Bali Proposes Higher Tourist Tax to Improve Visitor Quality

Bali Proposes Higher Tourist Tax to Improve Visitor Quality

The Bali Regional Legislative Council (DPRD-Bali) has proposed increasing the foreign tourist tax from Rp. 150,000 (around US$10) to Rp. 750,000 (around US$50). This measure aims to improve the quality of visitors to the island and address issues related to poor behavior and public order disruptions.

Recent months have seen a surge in media reports highlighting problems caused by the unruly behavior of some foreign tourists. These incidents have led to a call for comprehensive solutions, including the proposed tax hike.

I Gede Komang Kresna Budi, chairman of Commission II of the DPRD-Bali, noted that the current Rp. 150,000 tax has not been effective in curbing poor behavior among international visitors. He emphasized that the low tax rate contributes to Bali’s reputation as a cheap tourist destination, which attracts “cheap tourists” often linked to bad behavior.

“The Rp. 150,000 tax is too low, making Bali seem like a cheap destination. We plan to increase it to $50. Bali should not be sold cheaply,” Kresna Budi said during a plenary session on June 19.

The proposed increase in the tourism tax is expected to significantly enhance the quality of tourists visiting Bali. Additionally, the increased revenue could benefit Bali’s education and health sectors. Kresna Budi hopes that immigration services at Bali’s airport will efficiently collect the higher tax.

Since its introduction on February 14, 2024, the current tourism tax collection has been inefficient, with only a minority of foreign visitors paying the Rp. 150,000. The poorly organized tax collection system gathered only Rp. 117 billion from February 14 to June 12, 2024.

Kresna Budi also proposed allocating part of the tax revenues to improve security and public order by creating a tourism police force. “We are communicating with the police to form a tourism police that specifically handles tourism issues. Some of the funds can be allocated to support police preparedness,” he added.

To implement the proposed higher tax rate of Rp. 750,000, Provincial Regulation No. 6 of 2023 must first be revised and reviewed by the DPRD-Bali.

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