Denpasar. Bali collected Rp369 billion ($23 million) from its foreign tourist levy in 2025, a modest improvement in compliance in the policy’s second year, Governor Wayan Koster said, even as receipts fell short of budget targets amid record visitor arrivals.

Bali welcomed an estimated 7.1 million foreign visitors in 2025, according to provincial data.

“Only Rp369 billion has been collected, slightly higher than last year,” Koster told reporters in Denpasar on Saturday.

The figure remains well below the 2025 budget target of Rp500 billion. Still, Koster said the shortfall was understandable given the levy’s relatively recent introduction.

“This is a new local regulation that has only been in place for two years, and there has already been progress,” he said.

Bali introduced the Rp150,000 ($9.40) levy per foreign visitor in early 2024 as part of its effort to fund cultural preservation and environmental protection on Indonesia’s top tourist island, which has struggled with congestion, waste management and pressure on traditional communities following the post-pandemic tourism rebound.

To improve collection rates, the provincial government plans to intensify communication and outreach while expanding cooperation with key institutions, including the Immigration Ministry, state airport operator Angkasa Pura, and airlines serving Bali.

A key driver of higher collections in 2025 was a revision to regional regulations that introduced financial incentives for tourism businesses that help collect the levy from visitors. Since August, at least 150 accommodation providers have joined the scheme as official collection endpoints.

“The incentive-based cooperation with tourism businesses has already had an impact this year. Thanks to that support, collections increased by about 3%,” Koster said, adding that the province plans to expand partnerships further.

Under Law No. 18/2023 and related regional regulations, all proceeds from the foreign tourist levy are recorded as locally generated revenue. The funds are earmarked for cultural programs, including support for traditional villages, as well as initiatives to address environmental and social challenges linked to mass tourism.

“These funds are used for culture, including traditional villages, and also to tackle environmental and social issues,” Koster said.