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Foreign tourist tax may hurt businesses, industry groups warn
Two of the country's major tourist associations have expressed caution over a minister’s idea to impose a tax on foreign tourists, which came up after a spate of viral incidents involving foreign nationals behaving badly in Bali.
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Foreign tourists are seen on Dec. 31, 2022 aboard a fast boat at a pier on Serangan Island, Bali.
(AFP/Sonny Tumbelaka)
T
he government is considering a tax for foreign tourists after controversial incidents made their rounds on social media, but industry associations warn that businesses may suffer as a result.
Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan called for the new levy to be imposed soon.
“Don’t ever sell Indonesia short. We need to show them [foreign tourists] that we are a nation that greatly upholds cultural values, tradition and rules,” he posted to Instagram on April 3.
Tourism and Creative Economy Minister Sandiaga Uno told reporters on Monday that the planned tax plan was “currently being studied” to determine the amount and whether it was the right step to take.
“We expect the study to wrap up in the coming weeks so we can discuss and decide [the matter],” he said.
Both ministers mentioned that the new “foreign tourist tax” could be used to develop and market the country’s tourist destinations. Sandiaga added that the extra income could also be used for environmental conservation.
Industry representatives say, however, that the tax could negatively affect tourism and related sectors, including the micro, small and medium enterprise (MSME) sector.
