Hotel and Restaurant Sectors Exceed Tax Targets Amid Rising Tourist Influx
Batam’s tourism sector has seen a substantial increase in tax revenue, growing by 20% in 2024. The rise, reported by the Batam Regional Revenue Agency (Bapenda), reflects strong performances from the hotel and restaurant industries. The surge is largely attributed to a sharp increase in international tourist arrivals, surpassing one million visitors by October 2024.
The Batam Regional Revenue Agency (Bapenda) has confirmed that tax collection from the tourism sector has exceeded expectations in 2024. The hospitality and restaurant industries played a key role, with hotel tax surpassing projections and restaurant tax nearing its target. Officials believe this growth signals a strong post-pandemic recovery for Batam’s tourism economy.
Significant Growth in Tourism Tax Revenue
According to Ardiwinata, Head of Batam’s Department of Culture and Tourism (Disbudpar), the total tax collected from the tourism sector in 2024 reached SGD 29.69 million (IDR 357.7 billion), a 20% increase compared to SGD 24.02 million (IDR 289.2 billion) in 2023. He emphasized that hotels remained the largest contributors, highlighting a growing demand for accommodations.
Hotels and Restaurants Outperform Expectations
Hotel tax revenue reached SGD 13.27 million (IDR 159.96 billion), surpassing its target of SGD 13.08 million (IDR 157.5 billion) and achieving 101.56% of the projected goal. The restaurant sector also made significant contributions, generating SGD 12.53 million (IDR 151.05 billion), or 93.30% of its target of SGD 13.43 million (IDR 161.9 billion). Meanwhile, entertainment sector tax revenue totaled SGD 3.88 million (IDR 46.73 billion), meeting 95.20% of its target of SGD 4.07 million (IDR 49.09 billion).
Comparing 2023 and 2024 Performance
The hospitality industry’s performance in 2024 marked a significant improvement from 2023. That year, hotel tax revenue was SGD 10.53 million (IDR 126.88 billion), meeting 93.29% of its target. Restaurant tax revenue totaled SGD 10.67 million (IDR 128.55 billion), achieving 80.51% of the target, while entertainment tax revenue stood at SGD 2.80 million (IDR 33.77 billion), fulfilling only 65.49% of its goal.
Batam’s international tourism has been a major factor behind the rise in tax revenue. By October 2024, the number of foreign visitors reached 1,048,297, significantly boosting demand for hotels, restaurants, and entertainment venues. Officials believe this upward trend will continue in 2025, further strengthening Batam’s economic position.
The Batam Regional Revenue Agency (Bapenda) is set to implement several initiatives to enhance tax compliance and collection in 2025. Secretary of Bapenda, Aidil Sahalo, announced:
– The target for hotel tax in 2025 has been set at SGD 13.45 million (IDR 162 billion).
– The agency will expand the use of digital tax recording devices and introduce SIMREK, a new digital billboard tax application.
– The “Kader Pajak” program will be launched to engage local communities in tax awareness and compliance.
Batam’s economic growth translates into better tourism infrastructure, improved hospitality services, and a more vibrant entertainment scene. As the city continues to expand its tourism sector, visitors can expect enhanced facilities, new attractions, and an overall improved travel experience. Additionally, the strong economic recovery makes Batam an increasingly attractive destination for investment in the hospitality and service industries.
Sources: Bisnis Indonesia, Pos Metro (2025)
Keywords: Batam Tourism Revenue, 20% Increase 2024, Tax Surge Growth
