Holidaymakers Unclear On How Bali Tourism Tax Funds Will Be Spent

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Seven months after the introduction of the Bali Tourism Tax Levy, local politicians have not yet confirmed the exact details about how the funds will be spent.

The Bali Tourism Tax Levy was initially intended to be spent on conserving culture, nurturing nature, and leveling up infrastructure, but specific project plans were not made public. 

The Bali Tourism Tax Levy is a mandatory fee for all international holidaymakers and short-stay social visitors on the island.

The fee is IDR 150,000, and payment must be made before departure from the island. Tourists can pay on the LoveBali app, the LoveBali website, at the dedicated counter at I Gusti Ngurah Rai International Airport, or with the help of registered travel agents and hotels.

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Despite the fact that payment of the tax is a legal requirement for international visitors to the province, data shows that as many as 60% of eligible arrivals have been dodging the fee since it came into effect in February.

Leaders have noted that more could be done to promote the tax to incoming tourists and to offer more options for ease of payment.

However, many key figures in the province agree that the fundamental reason why so many tourists have been paying the fee is that there are no punishments or legal ramifications for not paying. 

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The Acting Governor of Bali, Sang Made Mahendra Jaya, has called for a review of the legislation and for sanctions to be introduced for non-payment. Suggested sanctions include fines of up to ten times the official fee or a week in prison. 

While most tourists who have paid the fee have been happy to do so, many regular and returning Bali tourists have been skeptical about where and how the funds will be spent.

With no clear published project proposals or prospective budgets, many have questioned whether the funds would simply be absorbed by the provincial government’s annual budget without being allocated separately to specific initiatives as outlined in the policy, making it hard to hold leaders accountable.

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Political leaders have mentioned some specific projects in passing. The Acting Governor of Bali, for example, previously told reporters that 70% of the initial revenue would be spent on dealing with Bali’s mountain waste management crisis. 

Now that the tourism levy has generated IDR 211.8 billion in tax revenue, government leaders have confirmed where the funds will be sent first.

Speaking to reporters, the Regional Secretary of the Bali Provincial Government, Dewa Made Indra, confirmed that funds have been included in the Regional Revenue and Expenditure Budget (APBD) of the Bali Provincial Government.

Indra told reporters, “It has been included in the APBD. There is already an allocation in the APBD. There is for culture, there is for the environment, and there is for garbage.”

When reporters pushed for more details, Indra was unable to provide specifics. He shared, “The money has been entered into the APBD. In the APBD, there is an income plan and a spending plan. What is spent on this…I don’t know the allocation.”

The Head of the Bali Tourism Office, Tjok Bagus Pemayun, confirmed that IDR 211.8 billion has been generated but agreed that the issues regarding the large number of tourists dodging fees are under review.

On the positive side, he noted, “80 to 90 percent of the payments that were made [were completed] before they left for Bali; this means that our socialization is actually quite successful.” 

With Bali set to welcome a record number of international tourists in 2024, not all tourism leaders in Bali feel that it is the foreign tourism market that can be relied upon to bolster the local economy.

House Of Representatives Member for Badung, Wayan Puspa Negara, told reporters that domestic tourism should not be overlooked in favor of the international market. 

He spoke of the regional revenue projection for Badung, which is at IDR 53 billion, largely based on the spending habits of the targeted 7 million international tourists.

Negara said, “This projection needs to be strengthened, and it should not focus on the 7 million foreign tourists. We have much bigger potential, namely domestic and local tourists. Domestic tourists who are projected to reach more than 10 million by the end of 2024 should be our consideration.”