Provincial leaders are debating whether to increase the price of the newly introduced Bali Tourism Tax Levy.
The tax was introduced in February 2024 and requires all international holidaymakers and tourists to pay IDR 150,000 to help preserve culture and nature in Bali and level up the tourism infrastructure on the island.
In light of an apparent rise in the number of foreigners behaving badly in Bali, leaders on the island have restarted conversations about how best to deter unruly foreigners and attract more high-quality visitors to the province.
One method that has been tabled this week by tourism leaders is to hugely increase the tourism tax fee.
Leaders and stakeholders from the tourism sector are calling for a massive hike the the fee, and are arguing for the tax to be raised from IDR 150,000 to IDR 500,000 and in some cases IDR 800,000 which is around USD 50.
Speaking to reporters, Chairman of Commission II of the Bali Regional People’s Representative Council (DPRD), Ida Gede Komang Kresna Budi, said clearly that he wants to see the fee increased to the equivalent of USD 50 to help plug the gap in provincial fiscal leeway.
Budi told reporters, “We want people who are of higher quality to come. We are trying to consult with the police to form a tourism police that specifically handles tourism…That is the basis for us wanting to make changes to the revision of the regional tourism levy regulation.”
He shared his concerns that he does not want tourists coming to Bali feeling like they can brazenly violate the law and disrespect local culture and norms.
Budi explained, “There is this problem because usually, those who act up are members of the bottom [low spending tourists]. This must be anticipated.”
He also noted that at present, the way in which the Bali Tourism Tax Levy is being promoted and operated for tourists is not as easy as it should be.
He noted, “Currently, we cannot find a suitable place at the airport due to a lack of coordination with the airport and Immigration as a supporting stakeholder. We hope that with coordination from all parties, everything can be maximized.”
Budi’s motion has been seconded by tourism expert Taufan Rahmadi, who says that this huge hike in the Bali Tourism Tax Levy would be an essential strategic step to help improve the quality of tourism on the island.
Rahmadi told reporters, “Revenue from this tariff can be allocated to environmental conservation, infrastructure development, and improving tourist services. We can learn from Bhutan, which has successfully used high tariffs to fund environmental and cultural preservation efforts.”
He added, “Venice, Italy, has succeeded in reducing crowds by imposing entry fees. Bali can implement a similar policy to maintain a balance between the number of tourists and environmental capacity and infrastructure.”
Rahmadi argued, “Seychelles has shown that high rates can attract tourists who have more respect for the environment and local culture. This could be applied in Bali to reduce the number of ‘naughty tourists’ who often do not respect local rules and culture.”
He continued, “Several countries, such as Egypt and the Caribbean, experienced a decline in the number of tourists after increasing entry fees. Bali needs to monitor the impact carefully to ensure the local tourism industry is not negatively impacted.”
Rahmadi concluded, “It is important for Bali to implement this policy well, including educating tourists and consistent enforcement of regulations. This is an important step in maintaining the beauty and sustainability of Bali as a sustainable and quality tourist destination.”
Most tourists arriving in Bali feel pretty neutral about making an IDR 150,000 tax contribution as part of their visit; on top of paying IDR 500,000 for their visa on arrival, increasing the tourism levy fees to USD 50 would hugely impact potential travellers’ decision to visit the island.
This isn’t just speculation by political leaders and tourism commentators, the Head of the Bali Tourism Office, Tjok Bagus Pemayun, told the media on Friday 21st June that a review of the fees is already underway and an increase is being seriously considered.
With destinations like Thailand offering visa-free travel, and no tourism tax levies, tourists simply looking for a beachside vacation in Southeast Asia will surely be swayed by budget constructions, over destination-specific offerings.
Source: The Bali Sun
