Bali plans tourism tax hike to improve visitor behaviour, local services

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ANN/THE STRAITS TIMES – Bali’s provincial legislative council has suggested increasing the tourism tax from IDR150,000 (SGD12) to approximately USD50 (SGD68) to deter unruly tourists from visiting the popular Indonesian resort island, as reported by Kompas.

“I think the current tax of IDR150,000 is too low, which gives the impression that Bali is a cheap destination,” said Bali’s council leader Kresna Budi, after a council meeting on June 19. “Why should Bali be marketed cheaply?” he questioned, pointing out that Indonesians often pay millions of rupiah for visas to visit countries such as the United Kingdom.

Budi emphasised that Bali should attract “higher quality” tourists who respect local laws and customs, instead of those who blatantly disregard them. “The issue typically arises from lower-spending tourists who are more likely to misbehave,” he explained, as reported by The Bali Sun.

He suggested that part of the increased tax revenue could be allocated to establishing a tourism police unit specifically to address tourist-related issues. The proposal is currently being considered by Bali’s acting governor.

Kresna also said he hoped the immigration authorities at Bali’s Ngurah Rai International Airport could collect the tax more efficiently, adding that a percentage of the tax collected could be allocated to immigration and airport authorities.

Since the implementation of the IDR150,000 tourist tax on February 14, only 40 per cent of an estimated 2.2 million inbound visitors to Bali have paid up, according to the island’s tourism agency.

Plans to install automated scanners at the airport fell through because of space constraints, said Bali tourism chief Tjok Bagus Pemayun.

He noted that many foreigners could have avoided the tax payment by entering Bali from the airport’s domestic arrival gate, as enforcement at the international arrival section is tighter.

Funds from the tourism tax were intended to be channelled towards the improvement of the island’s education and health sectors.

Bali welcomed 5.24 million foreign visitors, or 45 per cent of overall foreign visitors to Indonesia, in 2023.

People launch a giant kite during the Bali Kite Festival at Mertasari beach in Sanur, Bali, Indonesia. PHOTO: AFP