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Introduction to Bali tourist tax
Bali’s tourist industry has grown at an outstanding rate over the past two decades. The island continues to attract a growing number of visitors and is set to exceed pre-pandemic levels during 2024.
The provisional government will use the Bali tourist tax income to promote a sustainable tourist experience to accommodate the rising influx of visitors.
With increased tourism comes increased degradation to long held customs, along with increasing outbreaks of unacceptable behavior from tourists, increased demand on local government in policing tourist hot-spots, removing waste and litter, and ecological damage to boot.
Are Bali tourist taxes good or bad?
Tourist taxes have become a widely debated topic in recent years. Some proponents argue that tourist taxes can stand to bring substantial benefits to property investment, while others say it is damaging to the tourism trade in a country that has only started to recover from the effects of lock-down and COVID.
You only have to look at Venice, or Sardinia to see the long term effects of a Tourist Tax. With both, now seeing major improvements on income, and more importantly ecological problems that threatened to swamp these favorite tourist destinations
This blog hopes to explain the advantages of implementing a tourist tax and its positive implications for property development, tourism management, and local economies.
Removal Of Visa On Arrival charge
Bali Tourist tax actually replaces the original Visa on Arrival fee* applicable to many tourists such as Australia, America, China, New Zealand and Britain.
The new tax will cost Rp.15,000 ($US 10) per person, while the Visa on Arrival costs Rp. 500,000 ($US 35) per person. So this is, in truth a huge saving for visitors intending to stay for less that 30 days.
*Note: The official immigration website for Bali has not been updated yet to reflect this change. We will confirm this after the 14th February.
Preservation of Bali’s heritage
One of the main areas that will benefit from the Bali Tourist tax is in the preservation of Bali customs, traditions, art and local wisdom.
This will help keep the culture of this vibrant island alive, and attract further visitors to its shores.
Preservation of nature
Bali’s natural environment is one of the biggest draws to the island, and protecting it is vital to it’s continued success and beauty.
Some of the funds from the tourist levy have been earmarked for reforestation, maintenance and protection of local floral and fauna.
Improvement of tourist experience
Increased funding in all levels of the economy will allow for improvements in infrastructure, road networks, transportation and more, which as anyone who has ever been to Bali and strayed from the beachfront will surely welcome. Some of the more rural / local roads are a lesson in defensive driving and awareness testing to the limit.
Improved waste management
Up to 70% of the Bali tourist tax revenue will be spent on tackling the islands waste management.
A huge amount of litter and waste is produced from the tourism trade. Disposing of it can cause massive issues. Increased funding allows for better and faster disposal and a nicer environment for all.
Promotion of Bali’s rural areas
While Bali is famous for its beaches, inland has so much more to offer than just sand and sea, not only is there hiking, and cycling, and historical sight-seeing, Bali is a world-class destination for Scuba diving, Rock Climbing and other activities.
These are well kept secrets in their own fields. In fact, rural developments for sale are achieving new levels of interest, with search terms such as ‘investment property in Amed’ (One of the secrets of the Scuba Diving Community) hitting new highs on search engines.
And with good reason, property prices are significantly lower away from the prime tourist areas, resale values traditionally suffer much less from fluctuations and you can find some amazing new builds in these areas for much lower investment and greatly elevated property sizes and value.
The Bali government is planning on using some of the Bali tourist tax to fund promotion of areas away from the tourist hot-spots allowing you to experience a new side to Bali and fall in love all over again.
This also provides a great opportunity to invest now in the potential promoted areas and gain significant growth.
Funding local infrastructure through Bali Tourist Tax
One significant benefit of Bali’s Tourist Tax is the generation of additional revenue for local governments. These funds will be allocated to infrastructure development, including roads, public transportation, and recreational facilities.
As tourists contribute to increased wear and tear on local infrastructure, a tourist tax serves as a fair mechanism for them to financially contribute to the maintenance and improvement of the amenities they benefit from the most.
Tourism sustainability
By charging a negligible tourist tax, holiday destinations regulate the influx of tourists, which in turn prevents overcrowding and minimizes the environmental impact.
This helps to strike a balance between economic gains from tourism and preservation of the local environment, culture, and community well-being.
Property value enhancement
Property values in holiday destinations more often than not experience a significant boost in value due to improved infrastructure and sustainable tourism practices.
Property owners often witness an increase in the value of their investment. The improved attractiveness of the destination, and promotion of new areas of interest and beauty can stimulate demand for rental properties, holiday homes and investment properties, benefiting property owners, investors, holiday makers and local real estate markets.
Job creation and economic growth
With the increased investment provided from Bali’s Tourist Tax more job opportunities will come available for the indigenous population.
Not just for hotels, and tourism facilities, but in waste management, road crews, reforesting and all the new planned improvements to the island.
This provides not just work, but a sizable increase in spending within the local communities as previous unemployed people now have the chance to earn and have an increase in disposable income.
This in turn contributes to a healthier and more vibrant local community, thereby attracting more visitors, more facilities, and more opportunities for property investments.
Closing thought
The benefits of Bali’s New Tourist Tax are multiple, and undeniable. Extending beyond mere financial gains.
By implementing and managing tourism, Bali’s local governments can create sustainable tourism, enhance and improve their existing infrastructure, and stimulate economic growth.
Shrewd property investors stand to gain from the resulting increase in property values and demand for rentals, especially in the less well known areas.
Moreover, Bali’s new tourist tax benefits the overall well-being of the community by creating jobs and ensuring the long-term viability of tourist destinations.
Additionally, the small deterrent of Bali’s tourist tax will only improve the quality of visitors to the island with the more rowdy and disreputable crowd preferring to go to alternative destinations rather than contribute to the growth of an economy.
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