Bali Aims to Boost Tax Compliance with New Strategies and Airline Cooperation, Get the Details Here

Published on November 28, 2025

Bali, one of the most visited tourist sites in the world, has had multiple complications with its foreign tourist levy. Bali charges its visitors $10 USD, or 150,000 IDR, before entering the island in order to support the island’s infrastructure that supports tourism and protect the environment. However, as of late 2024, the tourism department stated that 32% of the expected visitors have paid the levy, which has led the Bali provincial government to request the airlines to assist in meeting one of the Bali tourism goals, compliance of the levy.

The Bali foreign tourist levy is intended to support the balance of tourism ‘over’ Bali and to support the initiatives that sustain tourism. To continue the good support of sustainable tourism, the levies help to protect Bali from the impacts of ‘over’ tourism. However, the lack of compliance to pay the levy is impacting the tourism goals of Bali. In good faith, the levy’s compliance is impacting Bali’s expected revenue as many of the tourists are unaware of the requirements.

Airlines Urged to Take Active Role in Promoting the Tourist Levy

The Bali government is urging international airlines to play a more active role in publicizing the Foreign Tourist Levy. Of the 37 airlines flying into Denpasar, only five have been found to inform passengers about the tax. According to local officials, the lack of communication from airlines—during the booking process, check-in, or onboard announcements—is a major roadblock in raising awareness.

With many passengers unaware of the tax, compliance has stalled. The government hopes that by making pre-departure communication a priority and incorporating the levy into airline systems, passenger awareness and tax payment will increase significantly. Airlines are being encouraged to announce the tax over the cabin PA system before landing, as well as include information on their websites and booking confirmations.

Airlines as a Missing Link in Enforcement

The challenge of enforcing the levy stems from Bali’s reliance on airlines to communicate the tax, as the national government controls immigration procedures. Without the support of airlines, the provincial government cannot require immigration officers to check payment receipts at the border, leaving enforcement at the mercy of passenger awareness.

Currently, there are no dedicated checkpoints at Bali’s airport to verify whether tourists have paid the levy, and immigration officers are not authorized to ask passengers for proof of payment. As a result, many visitors are simply unaware of the tax until they arrive in Bali, making it challenging for the government to achieve its compliance targets.

New Measures: Hotels and Tour Operators Join the Collection Effort

With airlines slow to act, Bali’s government has introduced a new regulation to expand the responsibility of tax collection to other sectors of the tourism industry. The updated regulation, Regional Regulation No. 2/2025, allows hotels, tour operators, and travel agents to collect the levy on behalf of the government. In return, these businesses will receive a 3% commission on the amount collected.

By involving local businesses in the collection process, officials hope to improve the visibility of the tax and ensure it is paid earlier in the travel journey, ideally before the visitor even arrives in Bali. This strategy could also help streamline the payment process, reducing confusion and delays for travelers once they reach the island.

Integration with National Systems for Greater Efficiency

In addition to the new regulations, Bali’s government is working with Jakarta to integrate its Love Bali payment system with the national All Indonesia platform. This system aims to link the tax to the immigration process, so tourists would pay the levy in advance, but it is unlikely that immigration officers will check for receipts directly.

The integration is designed to make the payment process smoother and more efficient, though enforcement remains a challenge. Bali officials continue to stress that the success of the tax program relies heavily on increased airline participation and communication with passengers.

The Growing Problem of Scam Websites

Another challenge faced by travelers attempting to pay the levy is the rise of scam websites that impersonate the official payment portal. These fraudulent sites often appear at the top of search engine results, charging inflated fees that can be up to three times higher than the correct amount. Travelers are being misled into paying more than required, which not only impacts their travel budget but also raises concerns about the transparency of the payment process.

While tourists can technically pay the tax on arrival at Bali’s airport, the lack of dedicated checkpoints means that very few are actually checked for proof of payment. This gap in enforcement contributes to the slow progress in meeting the tax collection targets.

Bali’s Revenue Shortfall and the Importance of Airline Participation

As of early 2025, Bali has collected 330 billion IDR (approximately $20 million) from the tourist tax, falling short of its 380 billion IDR ($23 million) target. With Bali entering its peak tourist season, officials are emphasizing the importance of airline participation in closing this revenue gap. The success of the Foreign Tourist Levy is critical not only for sustainable tourism initiatives but also for the island’s ability to improve its infrastructure and manage the growing pressures of tourism.

By getting airlines on board and improving communication with travelers, Bali hopes to significantly boost compliance rates and ensure that the tourist tax becomes a reliable source of funding for future tourism development.

The Path Forward for Bali’s Tourism Tax

Although Bali’s Foreign Tourist Levy will contribute to the growing sustainability of the tourism industry, the tourism industry will need the cooperation of airlines, hotels, tour operators, and the local government to realize its full potential. The levy will help fund the necessary infrastructure to deal with challenges such as overtourism and climate change. Bali aims to remain one of the world’s premier destinations and the infrastructure will help sustain that.

Sustainable tourism will also continue to thrive in Bali’s tourism industry but only if all actors in the industry work together to improve communication and payment processes, as well as ensure all visitors are informed of the levy prior to their arrival. Secure revenue targets will depend on the success of these initiatives balanced with responsible tourism.