'Bali's new tourist levy is another opportunity for agents to shine'
Bali’s new tourist levy, introduced on Wednesday (14 February), is designed to address the issue of overtourism and generate funds for infrastructure development and environmental conservation.
Charged at about £7.50pp, while it won’t be a deterrent in terms of affordability, it is another inconvenience to travellers and is something agents will need to be on top of.
I caught up with some of our Pata UK and Ireland tour operator members to gauge their reaction and explore any knock-on effects they anticipate.
’Relatively small amount’
Helen Wheat, Travelbag’s destination manager for Asia, said with flight prices and accommodation costs rising around the world, customers are seeking cost-effective destinations.
"The introduction of a tourism tax for passengers entering Bali is yet another one of these expenses customers will have to absorb, especially larger groups or families travelling together," she said.
Wheat continued: "I don’t think the cost will deter people from heading to Indonesia, though. It’s a relatively small amount, which will readily be absorbed by customers.
"Let’s hope the process is smooth and that it doesn’t cause more delays entering Denpasar [airport]. I’d also be interested to know how and where the additional revenue is being directed more specifically within the destination."
’A couple of drinks’
David Kevan, co-founding director of CHIC Locations and another Pata UK and Ireland spokesperson, agreed the levy was unlikely to be a deterrent to clients who are already spending £2,000-plus on their holidays.
"In real terms, it’s a couple of drinks at the bar," he said. "However, it’s important for agents to be across the details so that they can be transparent with their clients and make that pre-departure period as smooth as possible.
"Agents need to keep in mind this tax is in addition to the visa fee of 500,000 IDR (about £25) and ensure this is communicated clearly to their clients."
Kevan added: "Furthermore, both the visa and tax are recommended to be paid in advance, but it does raise concerns about how the client’s information might be used, particularly when disclosing passport and credit card details.
"It is possible to make payment on arrival at designated payment counters at Bali’s airport and seaport. However, my instinct is to always make such payments in advance to minimise hassle on arrival for the client."
’Ultimately, it’s an annoyance’
We appreciate additional taxes and costs are never well received by consumers, or the trade, with the added complications they bring to pre-departure arrangements.
While we aren’t concerned about the impact on arrival numbers, it could ultimately be an annoyance for travellers and agents who now have an extra layer of entry requirements to consider.
But it is also another opportunity for agents to demonstrate their expertise and high levels of service when they broach the subject with their clients.
Chris Crampton is chair of Pata UK and Ireland, the Pacific Asia Travel Association.
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