Bali considers introducing a daily tourist tax

A holiday on the island of Bali could soon become more expensive due to a planned daily tourist levy. Island authorities, seeking to curb the negative effects of mass tourism, are exploring the possibility of introducing a tax similar to Bhutan's "Sustainable Development Fee" of around $100.

According to Wayan Puspa Negara, head of the local alliance of marginalised tourism representatives and a Badung regency lawmaker, the new tax would let Bali be more selective about tourists, favouring those who spend more. He compared this approach to US visa policy, the UK, and other European countries.

Mass tourism is fuelling local discontent

Although tourism generates more than 60% of the island's revenue, local residents are growing weary of traffic jams, unchecked construction, and inappropriate tourist behaviour. For example, in 2023 a Russian blogger was deported for offensive behaviour toward a sacred tree, and dozens of foreigners were expelled for working illegally. These incidents have intensified calls for stricter tourism rules.

Authorities have previously discussed restrictions on motorbike rentals for tourists and a freeze on building new hotels and clubs. In addition, a one-time fee of 150,000 Indonesian rupiah (about €9) was introduced in February 2023 to fund environmental projects. Now the possibility of raising the fee is being reconsidered, to reduce the flow of unwanted visitors and attract wealthier tourists.

Global experience with tourist taxes

Similar taxes are being introduced elsewhere too: Edinburgh plans to charge a levy for infrastructure development, and Italy is considering raising tourist fees to combat mass tourism. However, not every region has seen success — in Barcelona, for instance, such taxes have not reduced local residents' negative attitude toward tourist flows.

Thailand also plans to introduce a mandatory fee of 300 baht (€8.50) by the end of 2025, though the collection mechanism is still under discussion.

Bali's proposal reflects a broader global trend toward finding a sustainable approach to tourism. The effectiveness of such measures, and their impact on tourist flow, remains to be seen.