The Bali Observer

Monday, 21 September 2026

Bali hotel and restaurant tax revenue rises to Rp2.89 trillion by late May

Governor Wayan Koster said Bali’s hotel and restaurant tax revenue rose to Rp2.89 trillion by late May 2026, even as foreign arrivals weakened amid Middle East conflict concerns.

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Editor: Mursyid Sonsang

· Event date: · 3 min read

Badung — Bali’s hotel and restaurant tax revenue reached about Rp2.89 trillion between Jan. 1 and May 27, 2026, Governor Wayan Koster said during the Bali and Beyond Travel Fair in Nusa Dua, Badung. He said the figure was higher than the Rp2.62 trillion recorded in the same period of 2025.

Koster said hotel tax collections rose from Rp1.7 trillion to Rp1.8 trillion, while restaurant tax collections increased from Rp885 billion to about Rp1.04 trillion. He said the data came from an online reporting system and matched figures held by the regencies.

The governor made the comments as Bali continued to face weaker foreign arrivals in early 2026. Bali’s statistics agency said direct foreign arrivals in April totaled 553,328, down 6.41% from a year earlier, even though the monthly figure rose from March.

Koster said the decline in foreign arrivals had not yet reduced hotel occupancy or hospitality tax receipts. He also said some visitors were still staying in unlicensed accommodation, which does not contribute to the tax base.

Hospitality tax still rising

According to Koster, Bali’s hotel and restaurant tax revenue increased despite broader global uncertainty linked to conflict in the Middle East. The provincial government said the island’s tourism economy remained resilient even as some regencies saw slower collections.

Koster said Buleleng and Klungkung recorded declines, while the other regencies posted higher receipts. He did not provide a full regency-by-regency breakdown in the remarks cited by local media.

The figures Koster cited do not fully reconcile in rounded form, but the governor’s breakdown pointed to growth in both major tax categories. The restaurant component was the larger contributor to the increase.

Tourism and compliance pressure

The comments also reflected Bali’s ongoing effort to improve compliance in its accommodation sector. Koster has repeatedly urged travelers and businesses to use licensed lodging so taxes flow into official provincial and regency systems.

Separate provincial and statistical data show that Bali’s tourism sector was still drawing large numbers of visitors in 2026, even with month-to-month volatility. That helped support the governor’s argument that hospitality tax revenue could keep rising even when some foreign-arrival metrics softened.

The reported tax performance was presented as a sign that Bali’s tourism-linked revenue base remained strong, with both hotel and restaurant collections moving higher through late May. Provincial officials said the increase was visible in the online system used to track collections.

At the same time, the April arrivals data suggested the island was not immune to external shocks. That contrast underscored the gap between visitor volumes and tax receipts, especially in a market where domestic demand, spending patterns and compliance can also affect revenue.

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