Bali’s plans for a new daily tourism tax are making headlines!
Authorities propose a daily fee similar to Bhutan’s Sustainable Development Fee in response to rising concerns over unruly tourist behavior, environmental degradation, and overburdened infrastructure.
Foreign tourists already pay a one-time Tourism Levy of IDR 150,000 (~ USD 10), introduced on February 14, 2024. However, officials argue that additional measures are needed to ensure Bali’s long-term sustainability while filtering for higher-value visitors.
Puspa Negara, head of the Bali Marginal Tourism Sector Alliance, is one of the supporters of this initiative. On Expat Life in Indonesia, he stated, “It’s time for Bali to shift towards high-quality tourism by improving destinations and human resources. This initiative can be supported by government policies,”
Alternative ways to manage overtourism in Bali:
However, critics question whether raising costs will deter visitors or simply shift travel patterns.
Several tourism industry experts argue that there are more effective, alternative solutions to managing Bali’s rapid influx of travelers while still promoting sustainable growth.
1. Tiered Pricing and Incentives for Sustainable Travel
Carla Niña Pornelos, General Manager at Wardnasse, suggests a tiered visitor contribution system could be more effective.
Instead of a blanket tax, Bali could introduce:
- Incentives for eco-friendly choices: Discounts for staying in sustainable hotels or joining community-led tours.
- Dynamic pricing: Higher fees during peak seasons and lower rates in off-peak periods to regulate tourist flow.
- A digital ‘tourist passport’: Offering perks for supporting local businesses rather than relying on mass-tourism hotspots.
“Bali thrives on its cultural and natural beauty. Smart, community-driven policies—rather than daily fees—could create a more meaningful, high-value tourism economy,” Carla says.
2. Education and Visitor Management
Some experts advocate for mandatory education programs rather than simply charging visitors.
Sebastian Garrido, Digital Marketing Manager at Vibe Adventures, suggests implementing a visitor education program, “making all travelers attend a short session to educate them about the environmental and cultural sensitivity of certain areas before going.”
Additionally, Michael Sawyer, Operations Director at Ultimate Kilimanjaro, draws parallels to Kilimanjaro’s strict tourism regulations.
“Timed entry permits allow tourists to be more evenly distributed, just as Kilimanjaro limits peak-season access,” he explains.
Bali could adopt a similar strategy for overcrowded attractions like the Tegallalang Rice Terraces or Ubud Monkey Forest.
3. Spreading Tourism Beyond Hotspots
A major problem is the concentration of tourists in a few key locations.
Peter Gill, Destination Wedding Planner at Your Bali Wedding, proposes measures to promote off-peak and regional tourism:
- Enforcing capacity limits at overcrowded sites.
- Encouraging travel to lesser-known areas like Sidemen, Amed, and West Bali.
- Introducing minimum spending requirements in premium areas, such as Uluwatu and Nusa Penida, to encourage higher-value tourism.
Similarly, Brian Raffio, Senior Travel Specialist at Climbing Kilimanjaro, recommends
to “start promoting the North-side of the island, which is largely unexplored by tourists.
“By developing infrastructure [and] luxury hotels, and offering discounts, the crowd can be evenly distributed during the peak months.”
4. Capacity Limits and Alternative Revenue Models
Several experts pointed to alternative funding mechanisms that don’t rely on daily fees.
- Jo Lacroix, Health & Performance Coach at Ultimate Kilimanjaro, notes that
“putting a cap on daily visitation” could be a more effective long-term strategy. - Deepak Shukla, CEO of Pearl Lemon Adventures, suggests a system where tourists pay more for high-demand attractions while off-peak travelers receive discounts.
- Will Hatton, Founder of The Broke Backpacker, proposes a “quota system” for social media hotspots and “to find a way to let them [the tourists] engage with the local culture, taking away their focus from finding the perfect selfie.”
Finding the Right Balance
Experts generally agree that while Bali needs a strategy to manage overtourism, a daily tourism tax alone may not be the most effective approach.
Instead, tiered pricing, visitor education, capacity limits, and incentivized eco-travel offer more sustainable long-term solutions.
Bali’s challenge is not just managing the number of visitors but ensuring they engage responsibly and contribute meaningfully to the island’s economy and environment.
As tourism policies evolve, a balanced, multi-pronged approach will likely be the key to preserving Bali’s magic for future generations.
What Do You Think?
Would you support a daily tourism tax, or do you think incentives and better visitor management would be a smarter approach? Share your thoughts below!
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