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How to Finance the Bali Tourism Board

Bali Chamber of Commerce Chairman Calls for Private Sector Involvement in Collecting Hotel & Restaurant Taxes as a Means to Raise Funds for the Bali Tourism Board.

(4/28/2007) Money, or more precisely the lack thereof, continues to plague efforts by the Bali Tourism Board (BTB) to launch an effective tourism marketing organization for the Island. Repeated efforts in the past by the tourism stakeholder organizations that comprise the BTB to seek financial support from Bali's Government have all come to naught.

As reported in the Indonesian-language BisnisBali, the Chairman of the Bali Branch of the Indonesian Chamber of Commerce, Gede Wiratha, recently told a meeting of BTB officials that an organization without funding was little more than a "toothless tiger." According to Wiratha, "without money, BTB can do nothing to advance Bali's tourism."

Examining the various options available, Wiratha is suggesting that BTB establish a Yayasan or Foundation empowered to raise funds for BTB's tourism promotion activities. Among some of the possible funding avenues that Wiratha feels the proposed Yayasan BTB could investigate is seeking a share of the current Hotel & Restaurant tax (PHR) collected on the island.

Wiratha pointed out that the current PHR tax collected by the Government is only a small fraction of the actual tax potential. By involving the private sector in the tax collection process, according to Wiratha, the amount of tax collected could grow dramatically, allowing a profit sharing arrangement with the proposed Yayasan BTB.