Bali wants Bhutan-style tax to scare off 'budget' travelers

Bali is considering adopting a Bhutan-inspired daily fee for foreign tourists, aiming to preserve the island’s culture and attract higher-spending visitors.

Currently, tourists pay a one-time levy of IDR 150,000 (approximately $10-15), introduced in February 2024. However, officials are now debating whether to shift toward a daily tax model similar to Bhutan’s Sustainable Development Fee, which charges visitors $100 per day. Additionally, the proposal includes a cap on the number of annual visitors, potentially limiting them to 400,000 per year.

The goal of the initiative is to transition Bali’s tourism from a volume-driven model to one that attracts high-value travelers. Officials believe this shift could help improve the island’s economy and reputation by discouraging budget-conscious tourists while promoting sustainable tourism practices.

Several prominent figures in Bali have voiced support for the proposal. Bali Governor Wayan Koster stated in 2023:

“Ideally, I would like Bali to be like Bhutan.”

I Wayan Puspa Negara, head of the Bali Marginal Tourism Actors Alliance, also said:

“Foreign tourists who come to Bali must be selected, like in Bhutan, from a spending perspective.”

Although the Bhutan-style daily tax is still under discussion and has not been implemented as of February 2025, officials are also reviewing the effectiveness of the existing one-time fee. Reports indicate that only about 35% of international tourists have paid the current tax since its introduction. Indonesian authorities are investigating the mismanagement of the system and considering improvements to increase compliance and ensure transparent use of the funds.