Bali Tourism Leaders Back Move To Fine Tourists Who Dodge Tax

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Top tourism leaders in Bali have backed the idea of issuing sanctions against tourists who fail or refuse to pay their Bali Tourism Tax Levy.

The mandatory fee came into effect in February, but only 40% of eligible visitors have been making their contribution. 

Speaking to reporters, the Chairman of the Indonesian Tourism Industry Association (GIPI) Bali, Ida Bagus Agung Partha Adnyana, said that sanctions could be applied provided that the levy system is clear and transparent.

Ida Bagus Agung Partha Adnyana told the press, “Indeed, there needs to be sanctions. If there are sanctions, that’s fine.”

“In fact, it’s better to go ahead and [define] what kind of model. For example, if they don’t pay, what are their rights and obligations? The important thing is that we level the collection system first and then talk about its use.”

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Creating a system that works efficiently is perhaps the biggest hurdle facing the Bali Provincial Government and the Bali Tourism Office at this time.

In order to be able to fairly issue sanctions to tourists who have genuinely failed or refused to make their Bali Tourism Tax Levy payment, the authorities must be able to implement a system whereby making the payment is straightforward, clearly communicated, and managed fairly. 

Adnyana has given his backing to the idea to issue sanctions or fines for those tourists who fail to pay the tourism tax, but he is also calling on the government to simply integrate the tourism tax levy into existing policies so that tourists neither feel the burden of an increased cost, nor have to go out of their way to make a payment. 

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Adnyana said, “My [other] suggestion is to stick to the PHR (Hotel and Restaurant Tax); it’s good that you don’t see it, for example, the extra 2-3 percent you don’t see or feel it when paying.”

Adnyana is on the same page as the Deputy Chair of PHRI Badung, I Gusti Ngurah Rai Suryawijaya, who also spoke to reporters this week about the potential to increase the Bali Tourism Tax Levy fee and introduce sanctions for those who don’t pay up.

Suryawijaya confirmed that he, too, feels that sanctions are an appropriate measure for those who don’t pay their tourism tax but that a study would be necessary before any changes are made. 

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He told reporters, “So far, the levies have not been maximally implemented. Before carrying out sanctions, it is also necessary to improve and review cooperation with several stakeholders.”

He wants to see the system better communicated to tourists and make it easier for tourists to pay before they arrive.

Suryawijaya disagreed, however, with political leaders who are keen to see the Bali Tourism Tax Levy increased from IDR 150,000 (USD 10) per person to IDR 800,000 per person (USD 50).

He told reporters, “If we use 50 USD, it means very high, and that will be less competitive with other Asian countries. We have to be careful.”

“Don’t forget to revive the people’s economy; that’s what is necessary, not just the high end. For me, Bali is a luxury and affordable tourism destination.”

His words of warning are substantiated. Competing destinations like Thailand have just made it even easier and more affordable for tourists to go on vacation.

Thailand has just increased the number of countries eligible for the visa on arrival to over 90, and increased the length of stay on a tourist visa on arrival to 60 days. Thailand has also scrapped plans to introduce a tourism tax levy. 

As it stands tourists wishing to visit Indonesia on a tourist visa on arrival must pay IDR 500,000 for a 30-day stay, this visa can be extended one time for an additional fee.

Tourists visiting Bali Province must also pay IDR 150,000 as their Bali Tourism Levy Tax contribution.