Bali plans to impose a US$10 tax for all foreign tourist arrivals.
Revenue will go toward environmental works and protection of cultural assets, said Bali governor Wayan Koster.
"This will give us better fiscal space to support the development of Bali," Koster said.
The Bali legislature has drafted a new law but the mechanism of the levy and dispersal of funds is still under discussion.
No rollout date has been disclosed yet.
Koster defended the decision to impose the fee on foreign travellers only and exempt domestic tourists.
"Tourists will understand. 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 added.
Bali is trying to combat the growing problem of plastic waste strewn on its beaches and in the ocean.
The island generates more than 3,000 tonnes of rubbish every day.
It has already taken steps to ban single-use plastics such as straws and plastic bags but remains to be seen how effective this will be.
