Frustrations Grow As Bali Tourism Taxes Yet To Fund Meaningful Change 

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It has been nine months since Bali launched the Tourism Tax Levy, and as updated figures show that more than 60% of international arrivals have been dodging the fee, both local leaders and tourists are growing increasingly frustrated that no meaningful change can be seen as of yet. 

Tourism businesses and sector leaders are calling on the Bali Provincial Government to be more reciprocal when it comes to both the Bali Tourism Tax Levy and funds generated by the mandatory Hotel and Restaurant Tax (PHR).

Local leaders have expressed their concerns to the media that “no significant contribution to the tourism sector itself in terms of promotional efforts and pro-tourism programs.”

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Local tourism union leader Putu Winastra told reporters that in Badung Regency specifically, “Even though you got such a large amount of funds from tourism. This is very ironic. On the one hand, you use the funds we generate for development, but you do not return them to tourism itself.”

Winastra is the chairman of the Bali Association of Indonesian Tours and Travel Agencies, also known as ASITA. He told reporters that ASITA members receive 40% of all visitors to Bali and are the highest contributors to the Hotel and Restaurant Tax, yet, as a group, they feel they are not receiving sufficient support in return. 

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He explained, “The fact is that there is no support for this promotion. Even if there is, it is not significant. Can you imagine what is obtained from PHR is several trillion, but how much is the promotional fund allocated?”

Winastra suggested that ideally, at least five percent of PHR Badung will be returned to the tourism sector. Included in it are foreign promotional programs and international events such as BBTF, which will be held in June 2025 at the Bali International Convention Center, Nusa Dua.

He commented, “At least five percent of PHR is ideal. In one year, there will be so many events all over the world. Including in Bali, this BBTF needs to be supported as one of the international tourism promotion events that was born in Bali.”

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Winastra’s comments are timely as Bali prepares to head to the ballot to elect a new provincial governor on the 27th of November.

The next governor of Bali will have a huge impact on the tourist sector and play a pivotal role in the overall experience tourists have on the island.

The Bali Tourism Tax Levy is, after all, a legacy of ex-Governor Wayan Koster, who is in the running on the 27th of November, along with Made Muliawan Arya, often known by his nickname, De Gajah. 

While contributions made by tourists to the Hotel and Restaurant Tax via the venues they choose to support were always set to be absorbed into the provincial budget, revenue generated by the Bali Tourism Tax Levy was promised to be invested in three specific areas: conserving culture, nurturing nature and leveling up tourism infrastructure across the province.

Yet, nine months later, neither tourists nor Bali residents have been informed as exactly how and when these funds will be spent. 

In comments made earlier in the year, the Acting Governor of Bali, Sang Made Mahendra Jaya, suggested that 70% of the first round of funds from the Bali Tourism Tax Levy could be used to tackle the ever-increasing waste management issued on the island, though no set plan has been revealed.

While leaders have not yet published a budget for Tourism Tax Levy funds, the Head of the Bali Tourism Office wants to find new ways to help prevent tourists from dodging the mandatory fee.

All international tourists to Bali are required to pay the IDR 150,000 fee, and leaders have been working to devise ways to ensure payments are made.

This has included threats of huge fines and prison time for those found to be dodging the fee, as well as spot checks at top attractions to scan the QR-code voucher that proves payment has been made.

Tourists can pay the Bali Tourism Tax Levy online via the Love Bali website or app, or on arrival at the international terminal at I Gusti Ngurah Rai International Airport.