Bali prepares to launch tourism tax

DENPASAR, Bali, 18 October 2023: Bali’s new tourism tax comes closer with authorities confirming a 4 February 2023 launch date for all international visitors to pay USD10 (IDR150,00), according to Bali.com, an official channel linked to the Indonesian government.

Bali Tourism Department chief executive Tjok Bagus Pemayun officially disclosed this development to the media earlier this week.

Set at IDR 150,000 per person per visit (approximately USD 10), the tax will apply to foreign visitors of all ages when arriving at the island’s airport on international and domestic flights. 

For those flying into Indonesia via other cities like Jakarta, Yogyakarta, Medan, or Labuan Bajo, and subsequently taking domestic flights to Bali on or after 14 February 2024, the tourism tax will also be applicable upon arrival at I Gusti Ngurah Rai Airport’s domestic terminal. The tax will impact around 15,000 arriving passengers daily based on today’s passenger traffic.

Authorities have affirmed that the revenue will be invested in environmental conservation, nature preservation, cultural enhancement, and overall quality improvement. The bulk of the funds will likely be used for waste management and to reduce landfill garbage, which is becoming a severe problem for the island. 

By the end of the year, Bali will probably welcome around 4.5 million international visitors. That would give waste management a fund of USD 45 million in tax revenue to improve the system and end landfill with its fire risk.

Hitting travellers with a tourism tax is popular with governments, and linking it to sustainable tourism and improving the environment tends to silence critics. It’s for a good cause, officials tell us. Bali is not alone in introducing a tourism tax. Here are some examples from around Asia. 

Bhutan

Bhutan lowered its “Sustainable Development Fee” from USD200 per visitor per night to USD100 last September, saying the money would offset the carbon generated by visitors.

Japan

Visitors to Japan pay a 1,000 yen departure tax to expand and enhance the country’s tourist infrastructure to improve infrastructure and tackle over-tourism.

Malaysia:

The Malaysian government has reinstated the Tourism Tax (TTX) of MYR10 per room per night for all foreign passport holders for hotel stays effective from 1 January 2023.

Thailand:

The Ministry of Tourism and Sports will introduce a THB300 tourist tax sometime in 2024 once a suitable collection and transparent channel is established. The tax will provide tourists with accident insurance but it could also be invested in projects to restore tourism infrastructure.

(Source: Bali.com / Ministry of Tourism and Creative Economy Kompas.com)