After introducing a new tourist tax in February this year, Bali officials are already considering significantly increasing the levy.
Currently, all international tourists are required to pay IDR 150,000 (around $15) for the Bali tourism tax.
However, some Bali leaders want to raise the levy to as high as IDR 800,000 (approximately $75) to help preserve the local culture and ecosystem and enhance infrastructure by attracting more high-value tourists and weeding out unruly visitors – many of whom make headlines for their bad behaviour.
This is based on an assumption that higher-spending travellers are also better-behaved travellers.
Speaking to reporters, the chair of the Bali Regional People’s Representative Council (DPRD), Ida Gede Komang Kresna Budi, said he would like to see the tax grow to US$50 ($75).
“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 [revise] the regional tourism levy regulation,” he stated.
“There is this problem because usually, those who act up are members of the bottom [low-spending tourists]. This must be anticipated.”
According to The Bali Sun, Budi added that the current levy was not being well administered.
“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,” he remarked.
This statement is supported by claims that most Australian travellers were not paying the new tourist levy two months after it was introduced.
Balinese tourism expert Taufan Rahmadi also backed the proposal to hike the tax to help lure higher-quality visitors, citing several popular destinations that had increased traveller tariffs to better manage tourism.
“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 explained.
“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.
“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.”
However, Rahmadi also pointed to instances where higher taxes resulted in fewer visitors, so warned that Bali needed to consider the negative impacts such a move could have. Some Southeast Asian nations, like Thailand, have no tourism taxes.
“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,” he said.
“It is important for Bali to implement this policy well, including educating tourists and consistent enforcement of regulations.”
Bali Tourism Office Head Tjok Bagus Pemayun told media last week that a review of the levy is already underway, the Bali Sun reported.
In April, the ABC reported that three in five (60 per cent) Aussie visitors weren’t paying the current tax, with many travellers unsure of how to actually pay for the levy.
“I knew about the tourist tax, but nobody asked us to pay it – $15 is not much and if it goes to good use, it’s fine to pay,” Rachel Fisher, a frequent Bali visitor, told the broadcaster.
In 2023, the island’s authorities began issuing visitors with a good behaviour guide for tourists in an attempt to curb bad behaviour.
Earlier this year, Bali also introduced new auto-gates for travellers with an e-Visa on Arrival (e-VOA) as well as tourists from ASEAN (Southeast Asian) nations with electronic passports.
