Bali Government Confirms Distribution of Tourism Tax Funds

Bali, Indonesia – The Bali provincial government has announced that it has commenced distributing the first round of funding generated from the recently implemented Bali Tourism Tax Levy. This initiative, aimed at preserving Balinese culture, protecting the island’s natural landscape, and enhancing tourism infrastructure, was launched in February 2024. ## Overview of the Bali Tourism Tax Levy

The Bali Tourism Tax Levy is a mandatory fee imposed on all international tourists visiting the island, amounting to IDR 150,000 (approximately USD 10). Tourists can pay this fee upon arriving at Bali Airport, through the online platform LoveBali, or via the corresponding mobile application. Despite its mandatory nature, recent data reflects that only about 35% of international visitors have complied with the payment, a situation attributed to insufficient communication regarding the initiative, weak enforcement measures, and challenges in the payment process.

Fund Allocation and Future Projections

Bali’s Governor Wayan Koster disclosed that the levy has thus far generated IDR 318 billion (around USD 19.2 million), a figure that falls short of the anticipated budget of IDR 450 billion needed to adequately support the 1,500 traditional village governments across the province. Governor Koster stated, “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.”

While the governor confirmed that the funds have been allocated to traditional village leaders, specifics concerning the distribution amounts were not disclosed. He emphasized that the funds should strictly be utilized in line with the objectives of the Bali Tourism Tax Levy—namely, the preservation of Balinese culture, environmental protection, and infrastructure development.

Plans for Improved Compliance

Governor Koster outlined future measures aimed at boosting compliance among international tourists. He announced intentions to roll out new campaigns and policies, presented in a circular letter, aimed at ensuring that traditional villages receive their targeted IDR 450 billion by 2025. Furthermore, an additional IDR 50 billion is expected to be allocated to each village by 2026. In an effort to facilitate the payment process and enforce compliance, Koster disclosed plans to engage with airlines to integrate the tourism tax payment system into their check-in procedures. The Bali Tourism Office, chaired by Tjok Bagus Pemayun, is currently in discussions with airlines to implement this system, potentially preventing travelers from obtaining boarding passes for their departing flights if they have not paid the tax.

Summary

The successful implementation and distribution of the Bali Tourism Tax Levy mark a significant step in the local government’s efforts to sustain the island’s cultural and environmental resources amid growing tourist numbers. As Governor Koster and his administration seek to enhance the awareness and compliance of this initiative, the broader implications will hinge on the effectiveness of their outreach and engagement efforts with both tourists and tourism stakeholders.

Stakeholders are encouraged to monitor these developments closely as the government positions itself to optimize funding and support for Bali’s infrastructure and cultural heritage in the coming years.