Why the new Bali tourism tax levy has many holes in the system

Thousands of tourists are reportedly dodging a new Bali rule.

Many tourists visiting Bali are said to be avoiding the island’s new tourism tax fee, which officials say is due to “flaws in the system”.

The 150,000 Indonesian rupiah ($15.80) tourist levy was put into place on February 14 in the hopes it would bring in over $18 million in 2024.

However, tourism officials have noted it has not been successful because about 60 per cent of visitors to the vacation hotspot are not paying the levy, news.com.au reports.

As a result, 5000 tourists are paying the tax per day, which is a lot fewer than officials had originally thought, reports the Bali Sun.

Wayan Puspa Negara, a top tourism leader, revealed this week that the recently introduced tax system “has many holes”. However, other stakeholders are now slamming the system rather than holding Bali tourists accountable.

“At the airport, there are no payment counters that intensively charge fees,” Negara told the Bali Sun.

“So far the payment system uses an application, and the existing offers can only attract a few foreign tourists so we need to add more counters [at the airport].”

Negara suggested airlines take some accountability with the new system and check if tourists have paid the levy before arriving in Bali. He also said major tourist attractions on the island should be doing more to ensure visitors are adhering to the new tax.

“Hotels, restaurants and tours attractions can all be end points, where foreign tourists are checked whether they have paid or not.”

Tjok Bagus Pemayun, the head of the Bali Tourism Department, last week said tourism officials were confident visitors knew of the recently introduced system.

However, Puspa Negara disagreed, saying the Government needed to do more “intense and massive outreach” to ensure people were aware of the system.

“Especially in countries that are the largest source of foreign tourists to Bali,” he said.

Tourism police units have been stopping tourists since March 26 to check visitors have paid the levy.

“We will target tourist attractions in Bali including Uluwatu, Tanah Lot, Ulun Danu Beratan and also Tampaksiring,” Pemayun said last week, the Bali Sun reports.

The new tourist tax system has been supported by leading Balinese stakeholders, including the Indonesian Tourism Industry Association.

Officials have been checking if foreigners are carrying their tourism tax levy voucher, which is emailed to them from LoveBali following payment.

The voucher features a QR code that needs to be presented to officers.