Bali Lovers Could Look For More Affordable Vacations In Thailand As Leaders Discuss Tax Increase 

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Bali lovers are worried that they will have to start looking into alternative vacation destinations if provincial leaders go ahead with ideas to raise the newly introduced Bali Tourism Tax Levy to USD 50 per person.

Currently, the IDR 150,000 fee (USD 10) is only being paid by around 40% of eligible tourists. 

As leaders in Bali are continuing to discuss whether to increase the Bali Tourism Tax Levy, annual holidaymakers to the island are starting to put their feelers out to see whether there are comparable destinations that could offer better value for money should the price increase come into effect. 

At present, tourists visiting Bali must pay for their visa on arrival, which costs IDR 500,000 per person, and the Bali Tourism Tax Levy, which costs IDR 150,000.

If the tax levy is increased to the amount leaders have suggested, to a further IDR 800,000, tourists will be investing IDR 1,300,000 (USD 80) before they’ve even been allowed out of the airport. 

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For the average family of four going on vacation to Bali, this would add USD 320 to their travel budget compared to pre-pandemic when the 30-day visa on arrival was free for most holidaymakers and there was no additional tourism tax.

This kind of price increase would make Bali a no-go vacation destination for most low and even mid-budget holidaymakers.

However, in the eyes of some Bali leaders, this is kind of the point. They feel that there is a correlation between the behavior of tourists, the level of respect they afford the island and its culture, and the budget that tourists have to spend. 

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Both the Acting Governor of Bali, Sang Made Mahendra Jaya, and the Head of the Bali Tourism Office, Tjok Bagus Pemayun, have confirmed that a study is underway to establish whether the tax increase for tourists is viable. 

Pemayun said that work is underway to establish the best steps moving forward. However, the Tourism Office and Provincial Governments are under pressure from those who feel an increase in the Bali Tourism Tax Levy is necessary.

Pemayun explained, “We have to do another study, not just all at once, so that we can see where the figure comes from. There must be a calculation of whether the figure is reasonable so that it doesn’t burden tourists. This increase is not a matter of whether it is right or not related to efforts to improve the quality of tourists.”

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As Bali looks to increase the tourism tax to deter badly behaved foreigners, Thailand has formally scrapped plans to introduce a similar policy.

If the increase in tax does go ahead in Bali, Thailand will be the next port of call for many Bali lovers forced to seek a vacation unencumbered by increasing fees.

The tourism tax in Thailand was set to see all tourists arriving by air pay a 300 baht (USD 8.20) tourism tax contribution.

The Prime Minister of Thailand, Srettha Thavisin, confirmed that the policy had been scrapped on the 8th of June during a visit to Chiang Mai.

In a statement subsequently issued on the Government Public Relations website, the government explained, “The fee … was abandoned with the rationale that its elimination could encourage higher tourist spending in other areas, thereby providing a more substantial boost to the economy.”

The Thai Government has also been making policy decisions that support tourism growth in simple and impactful ways.

From this month, the free visa on arrival is now available to tourists from 93 countries, an increase from the 53 nationalities who were previously eligible.

Tourists from these 93 nations will now be granted a 60-day stay on arrival. 

Pending the results of the study by the Bali Tourism Office, it remains the case that the Bali Tourism Tax Levy costs IDR 150,000 per tourist visiting Bali Province (unless except), including children.

The fee can be paid on arrival at I Gusti Ngurah Rai International Airport or online prior to arrival or departure from Bali on the LoveBali website or app.