues to recover its tourism sector, the proper allocation and management of the funds generated from the tourism tax levy remain paramount. With planned enhancements to communication and compliance measures, the Bali government hopes to ensure that all tourists participate in the financial support of the island, ultimately benefiting both its cultural heritage and the living conditions within its communities. Bali’s continuing success will hinge on the effective utilization of these funds to address the pressing needs of its traditional villages.