Bali considers tourism tax to tame overtourism, boost sustainable travel

Bali, one of the world’s most popular tourist destinations, is considering a new tourism tax to manage the effects of overtourism and ensure the island’s long-term sustainability. 

Euronews describes in its latest article that Bali, one of the world’s most sought-after travel destinations, could soon become more expensive for tourists as local authorities consider implementing a new tourism tax. The proposed tax, aimed at curbing overtourism and boosting conservation efforts, would mirror Bhutan’s successful $100 (95 euros) Sustainable Development Fee, which applies to most international visitors.

Wayan Puspa Negara, head of the Bali Marginal Tourism Actors Alliance and a lawmaker in Bali’s Badung regency, discussed the concept with the South China Morning Post, suggesting that the island could follow Bhutan’s lead by "selecting" tourists based on spending power. Bhutan, known for limiting its annual visitors to 400,000, has previously charged up to $250 (240 euros) per day for entry. Negara emphasized that this approach would be similar to how Indonesians are restricted when traveling to countries like the US, Europe, or Britain.

Bali, famously known as the "Island of the Gods," has long been a major global travel hotspot, attracting millions of visitors with its idyllic beaches, vibrant culture, and affordable accommodations. However, the surge in tourism has also led to significant challenges. Local residents, who have witnessed the island’s rapid transformation, are increasingly frustrated with problems like congested traffic, unchecked development, and unruly tourists. In 2019, tourism accounted for over 60% of Bali’s economy, but its popularity has come with growing resentment.

In recent years, the island has seen several high-profile incidents that have raised concerns about the behavior of foreign visitors. In 2023, a Russian influencer was deported for posing naked on a sacred tree, while many others have been sent home for working illegally on tourist visas. Reckless driving, clashes with authorities, and disrespect for local customs have further fueled the call for stricter regulations.

As pressure mounts, Bali’s authorities are exploring ways to balance the booming tourism industry with the well-being of its residents and the environment. In 2023, Bali considered banning motorbike rentals for tourists to reduce traffic accidents, and local officials halted the construction of new hotels, villas, and nightclubs in areas already saturated with development. The Bali Tourism Board also launched a campaign encouraging visitors to behave respectfully.

The idea of raising the tourism tax is now being reconsidered as a potential solution to the island’s overtourism crisis. Governor Wayan Koster initially proposed a Bhutan-style tourism fee in 2023, and earlier this year, Bali introduced a one-time entry fee of 150,000 Indonesian rupiah (9 euros) to fund conservation efforts. Now, officials are revisiting the idea of a higher charge to better manage the flow of visitors while attracting wealthier tourists who may contribute more to the island’s economy.

As Bali continues to grapple with the challenges of overtourism, the island’s future may depend on finding the right balance between maintaining its status as a top tourist destination and preserving its natural and cultural heritage for generations to come.

By Naila Huseynova