Bali saw a record number of international arrivals in 2025, but most of its visitors are still neglecting to pay the province’s tourist tax, says the island’s leader.
According to Bali Governor I Wayan Koster, the island earned Rp369 billion (approximately AU$33 million) from the tourist tax last year, a small rise from 2024’s takings.
However, tax revenue fell well below the targeted earnings of Rp500 billion (around $44 million) as outlined in the province’s regional budget, Indonesian news agency Antara reported.
That is likely due to the low uptake of the tax, which was introduced nearly two years ago.
Speaking to reporters in Bali, Mr Koster said the levy was only paid by one in three (35 per cent) of visitors. Despite this, it was still a small improvement on the 32 per cent who paid in 2024.
“This is a new local policy, and we are already seeing progress,” he said.
The Governor said new incentives have helped lift collections. Since August 2025, he said 150 accommodation providers have joined the initiative, earning a three per cent commission on guest levies.
Koster added that the province plans to lift compliance by improving communication and working more closely with immigration, airports and airlines.
The tax, charged at Rp150,000 (approximately $13) per visitor, was implemented to help preserve Balinese culture and protect the island’s environment.
Just a few months after it launched, some Bali leaders flagged raising the levy to as high as IDR 800,000 (approximately $75) to help manage the growing number of tourists and attract more high-value tourists.
More than 7 million international holidaymakers visited Bali in 2025, led by Australians. Indonesia, thanks to the island province, was the most visited country by Australian travellers last year.
KARRYON UNPACKS: Bali’s tourist tax still isn’t landing with most visitors. For Aussie advisors, it’s a reminder to flag the levy early, manage expectations and help clients travel responsibly on Indonesia’s island.
