Bali to Impose Penalties on Foreign Tourists Evading Levy

Bali to Impose Penalties on Foreign Tourists Evading Levy

Denpasar – The Bali Provincial Government plans to impose penalties on foreign tourists who fail to pay the mandatory USD 10 tourist levy. Sanctions will range from fines to minor criminal charges.

“Sanctions will be introduced for foreign tourists who do not pay the levy, including fines or penalties,” said Bali’s Acting Governor, Sang Made Mahendra Jaya, at the Bali Regional House of Representatives (DPRD) building on Monday, June 24, 2024.

Mahendra mentioned that these sanctions will be included in the regional regulations. The regulation in question is Bali Regional Regulation No. 6 of 2023 on Levies for Foreign Tourists for the Protection of Balinese Culture and Natural Environment.

According to Mahendra, the revision of Regulation 6/2023 will also address incentives for tourism operators who assist in enforcing the levy.

“The levy regulation is still under discussion; we need to revise the regulation. There will be incentives for tourism operators who help with enforcement,” Mahendra stated.

Previously, members of the Bali DPRD proposed increasing the foreign tourist levy from USD 10 to USD 50. The aim is to expand the fiscal space for Bali’s budget.

Since the levy was implemented on February 14, only 40 percent of foreign tourists have paid the fee, resulting in the Bali Provincial Government losing approximately IDR 186 billion in potential revenue over the past four months.

Levy Collection Shortfalls

Despite the initial anticipation, the collection of the foreign tourist levy has not met expectations. In three months, the Bali government has only collected IDR 124 billion. This figure is significantly lower than projected, given the high volume of tourists visiting the island.

The provincial government hopes that stricter enforcement and potential regulatory revisions will improve compliance and boost revenue. The levy is intended to support cultural preservation and environmental protection in Bali, ensuring that the island remains an attractive and sustainable destination for future generations.

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