Bali Pushes 'Quality Tourism' With Bank Statement Checks as Tax Compliance Lags

Bali's push for 'quality tourism' is entering a tougher phase as officials consider bank statement checks for visitors while the island struggles to enforce its tourism tax.

The proposed screening plan comes as Bali recorded a record year for international arrivals in 2025. Even with that surge, most visitors are still failing to pay the mandatory levy designed to protect Balinese culture and the environment.

Only One in Three Visitors Are Paying Bali's Tourism Tax

Bali Governor Wayan Koster said only around 35 per cent of international visitors paid the province's tourism tax in 2025. That figure marks a slight improvement from 2024, yet it remains far below what the government expected.

According to reporting on Bali's tourism tax compliance, the island collected Rp369 billion last year, equivalent to around £16.5 million, a modest rise from 2024's total. Even so, the province had targeted Rp500 billion, or roughly £22.4 million, meaning the shortfall remains significant.

The levy costs Rp150,000 per visitor, which is about £7.00, and was introduced to support conservation and cultural preservation. Still, the low uptake has exposed weak enforcement, particularly as Bali's visitor numbers continue to climb.

The Bank Statement Proposal Targets 'Problem Tourists'

Alongside stronger tax enforcement, Bali is now drafting a policy that would require foreign tourists to provide bank statements from the past three months as proof of financial capacity.

The plan, detailed in reports about Bali's bank statement checks, would also require travellers to submit information on their travel plans and intended length of stay. Officials say this approach is meant to prevent incidents involving tourists running out of money and creating social problems.

Governor Koster has argued that travellers should match the length of their trip to their budget. He has said the island wants tourists who can support themselves, respect local laws and contribute positively to the economy.

Record Arrivals Put Pressure on Bali's Infrastructure

The proposed screening comes amid growing concern over overtourism. Bali recorded more than 7 million foreign arrivals by air in 2025, its highest total on record. Authorities have linked the increase to worsening congestion and pressure on infrastructure, alongside environmental strain.

Local officials have also pointed to misbehaviour by some visitors, including cases involving violations of regulations and disrespect for cultural norms. These issues have fuelled calls for stricter controls on who enters the island.

As a result, Bali's leadership is increasingly framing tourism policy around quality rather than volume. The shift reflects both financial frustration over unpaid levies and public concern over the pace of tourism growth.

Incentives, Airline Partnerships Aim to Boost Payments

Bali has also introduced incentives to increase levy compliance. Since August 2025, about 150 accommodation providers have joined a programme that allows them to earn a 3 per cent commission by collecting the tax from guests.

Officials have also signalled closer coordination with immigration, airports and airlines to promote payment compliance. The aim is to build the levy into the travel journey, making it harder for visitors to ignore.

At the same time, authorities have previously floated the idea of raising the fee to as much as Rp800,000. In pounds, that would be roughly £37 per traveller. Supporters say higher charges could reduce overtourism while attracting visitors willing to spend more. Critics warn that steep increases may deter mainstream holidaymakers.

Questions Remain Over Enforcement Powers

While the bank statement proposal has drawn attention, it has also raised legal and logistical concerns. Some lawmakers have questioned how a regional government can implement entry requirements that overlap with national immigration authority.

There are also practical issues around verifying overseas banking records in a consistent and secure way. Critics have warned that strict screening may discourage backpackers and budget travellers, pushing them towards rival destinations in South East Asia.

Even so, Bali's message is becoming clearer. Officials want higher-value tourism that delivers stronger economic benefits while easing strain on local communities and ecosystems. For now, the combination of unpaid tax, record arrivals and rising social pressures is pushing the island towards tighter controls.