Will Indonesia’s Bali adopt a Bhutan-style levy to deter ‘low-class foreign tourists’?

As concerns mount in Bali that the high volume of budget-conscious tourists is threatening the Indonesian island’s economy and reputation, officials are being urged to consider a drastic shift towards a Bhutan-style tourism model that would require visitors to pay a hefty fee.

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I Wayan Puspa Negara, head of the Bali Marginal Tourism Actors Alliance, recently proposed charging foreign visitors a daily fee.

To visit Bhutan, tourists, except Indians, must pay a fixed daily charge – called the Sustainable Development Fee – of US$100 per person, although that amount has been dropped from US$250 before the pandemic. Tourists are also obliged to hire a guide, driver and transport from any official tour agency.

“Foreign tourists who come to Bali must be selected, like in Bhutan,” said Puspa Negara, who is also a regional lawmaker at the House of Representatives in Bali’s Badung regency.

“They select tourists from a spending perspective. It’s the same as when [Indonesians] go to the US, Europe or Britain. The first requirement [for visa applicants] is that they must have a minimum amount of savings. If you don’t have it, they won’t give you a visa.”

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Bali’s governor Wayan Koster has previously floated the idea of a Bhutan-style approach in 2023, saying he “ideally would like Bali to be like Bhutan”, where tourists are strictly limited to 400,000 per year.

  

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