Overview: A Modest Increase in Levy Revenue
In 2025, Bali collected Rp369 billion (about $23 million) from its foreign visitor levy, Governor Wayan Koster announced. The figure marks a modest improvement in compliance for the policy’s second year, even as receipts fell short of the year’s budget targets. The levy, designed to fund tourism infrastructure and conservation efforts, remains a key financing tool for Bali’s evolving visitor economy.
What the Foreign Visitor Levy Is and Why It Matters
The foreign visitor levy is a fee charged to international travelers visiting Bali, intended to support public services, destination management, and sustainability initiatives. Proceeds are earmarked for tourism-related projects, including waste management, road improvements, and cultural preservation programs. As Bali seeks to balance growth with environmental and cultural stewardship, the levy is central to financing improvements that benefit both visitors and residents.
Second-Year Compliance: From Experiment to Routine
2025 represents the second year of the levy’s operation. Authorities have emphasized the importance of broader compliance across all entry points and tourism-related businesses. While the total collected amount indicates progress, it also underscores ongoing gaps between policy ambitions and on-the-ground collection. The governor and related agencies point to administrative enhancements, clearer guidance for operators, and streamlined payment processes as essential steps toward stronger performance in 2026.
Budget Targets and Reality: Understanding the Gap
The Rp369 billion total fell short of the year’s budget projections. Several factors influenced the shortfall, including fluctuations in visitor numbers, administrative bottlenecks, and regional economic variability. Nevertheless, the figure signals that the levy is beginning to function as a reliable revenue stream, even if it requires refinement to meet aspirational targets aligned with Bali’s ambitious tourism development plans.
Implications for Bali’s Tourism Sector
Revenue from the foreign visitor levy supports critical infrastructure and sustainability programs that can enhance Bali’s appeal to travelers. As the island continues to recover from recent downturns, steady levy collections help fund improvements that address overtourism concerns, preserve cultural sites, and upgrade transport and public amenities. For hoteliers, tour operators, and business owners, predictable levy revenue can translate into better planning and investment in responsible tourism practices.
What Comes Next: Enhancing Compliance and Impact
Officials say next year will focus on tightening collection mechanisms, expanding compliance among foreign visitors and local businesses, and improving transparency in how funds are allocated. Potential measures include clearer guidance for visa and entry processes, more robust reporting requirements, and targeted outreach to the hospitality and transport sectors. The overarching goal is to ensure the levy is both fair to visitors and effective in supporting Bali’s long-term tourism resilience.
Conclusion: Steady Progress for a Climate-Conscious Destination
Bali’s Rp369 billion 2025 levy figure reflects careful progress in a complex tourism landscape. While receipts did not hit budget targets, the ongoing rollout and enforcement improvements suggest a trajectory toward stronger, more sustainable funding for Bali’s visitor economy. As the policy matures, travelers can expect continued investments in destination management that aim to elevate the Bali experience while protecting its unique natural and cultural assets.
