After several false starts, Indonesian authorities appear ready to abolish the $50 visa on arrival (VoA) fee that all Australians holidaying in Bali must pay.
It could happen before October.
This represents a saving of $200 for a family of four at a time when many families are suffering from cost of living pressures.
The VoA was originally abolished in 2016, resulting in a 15 per cent increase in Australians travelling to Bali and a new annual record of 1.2 million arrivals. However, due to COVID restrictions, the VoA was reinstated, further driving up the cost of a Bali holiday.
According to the president of the Perth-based Indonesia Institute, Robbie Gaspar Indonesia, they are well aware that visa fees deter foreign tourists and therefore welcome the move to abolish the actual “arrival tax”.
“We understand that Indonesian Tourism Minister Sandi Uno will recommend that about 20 countries, including Australia, be granted visa-free entry to Indonesia, including Bali, before the inauguration of the country’s new president in October,” says Gaspar.
“This will make it more affordable for Australian families and we therefore expect a further increase in the number of holidaymakers visiting our favourite island.”
Arrivals have already recovered strongly post-COVID, with more than 410,000 Western Australians travelling to Bali in the last 12 months.
Confusion over the timing of the VoA fee abolition was influenced by Australia’s decision to increase visa application fees for both Chinese and Indonesian nationals by a whopping 35 percent – or $190 per person – starting late last year.
“This decision has not only frustrated the Indonesian authorities, but also represents a significant incentive for tourists from Indonesia and our region to spend their holidays in Australia,” explains Mr Gaspar.
“Last year, 9.1 million Indonesians travelled abroad, but only 11,000 chose Perth as their destination, as travellers from over 70 other countries took advantage of the visa-free entry now offered to them.”
Western Australia Premier Roger Cook recently announced the launch of direct flights between Perth and China, set to begin in the next few months. China has since announced it will offer visa-free entry to Australians, but Australian authorities have made the baffling decision to increase red tape and entry visa fees, providing an incentive for Chinese nationals to holiday here.
Mr Gaspar believes Australia is lagging behind in the race to increase international tourism, which would boost our economy.
“We still view Asia with caution and believe that we need to make it harder for people from our region to get to know us. That’s really disappointing,” he says.
Meanwhile, Australian families will still have to pay the VoA arrival fee on arrival in Bali until the new regulations are officially announced. This will give families more money to spend when they leave Bali International Airport and head off on their Christmas holiday.
+ Ross Taylor is founder and former president of the Indonesia Institute.