Bali Considering Setting Upper Limits On Airfare Tariffs For Tourists

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Over the last few years, Bali lovers have been discussing whether or not Bali is a cheap travel destination anymore.

With the prices of visas, tourism taxes, and hotels rising, as well as the cost of activities, tourists are concerned about the value Bali offers as a travel destination. 

Increasing flight tickets is something that, too, has been a concern for tourism leaders and government ministers in Indonesia.

Flight prices are one of the most influential factors for tourists planning a trip, whether domestically or internationally, and putting a cap on airfare tariffs can help ensure travelers can afford to jet off into the sunset. 

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Indonesia’s Minister of Transportation, Budi Karya Sumadi, is exploring opportunities to revise the upper limit tariff (TBA) rules for airplane tickets after Eid 2024.

In a press statement, Minister Sumadi said that the upper limit tariff on airfares in Indonesia is calculated based on factors such as aviation fuel prices, leasing, and labor costs.

He said, “If these factors go down, it (TBA) will go down. If these factors go up, it can’t…This has to be realistic.”

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Minister Sumadi confirmed, “We will indeed evaluate after this Eid.” He added that airlines must also do their part and adhere to the airfare policies already in place.

He explained “We remain consistent that airlines should comply with the upper limit rates, if they exceed them, we will penalize them.”

Indonesia’s Minister for Tourism and Creative Economies has also confirmed that he is in talks with President Joko Widodo to address rising domestic airfares. This issue is affecting both domestic and international tourists.

Domestic tourists have found themselves with no option but to layover abroad before visiting Bali. And the increasing domestic flight ticket fares are potentially discouraging for Bali lovers who are considering combining a vacation in Bali with another Indonesian destination. 

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A new upper limit on airfares would help keep flight ticket prices in an affordable range for most international tourists.

This would come as a serious relief for Bali lovers who return to the island every year on vacation and who are finding the cost of travel increasing beyond belief.

Before the pandemic, the average Australian, European, or North American tourist was granted visa-free travel to Indonesia and received 30 days free on arrival.

Now, passport holders from over 90 countries, including Bali’s most frequent visitors, must apply for a visa on arrival, which costs IDR 500,000 per 30-day stay. 

On top of this, Bali lovers must now pay the mandatory tourism tax levy.

This fee is IDR 150,000 and is set to be spent on preserving culture and the environment and improving tourism services for visitors.

This means that the average Bali vacation has increased by USD 165 for the average family of four.

While many tourists have said they don’t mind paying the tourism tax fee, for just as many families, these increased fees are making them question whether Bali is a vacation option anymore.

Formal discussions about setting an upper tariff limit will be tabled after the Eid holiday.

The whole of Indonesia is preparing for the big annual holiday that will be observed from Tuesday, April 9th, until Monday, April 15th.

Tourists are reminded that business and office closures will be in affect during this time. 

Bali Immigration Offices have already confirmed that all foreigners who have visas set to expire must submit their applications for extension as early as possible.

The statement from Ngurah Rai Immigration explains, “For foreigners whose permits expire on April 6-15, 2024, are expected to apply for an extension of residence permits no later than April 5th, 2024, at 12.00 WITA. Services will reopen Tuesday, April 16th, 2024.”