Bali Seeks Airline Cooperation to Boost Compliance with Troubled Tourist Tax
The Bali Provincial Government is intensifying efforts to improve compliance with its Foreign Tourist Levy, a mandatory tax imposed on international visitors, by urging airlines operating flights to Denpasar to actively promote awareness of the charge. This call to action follows disappointing results since the tax’s introduction in February 2024, with only a fraction of tourists reportedly paying the levy as required.
Low Payment Rates Highlight Enforcement Challenges
The Foreign Tourist Levy mandates all foreign visitors to Bali to pay 150,000 Indonesian Rupiah (approximately $10 USD) prior to entering the island. However, data sourced from local news outlet NusaBali reveals that by the end of 2024, a mere 32% of eligible international tourists had fulfilled this payment obligation. The shortfall has raised concerns over the effectiveness of current collection mechanisms.
Local officials attribute the lackluster compliance in part to limited communication from airlines. Of the 37 carriers flying to Bali’s Ngurah Rai International Airport, only five have been identified as informing passengers about the tax during ticket booking, check-in, or onboard announcements. The officials emphasize that many travelers remain unaware of the levy’s existence, leading to widespread non-payment.
Railroaded by Immigration and Border Control Limitations
Enforcement complications are compounded by jurisdictional constraints. Immigration processes in Indonesia fall under the purview of the national government rather than regional authorities, restricting Bali’s capacity to require proof of levy payment upon entry. Accordingly, customs and immigration officials at the airport are neither authorized nor equipped to check for tax compliance, allowing many travelers to bypass payment undetected.
To bridge the gap, Bali’s government is calling on airlines to incorporate mention of the levy into their pre-departure communications. This includes displaying payment links on airline websites and, crucially, delivering announcements via the aircraft’s public address system before landing in Bali, thus giving passengers clear instruction and motivation to pay the levy.
Expanding Levy Collection Channels Beyond Airlines
With airlines slow to engage, Bali has revised its regional regulations to broaden the responsibility for levy collection across other tourism stakeholders. An update from Regional Regulation No. 6/2023 to No. 2/2025 now enables hotels, tour operators, and travel agents to collect the tourist tax directly. These entities are offered a 3% commission as an incentive, encouraging them to inform and collect payments from their guests and clients early in the travel process.
The provincial authorities are also coordinating with the Indonesian government to integrate Bali’s Love Bali payment platform with the national All Indonesia system. While this linkage could streamline payment tracking alongside immigration data, it would not grant immigration officers direct enforcement authority regarding the levy.
Combating Fraudulent Payment Portals
Another obstacle facing tourists is the proliferation of scam websites that impersonate the official payment portal for the levy. Some illicit sites advertise heavily on search engines like Google and charge inflated fees, at times triple the official amount, misleading travelers looking to comply with the levy. Although the tax may be paid upon arrival, airport staff lack procedures or authority to verify payments, reducing the effectiveness of this option.
Revenue Targets and the Road Ahead
As of early 2025, Bali has collected about 330 billion IDR (roughly $20 million), falling short of its 380 billion IDR ($23 million) target. With the peak tourist season approaching, officials stress that enhancing cooperation with airlines and expanding collection channels is critical to closing this revenue gap.
The Bali provincial government remains committed to collaborating with the Indonesian Ministry of Transportation to secure airline participation, recognizing aviation’s pivotal role in informing travelers before they set foot on the island.
Global Context
Bali’s struggles with tourist tax enforcement reflect a broader trend among popular destinations aiming to harness tourism revenues for sustainable development. For example, New Zealand recently increased its visitor levy as part of wider tourism management efforts.
As Bali refines its approach to the Foreign Tourist Levy, the success of these initiatives hinges on coordinated efforts between government, airlines, and the wider tourism industry to ensure travelers are adequately informed and compliant.
Featured Image: Wikimedia Commons
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