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Bali is set to impose a US$10 (S$13.60) levy on foreign tourists that will go towards environment and cultural preservation, The Straits Times reports. 

The Bali administration has drafted a bylaw on the levy, which it has been discussing with lawmakers since December.

Bali Governor Wayan Koster said the revenue from the tourist tax would be used to fund programmes on preserving the environment and Balinese culture.

"This will give us better fiscal space to support the development of Bali," Koster said at the Bali Legislative Council building.

A renowned tourist destination, Bali welcomed 5.7 million foreign tourists in 2017, most of whom came from China and Australia. The number was expected to have topped 6 million in 2018, when the island province hosted international events such as the Annual Meetings of the IMF-World Bank.

The province has been battling against the growing volume of plastic waste on its beaches and in its waters. Some 3,800 tonnes of waste are produced in Bali every day, of which only 60 per cent end up in landfills.

Plastic waste became so unbearable that the island's administration last year banned single-use plastics including shopping bags, styrofoam, and straws.

It is hoped that the ban will slash the amount of plastic polluting Bali's marine environment by 70 per cent within a year.

Koster said he is optimistic that the tax would not discourage tourists from visiting the island.

"Tourists will understand (the regulation). They will be happy to pay it as it will be used to strengthen our environment and culture," he said.

Bali is not the only tourist destination to have imposed a tax on travellers. Japan this month began collecting a departure tax of 1,000 yen (S$12.40) on visitors to fund its tourism infrastructure.

Koster said Bali's levy will be imposed only on foreign tourists, not domestic tourists.

"Most foreigners come to Bali for a holiday, local tourists only come to visit their family, have meetings or for their institution's events," he said, adding that the subject of the levy was still under discussion.

The Bali legislature is deliberating how the tax will be collected. The council and the administration are considering whether the levy should be included in the airline ticket or collected at special counters at the airport. The first option is seen as more feasible with the help of airlines.