Bali Tourism Tax Shake Up Will Make It Harder For Travelers To Avoid Payment

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Leaders in Bali have committed to changing the way the Bali Tourism Tax Levy is enforced to prevent tourists from dodging the fee and to help ensure that the funds generated are spent in an ‘optimal and accountable way’.

The Bali Tourism Tax Levy was introduced in February 2024, but figures show that less than 40% of international travellers have made the mandatory payment. 

Leaders in the Bali House Of Representatives have agreed to updates to Regional Regulation Number 6 of 2023 concerning Levies for Foreign Tourists. The Bali Tourism Tax Levy has been a hot topic of conversation since its introduction.

Leaders across the province have been vocal that though the policy is deemed essential to help generate funds to conserve culture, protect the environment, and level up infrastructure on the island, enforcement of the policy has been lacking, and the specific use of funds is not clear. 

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All that is about to change. All political parties gave backing to updating the Bali Tourism Tax Levy Regional Regulations to ensure it has optimal efficiency and impact for both tourists and the people of Bali.

One of the key updates to the policy is to strengthen its enforcement, and work with an external provider so that all tourists pay their IDR 150,000 contribution, and that in turn Balinese people benefit more greatly from the presence of tourism on the island. 

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One of the main sticking points of the policy to date is that it has not been well communicated to tourists, nor is it obvious where payment should be made. Since there are no sanctions or punishments in place for those who do not pay, there is also very little incentive for tourists to pay, other than a moral obligation. 

Senator Suwirta told the House “We, the PDI Perjuangan Faction, the Bali Provincial DPRD agree to the amendment to the Regulation on Foreign Tourist Levies for the Protection of Bali’s Culture and Natural Environment, as long as the formulation aspects of the changes are able to strengthen legal certainty, maintain harmony and conformity, and guarantee the sustainability of the objectives of the Draft Regulation.”

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On behalf of the Gerindra-PSI Faction Kade Darma Susila, called for the Bali Tourism Tax Levy to be overseen by an independent supervisory body to ensure that funds are generated and spent with accountability.

He called for the provincial government “to carry out the function of coaching and supervision of the Levy for Foreign Tourists. The Gerindra-PSI Faction has examined the Draft Regional Regulation and proposes that it include the formation of an independent Supervisory Institution.”

The Bali Deputy Governor I Nyoman Giri Prasta, told the House “On behalf of the Governor and the Bali Provincial Government, we appreciate the Bali DPRD factions in relation to the general views of the factions that were conveyed earlier. This is all constructive in order to create a good legal system.”

Deputy Governor Prasta confirmed that the provincial government will seek to work with a third party provider to operate the Bali Tourism Tax Levy policy to make it more streamlined for tourists to make their fee, and to understand where their money is being spent. During the first year of the policy being in place Bali welcomed 6.3 million international tourists, but only 2.1 million arrivals paid their fee. 

He added “We have to look at the technology, how real-time, the issue of usage. This has only one goal, for the welfare and happiness of the Balinese people. This is one of the good role models that we need to respond to well.”

The Association of the Indonesian Tours and Travel Agencies (ASITA) have confirmed that they have been asked by Governor Koster and the provincial government to work with Bali Airport and sea ports to implement stricter enforcement of the Bali Tourism Tax Levy. 

Putu Winastra from the Association of the Indonesian Tours and Travel Agencies told reporters that better communication of the Bali Tourism Tax Levy is the first action step. He shared, ”We will increase the number of signs in several places that are the point of view of tourists. So apart from the airport, we will also fill the signs in the tourism objects that remind tourists to pay [tax].”

Tourists can expect to be asked to present their QR-code Bali Tourism Tax Levy voucher more frequently during their trips to Bali. Especially at top attractions, at the airport and at sea ports. At present, payment can be made on the LoveBali website or app, or on arrival at Bali’s I Gusti Ngurah Airport. In the coming months further changes may be made to the payment process to make it easier for tourists pay their tax seamlessly.