The island of Bali, renowned for its breathtaking landscapes and vibrant tourism, is embarking on a significant policy change with the introduction of an entry levy for foreign tourists. In a move to manage tourism flows, the Provincial Government (Pemprov) of Bali has proposed an entry levy of IDR 150,000, equivalent to approximately US$ 10 at the prevailing exchange rate.
The payment, to be facilitated through electronic means, aims to regulate and streamline the influx of international visitors, ensuring a sustainable and balanced approach to tourism management.
The decision to implement the entry levy has garnered attention and debate, with the Provincial Government targeting the earliest possible enactment date of February 2024. Bali Governor, Wayan Koster, disclosed this timeline, emphasizing that the levy, officially known as the BI 7-Day Reverse Repo Rate (BI7DRR), would be enforced paling cepat (at the soonest) on February 1, 2024.
This timeline aligns with the province’s strategic objectives to effectively address tourism-related challenges and optimize the economic benefits derived from tourism activities.
The proposal for the entry levy was a product of meticulous planning and policy consideration, with the Governor highlighting the importance of widespread socialization and engagement with all stakeholders before its full implementation.
The Bali Provincial Parliament, through a Working Meeting, actively participated in discussions surrounding the Raperda (Regional Regulation) governing the entry levy. While some council members queried the timing of the implementation, Governor Koster reiterated the necessity of ample socialization to ensure public awareness and compliance.
Undoubtedly, the entry levy constitutes a vital component of the province’s efforts to bolster sustainable tourism practices and environmental conservation. By managing tourist arrivals and regulating the financial inflow from international visitors, Bali aims to strike a delicate balance between economic growth and environmental preservation.
The levy, to be paid electronically through an e-payment system, reflects the government’s commitment to leveraging digital technologies to enhance efficiency and convenience.
To reinforce the significance of the entry levy, the Bali Provincial Government underscored its alignment with broader national and regional targets. In particular, the province seeks to maintain inflation within the targeted range of 3% plus minus 1% for the remaining months of 2023 and 2.5% plus minus 1% for 2024.
The entry levy, as a key policy measure, serves as an instrumental tool in supporting the central bank’s monetary policy objectives while fostering sustainable economic growth.
Governor Koster’s collaboration with the Ministry of Home Affairs (Kemendagri) proved pivotal in streamlining the regulatory process, with the objective of facilitating a timely and efficient approval from the Bali Provincial Parliament.
By seeking swift approval and implementation, the Governor anticipates that the Raperda will be agreed upon and officially established within a relatively short timeframe. This proactive approach reflects the government’s commitment to rapid policy execution to address pressing tourism-related issues.
Looking ahead, Governor Koster emphasized the significance of cooperation and active participation from all stakeholders, including the private sector, local communities, and relevant industry players.
The successful implementation of the entry levy relies on the collective efforts of various parties to ensure that the policy objectives are met, that socialization initiatives reach all corners of the province, and that any concerns or feedback are effectively addressed.
The entry levy proposal showcases Bali’s progressive approach to tourism management, with a keen focus on economic growth, environmental conservation, and digital transformation. By leveraging modern technologies and proactive policy-making, the province endeavors to chart a sustainable and inclusive path towards a vibrant future for Bali’s tourism industry.