Why Bali’s new tourist tax could deter travel to island, especially as Thailand is drawing visitors with lower alcohol taxes

On top of visa fees, from February 14 visitors to Bali will pay arrival tax of around US$10. If they visit nearby islands they have to pay again on their return

The tax will raise money to help ease traffic and waste problems, but it could drive visitors to Thailand, which is lowering alcohol tariffs to boost tourism

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A packed beach in Seminyak, Bali. The Indonesian island will soon introduce a tourist tax to help tackle problems associated with mass tourism. But some say the move could drive visitors to other, cheaper Southeast Asian destinations. Photo: Bloomberg

Published: 1:45pm, 16 Jan 2024Updated: 11:21am, 20 Jan 2024

Indonesia’s holiday island, Bali, is rolling out its new tourist tax as part of an effort to tackle its biggest problems – traffic and rubbish.

From February 14, visitors to Bali will have to pay the 150,000 Indonesian rupiah tax – about US$9.60. That’s in addition to the 500,000 rupiah charge for a 30-day visa.

The tourism tax applies to every visitor, including children. Those who make a side trip to neighbouring islands such as the popular Gili Islands, Lombok or Java have to pay again on their return to Bali. This does not apply to trips to Nusa Penida, Nusa Lembongan or Nusa Ceningan, as these three islands belong to the province of Bali.

Some observers have questioned whether the new procedure will lead to long queues at arrivals areas, but according to the head of the local tourism authority, Tjok Bagus Pemayun, the processing should not take more than 23 seconds per person.

A stall selling artisanal goods in Seminyak, Bali. Photo: EPA-EFE

Officials also hope most tourists will in future pay online in advance of travelling to Bali and have said credit card payments will be accepted.

While the costs for single travellers might be bearable, families with children may look for cheaper holiday destinations in Southeast Asia, some on social media have commented.