The Bali Provincial Government is planning to introduce a daily tax for foreign tourists, following Bhutan’s tourism model, which focuses on attracting high-value visitors while ensuring sustainable tourism.
According to Wayan Puspa Negara, Head of the Bali Marginalised Tourism Sector Alliance, Bali needs a selection system similar to Bhutan’s, ensuring that visitors contribute positively to the island’s tourism sector.
He emphasised that it is time to prioritise high-quality tourism by improving destinations and human resources that support the industry.
The initiative, backed by Bali Governor Wayan Koster since 2023, aims to regulate the increasing influx of tourists. Overtourism has become a pressing issue for Bali, and the government believes a daily tourist tax can help mitigate its negative effects.
This proposal is gaining traction, with former Indonesian Minister of Tourism and Creative Economy, Sandiaga Uno, also having discussed a similar idea. Additionally, Bali Senator Ni Luh Djelantik has been vocal online, urging Indonesian leaders to adopt Bhutan’s highly controlled tourism approach.
Bhutan’s Tourist Tax Policy
Since September 2022, visitors to Bhutan have been required to pay a daily tax of USD 100 per person, known as the Sustainable Development Fee.
In 2024, Bhutan’s Prime Minister, Tshering Tobgay, announced plans to increase the tourist tax from USD 100 to USD 200 per day, with the new rate set to take effect in 2027.
Bali’s Existing Tourist Tax
Bali has already implemented a tourist tax through Regional Regulation (Perda) Number 6, Year 2023. The regulation, which took effect on February 14, 2024, requires each foreign tourist visiting Bali to pay IDR 150,000.
Learning from Bhutan and the Maldives
Indonesian President Joko Widodo (Jokowi) recently highlighted that the country is not maximising its tourism potential. He believes Indonesia should take inspiration from Bhutan and the Maldives, which have successfully developed their tourism sectors by focusing on high-value, low-volume visitors.
“For example, there is a country like Bhutan that carries the concept of high-value but limited tourism, aka high value and low volume. Bhutan has well-preserved nature and traditions, but it does not have much oil and gas natural resources that deposit a lot of income,” Jokowi explained.
He further elaborated on Bhutan’s tourism model: “They do not open their country to as many tourists as possible, they only take a certain volume given a quota and take upper-market tourists. So high value and low volume.”
Jokowi made these remarks while addressing regional leaders at the 2024 National Meeting of the Association of Indonesian Regency Governments (APKASI) at JCC Senayan, Central Jakarta, on 10 August 2024, as reported by Detiknews.
With this move, Bali is set to redefine its tourism strategy, focusing on sustainability, quality visitors, and long-term economic benefits.
Cover: Photo by Nadezhda Moryak/Pexels
