Bali is contemplating a significant shift in its tourism policy. The island’s authorities are considering the introduction of a daily tourism tax for all international visitors. This move aligns with a long-standing aspiration to attract more 'high-quality tourists'—a term often linked to visitors who contribute significantly to the local economy while respecting cultural and environmental sustainability. But what would this daily tax mean for Bali’s tourism industry, and is the island ready for such a model?
This move aligns with a long-standing aspiration to attract more 'high-quality tourists'
Inspired by Bhutan’s Success
The idea of a daily tourism tax is heavily inspired by Bhutan’s well-organized tourism strategy. Bhutan requires international visitors to pay a Sustainable Development Fee (SDF) of USD 100 per day, in addition to their visa costs. This fee supports the kingdom’s long-term sustainability initiatives, such as environmental conservation, infrastructure development, and free healthcare and education for Bhutanese citizens.
Bali’s policymakers, including prominent figures like former Indonesian Tourism Minister Sandiaga Uno and senator Ni Luh Djelantik, have frequently praised Bhutan’s tourism model. However, implementing such a system in Bali presents a unique set of challenges. Unlike Bhutan, where tourism numbers are intentionally kept low to maintain exclusivity, Bali thrives on large-scale tourism, welcoming millions of visitors annually. This fundamental difference raises questions about whether such a tax structure can be smoothly integrated into Bali’s already complex tourism ecosystem.
The Challenges of Enforcement
Bali has already introduced a mandatory tourism levy for international arrivals, but reports indicate that enforcement has been weak. Less than 40% of international visitors have reportedly complied with this fee due to inadequate communication and enforcement mechanisms. Given these challenges, one might question whether the island is prepared to introduce an even more complex daily tax system.
Another concern revolves around transparency. In early 2025, Indonesia’s Ombudsman announced an investigation into the Bali Tourism Tax Levy, following concerns regarding mismanagement. If authorities struggle to effectively collect and allocate a one-time payment, the introduction of a daily fee could further complicate the system unless strict accountability measures are put in place.
Potential Impact on Tourists and Businesses
Introducing a daily tourism tax could have mixed consequences for Bali’s economy. On one hand, it may encourage more responsible and sustainable tourism, ensuring that visitors contribute directly to the island’s infrastructure and cultural preservation. On the other hand, an added financial burden might discourage budget-conscious travelers, a segment that plays a vital role in supporting local businesses such as homestays, independent tour operators, and small restaurants.
Bali is a destination that attracts a wide range of visitors—from luxury travelers who frequent high-end resorts to backpackers seeking affordable experiences. A daily tax might deter certain groups while benefiting others, potentially reshaping the island’s tourism demographic. For instance, high-end tourists may be unfazed by an additional cost, but budget travelers who stay for extended periods could reconsider their plans.
A Shift Toward Exclusive Tourism?
If the tax is implemented, it could signal a strategic move toward making Bali a more exclusive destination, similar to Bhutan. While exclusivity can enhance the quality of tourism, it also risks alienating a significant portion of travelers who have contributed to Bali’s growth over the decades. Given that tourism is the backbone of Bali’s economy, even a slight reduction in visitor numbers could impact local businesses and communities that depend on consistent tourist traffic.
The Road Ahead
As Governor Wayan Koster enters his second term, a fresh wave of tourism policies is expected. While discussions about a daily tourism tax are gaining momentum, there is still much to consider. How will the tax be enforced? Where will the revenue be allocated? Will tourists see tangible benefits from their contributions?
For now, visitors to Bali must continue paying the Tourism Levy through the LoveBali platform before their departure. Whether the island will successfully transition to a Bhutan-inspired daily tax system remains uncertain, but what is clear is that such a move would redefine the future of Bali’s tourism industry.
The question remains: is Bali truly ready for such a shift, or will this initiative become another policy struggling with implementation? Only time will tell.
