- Visitor fees imposed in Asia so far are too low to put off travellers
- Fees are no good for quelling overtourism, but will provide regular revenue for destinations to use on tourism infrastructure maintenance
- Industry players urge transparency in collection and usage
Bali is the latest destination in a line of others across the world to impose a visitor fee aimed at preserving the condition of the land, and will likely not be the last to do so as tourism authorities seek ways to better manage tourist flows and fund tourist infrastructure maintenance.
Since February 14 this year, all international visitors entering Bali have to pay a one-time levy of 150,000 rupiah (US$10) per person. The Bali government has said that the collection will be used to fund the preservation of Bali’s unique cultural heritage and to reinforce sustainable tourism efforts. The first year of takings, estimated at 250 billion rupiah, will specifically be used for cultural preservation programmes and critical waste management.
In October last year, the Japanese island of Miyajima, located in Hiroshima Prefecture and famed for the UNESCO World Heritage site of Itsukushima Shrine, began charging an entry tax of 100 yen (US$0.66) per entry or 500 yen for a one-year pass. Hatsukaichi City officials, who oversee Miyajima, say the visitor fee will be used for sustainable tourism development, including measures to alleviate visitor congestion, as well as the maintenance of the ancient shrine.
A tourist fee was also set to commence this year in Thailand, but has since been put on hold. Part of the collection was meant for a new health and accident insurance for foreign tourists, which is now funded by the nation’s coffers. The insurance coverage of up to 500,000 baht (US$13,861) per traveller involved in any accident while holidaying in the country – or up to one million baht in the event of death – is facilitated by Thailand’s Ministry of Tourism and Sports, and the National Institute of Emergency Medicine under the Ministry of Public Health.
Other popular Asian destinations, such as Jeju in South Korea as well as Taketomi and Amami in Japan, are mulling tourist fees.
Jeju intends to use the fees to manage waste brought on by its booming tourism industry. Discussions back in mid-2023 said tourists could expect to pay a fee for every night of stay on the island along with a one-time entry fee and vehicle rental surcharges.
Taketomi in Okinawa, which encompasses World Natural Heritage Site Iriomote island, submitted a draft plan last year for a visitor tax starting in fiscal year 2024. The income would be used to ease the strain on local infrastructure and reduce environmental damage caused by tourists, who numbered more than one million annually pre-pandemic.
Nearby island chain Amami, another World Natural Heritage Site, is also considering imposing taxes or asking for donations from visitors to help protect the endemic species and natural environment that make it one of the world’s biodiversity hotspots.
A welcome charge
Indonesian inbound operators say Bali’s tourism levy, which is a low US$10 equivalent, is not met with resistance, especially not European travellers who are used to higher tourism and accommodation taxes within Europe.
However, they feel that applications and payment systems could be improved. Presently, travellers are required to access a different link each for visa-on-arrivals, e-customs declaration, and the Bali Tourism Levy.
Ricky Setiawanto, director of business development at Panorama Destination, remarked that a single channel for all procedures would have been better for travellers.
Miyajima’s tourist fee, which is small change for travellers, has also not met with resistance.
Will it work?
When asked if the entry fee has helped to ease overcrowding on the famed island, Hatsukaichi City’s Miyajima Planning and Coordination Division, director, Shunji Mukai, told TTG Asia that “there has been no change in the number of visitors before and after the introduction of the Miyajima Visitor Tax”.
However, all is not lost, as the city is assured of “stable and continuous annual revenue of 350 million yen as a financial source” – a hefty amount that is being put to good use, from “improving transportation access and enhancing amenities such as cleaning and maintaining toilets and rest areas, to projects related to the preservation and inheritance of Miyajima’s traditions and culture”.
One such project is the Another 1000 Years for Miyajima project, launched in 2023 to promote the development of Miyajima as a sustainable tourism destination with activities for everyone.
Mukai is certain that the Miyajima Visitor Tax is a necessary system, as it makes travellers “bear some of the costs” of realising tourism that “adequately addresses the needs of visitors, tourism industry, environment, and host communities while fully considering the current and future impacts on the economy, society, and environment”.
“Visitors are required not only to be travellers and consumers but also to engage with the community as contributors to the creation of sustainable tourism destinations,” stated Mukai.
Proper and sustainable management of a destination is critical if it wishes to be a “repeatable” attraction for travellers, opined Hiroshima Tourism Association’s chief producer and executive director, Shotaro Yamabe.
“In the development of repeatable tourism destinations, it is essential to ensure the satisfaction of tourists,” said Yamabe, adding that destinations must at least maintain “basic qualities” to avoid stressing visitors and the Miyajima Visitor Tax will help fund the delivery of such basic qualities.
While these fees will enable travellers to contribute to positive destination development and care, industry players have called for transparency in tracing collection and usage.
Ewan Cluckie, founder of Thailand-headquartered Tripseed, a destination operator and tour distributor committed to responsible tourism, said such financial initiatives “require proper enforcement and transparency in how funds are being allocated, something which rarely happens in reality”.
Adjie Wahjono, operations manager, Aneka Kartika Tours & Travel in Indonesia, said the tour operator community looks forward to the Bali Tourism Levy’s contribution to culture and nature preservation, and expressed hopes that the fund would also support trade promotions.
Besides such financial measures, PATA CEO Noor Ahmad Hamid said destinations could encourage better tourist behaviour through education, such as by explaining the benefits of bringing their own water bottles while exploring destinations and ordering food in moderation. Tourism organisations could also inform travellers of the challenges of overtourism, so that they can make “informed decisions on where to visit, based on the destination’s carrying capacity”.
An example of a destination-led campaign to improve travellers’ behaviour can be found in Palau, which launched an app in 2022 that allows users to accumulate points by completing eco-friendly tasks such as offsetting their carbon footprint, frequenting responsible businesses, and participating in community regenerative tourism projects.
Cluckie is all for traveller education too, saying that travellers should be encouraged to explore second-city destinations or to make the trip during low seasons so that they would contribute to a more stable flow of tourism income throughout the year.
He also urged travel industry players to do better to achieve responsible tourism growth.
“DMOs, overseas travel agents, and tour operators have a huge role to play in communicating the benefits of more sustainable trips to consumers. At the back end, DMCs must ensure their operations and procurement strategies are genuinely aligned with (sustainable) goals (instead of) prioritising profit over community well-being,” he said. – Additional reporting by Mimi Hudoyo
