Leaders in Bali have confirmed that the first round of funding sourced from the Bali Tourism Tax Levy has been distributed.
The Bali Tourism Tax Levy was launched in February 2024 and was designed to help fund the preservation of Balinese culture, protect the natural landscape, and level up tourism infrastructure.
Bali’s Governor Wayan Koster has confirmed that the first round of funding generated by the Bali Tourism Tax Levy has been handed over to traditional village leaders throughout Bali.
The Bali Tourism Tax Levy is a mandatory fee for all international tourists in Bali and costs IDR 150,000. The fee is payable upon arrival at Bali Airport, online at the LoveBali website, or on the app of the same name.
While the fee is mandatory, data from the last 12 months shows as little as 35% of international arrivals have been making the contribution. This has been attributed to poor communication around the policy, poor enforcement of the policy, and issues with the ease of payment for tourists.
Even though the Bali Provincial Government raised just a fraction of what it predicted in its first year of the policy being in place, it still managed to raise IDR 318 billion, around USD 19.2 million.
Bali is managed as nine regencies; Denpasar, Badung, Gianyar, Tabanan, Karangasem, Bangli, Jembrana, Buleleng and Klungkung, across which are 1,500 traditional village governments.
Governor Koster told reporters “In Bali there are 1,500 traditional villages, which means it requires a budget allocation of IDR 450 billion. So from the first year’s foreign tourist levies, it is still lacking. For that, in 2025, we will optimize it.”
While Governor Koster confirmed that the funds have been released to traditional village governments, he did not give any indication as to the specific allocations or budgets. Though he noted that the funds must be spend accordance with the Bali Tourism Tax Levy policy; to be spent on preservation of Balinese culture, protect the natural landscape and levelling up infrastructure.
He confirmed that he will be implementing new campaigns and policies to ensure that all international tourists pay their Bali Tourism Tax Levy fee.
He confirmed that a new set of policies is being drawn up, in the form of a circular letter, that will be implied too, so that in the 2025 tax year traditional villages receive their target IDR 450 billion, and that by 2026 each village will receive a further IDR 50 billion.
Governor Koster explained, “In the future, with the enactment of the new regional regulation, sources from foreign tourist levies will be specifically for assistance to traditional villages, all of them.”
He added, “I will communicate with the consulates of friendly countries in Bali that comply with this circular, including paying the [Bali tourism tax].”
Governor Koster concluded, “If you don’t pay, you won’t get good service at tourist destinations.”
It is not only Governor Koster who is working to ensure all tourists pay their fees but the Head of the Bali Tourism Office too.
Tjok Bagus Pemayun and other political leaders have confirmed to the media that they are in talks with airlines to integrate the flight check-in process with the Bali Tourism Tax Levy system. If plans go ahead, tourists won’t be able to gain access to their boarding pass for their departure flight from Bali if they have not paid their fee.
Speaking last week local politician Agung Bagus Pratiksa Linggih, who is the Chairman of Commission II of the Bali DPRD, explained “This [Société Internationale de Télécommunications Aeronautiques] is a collection of international airlines and already exists all over the country.”
“Around 60-80 percent of airlines that fly to Bali are already members of SITA, so the payment will be like this, when people buy tickets to Bali at the airline, there will be a call to pay [tourism tax], then they can pay when buying tickets or later when they are in Bali.”
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