Bali considers Bhutan-style tourism model to address budget tourist concerns

A Bhutan-style tourism model, which would charge foreign visitors a daily fee, is being considered by Bali officials as a solution to the growing concerns over budget-conscious tourists damaging the island's economy and reputation.

Wayan Puspa Negara, the head of the Bali Marginal Tourism Actors Alliance, proposed charging a daily fee for foreign tourists visiting Bali.

In Bhutan, all tourists except for Indians are required to pay a Sustainable Development Fee of US$100 per day, reduced from US$250 before the pandemic.

Additionally, visitors must hire guides, drivers, and transport services from official tour agencies.

“Foreign tourists who come to Bali must be selected, like in Bhutan,” said Negara, who also serves as a regional lawmaker in Bali’s Badung regency.

“They select tourists based on their spending capacity. It’s the same as when Indonesians go to the US, Europe, or Britain. The first requirement for a visa is a minimum amount of savings. If you don’t have it, they won’t give you a visa,” he added.

In 2023, Bali's Governor Wayan Koster proposed a similar Bhutan-style approach, saying, “Ideally, I would like Bali to be like Bhutan, with a cap of 400,000 visitors per year.”

While Bali’s economy heavily relies on tourism, not all visitors are big spenders, which has led to tensions among locals, particularly small and medium-sized business owners.

According to a Feb 15 report by Daily Media Indonesia, groups of "low-class foreign tourists" were seen bargaining loudly for less than 1 kg of fruit and sitting for hours at food stalls at Kedongan Fish Market in Badung, south Bali.

A food stall owner, Mrs Wayan, became so frustrated with one group that she kicked them out.

“They don’t shop. They just buy a glass of iced tea, then sit, chat, and date for hours. They block other customers who want to eat here. I usually chase them away. This has become a normal sight here,” she said.

Many Balinese locals have coined terms for these budget-conscious tourists, including “turis sandal jepit” (flip-flop tourists) and “wisatawan receh” (small change tourists).

Ida Bagus Raka Suardana, an economics lecturer at Bali’s National Education University, explained that these tourists often have limited budgets and contribute little to the local economy.

“They usually choose cheap accommodation, walk everywhere, eat street food, and use public transport,” he said. “There are pros and cons to this type of backpacker.”

While Suardana acknowledged that low-budget travelers helped introduce Bali to the world, he argued that these tourists, who continue to dominate the island despite the growing number of luxury resorts, have become problematic.

“Hippies introduced Bali to the international world. They didn’t cause much trouble in the past. They came here to enjoy nature, lived in people’s homes, and directly contributed to the local population,” he said.

“Now many of them are causing trouble. They cause commotion in bars, drive motorbikes recklessly, and disrespect local customs, especially during Balinese Day of Silence (Nyepi),” he added.

Suardana supports the idea of selecting visitors based on their income, though he believes it may be too extreme to fully adopt Bhutan’s tourism model.

Both Suardana and Negara clarified that not all backpackers are disruptive. Many contribute to Bali’s economy by staying in family-run guesthouses and using local businesses.

According to Negara, Bali continues to welcome "middle- to low-income" tourists but believes officials should increase law enforcement and monitoring to address negative behaviors.

He also suggested international airlines inform travelers of Bali’s dos and don’ts before their trip.

To address these issues, officials may introduce a tourism levy of 150,000 rupiah (US$9.20) at Bali’s airport, as proposed by Suardana.

The levy, which was introduced in February 2023, has generated 317 billion rupiah (US$19.3 million) by December, but it fell short of the 750 billion rupiah target due to low compliance.

Meanwhile, incidents involving misbehaving visitors continue. A recent viral incident saw an Australian man arrested for assaulting security staff at Finns Beach Club in Badung regency.

There have also been cases of tourists misusing their visas, stripping naked in sacred temples, and the creation of an illegal “Russian Village” in Ubud.

Between January and September of last year, 412 illegal foreigners were deported from Bali, according to local immigration authorities.