IATA oppose the introduction of tourist tax in Bali

Bali airportThe International Air Transport Association (IATA) opposed the introduction of a tourist tax in Bali, which should be included in the air ticket price.

The association, which includes more than 290 airlines, accounting for 82% of the total air traffic in the world, sent a letter to Bali Governor Wayan Koster.

“The introduction of a tax on foreign tourists would directly contradict the adopted taxation policy supported by the International Civil Aviation Organization (ICAO)”, said the Regional Vice President for Asia Pacific of IATA, Conrad Clifford.

The Bali administration has prepared a draft resolution on the contribution of tourists to environmental protection and preservation of the culture, which is being discussed with the Bali Legislative Council. The council and administration are considering whether a new fee should be included in the price of air tickets or charged at special counters at the airport.

Conrad Clifford said that Indonesia should adhere to the ICAO taxation policy and minimize all forms of taxation of international air transport, including taxes directly from passengers or shippers.

“It is worth noting that international passengers at Bali’s Denpasar airport pay a maintenance and security fee of 225,000 rupees (15.9 USD)”, said Conrad Clifford. He added that without complying with the principles of ICAO, international aviation will be overloaded with excessive and unfair taxation, which, in turn, will significantly limit the economic and social benefits derived from air travel.

In 2018 more than six million tourists visited Bali. About 22.43% of foreign visitors last year came from China, while 19.26% came from Australia.