Bali Governor Reports Hotel and Restaurant Tax Increase Amid Middle East Conflict
Badung (ANTARA) - Bali Governor Wayan Koster noted that the Hotel and Restaurant Tax (PHR) in Bali has increased despite the impact of Middle East conflicts.
“PHR from 1 January to 27 May 2026 reached Rp2.89 trillion based on data I received, compared to Rp2.62 trillion for the same period in 2025, showing a year-on-year increase,” Koster said at the Bali & Beyond Travel Fair (BBTF) 2026.
If projected to reach Rp2.9 trillion by 31 May, this would mean a rise of nearly Rp300 billion compared to the same period in 2025, even during the Middle East conflict.
“The hotel tax increased from Rp1.7 trillion to Rp1.8 trillion, and restaurant tax rose from Rp885 billion to Rp1 trillion. The data is clear as it’s an online system, and while Buleleng and Klungkung saw declines, all other regencies reported increases,” Governor Koster stated.
The Bali Provincial Government views the PHR figures during global dynamics as indicating that Bali’s tourism remains resilient, with no negative impact on tax revenue.
However, Koster acknowledged the noticeable impact of the Middle East conflict is a decline in foreign tourist arrivals.
From January to April 2026, cumulative foreign tourist arrivals fell by 0.23%, with the sharpest drop in March and April.
During the Middle East conflict, April saw a 9% decline in foreign tourist arrivals, but conditions improved in May with only a 7% drop, indicating gradual recovery.
“The decline is easing, but when looking at the impact on hotel occupancy rates and hotel tax revenue, which has increased, this means that despite fewer foreign tourists, PHR has not declined,” Governor Koster said.
According to the Governor, the current priorities, aside from improving connectivity, management, and tourism infrastructure, are ensuring tourists stay in licensed accommodations, as many are staying in unlicensed villas and guesthouses that evade taxes.
“Bali has many illegal villas and guesthouses that don’t pay taxes, rented out cheaply and marketed through AirBnB and others. I’ve already instructed that unlicensed properties must no longer be advertised as they undermine the tourism sector,” he added.