Billy Bagus
Aug 01, 2025
As tourism in Bali continues its strong post-pandemic rebound, the provincial government is turning its attention to a critical financial gap: undercollection of the island’s mandatory international tourist tax. The tax, set at IDR 150,000 (approximately USD 10) per person, was introduced in February 2024 to fund environmental, cultural, and infrastructure initiatives across the province. However, more than half of visiting tourists reportedly fail to make the payment, even as the regulation has now been in effect for over 17 months.
Despite more than six million international arrivals in 2024, revenue generated from the Bali Tourism Tax Levy remains far below its potential.
A Discrepancy Between Potential and Reality
Bali’s 2025 regional budget allocates IDR 400 billion in expected revenue from the tourism levy. While this represents an increase from the 2024 realization of IDR 317.88 billion, government analysts argue that the true revenue potential is closer to IDR 950 billion based on current arrival trends.
The gap is not insignificant. With Bali’s overall regional financial planning facing a shortfall, officials are now proposing a revised collection target of IDR 747 billion. This adjusted figure is positioned to cover nearly all of the region’s projected loan-based budget deficit, amounting to IDR 347 billion.
This shift reflects a broader strategy among emerging tourism economies to strengthen fiscal independence by optimizing revenue from their most valuable export: travel.
Tax Compliance Becomes a Policy Focus
The tourism levy is mandatory for all international visitors, including minors, and must be paid before departure from the province. The official payment platform, LoveBali, offers both web and app-based options. Tourists can pay for multiple travelers in one transaction by entering email addresses and passport details.
Notably, the system has limitations that have impacted uptake. The site does not function properly when accessed via VPN or ad-blockers, and many tourists report not being informed of the requirement prior to arrival.
As a fallback, payment can be made upon arrival at I Gusti Ngurah Rai International Airport, where a dedicated counter facilitates in-person transactions. Successful payments generate a QR code voucher, which must be kept on hand throughout a visitor’s stay. This voucher can be requested at any time by local authorities as proof of compliance.
Third-Party Partnership in the Pipeline
To strengthen enforcement and streamline payment, the provincial government is preparing to partner with a third-party operator. Though no official vendor has been confirmed, the partnership is expected to include incentive-based compensation to boost performance.
Outsourcing the system is seen as a way to improve user experience, simplify transactions, and ensure better communication with incoming travelers. This approach mirrors a broader trend in public-private partnerships being used to solve tourism management challenges in destinations with rapidly growing visitor numbers.
Implications for Travelers and the Market
For tourists, the shift means a likely increase in visibility, messaging, and accessibility of the tax process. Whether arriving in Bali for a luxury retreat, a surf holiday, or a cultural tour, international visitors should prepare to engage with the tax system at some point during their journey.
For the government, enforcing the Bali Tourism Tax Levy more effectively is more than just an administrative exercise. It is a strategic move to ensure that Bali’s global popularity translates into long-term value for its communities, environment, and economy.
