A month after, Bali's economy still devastated<\/p>\n
Rita A. Widiadana
\nThe Jakarta Post
\nDenpasar<\/p>\n
One month after the tragic bombing in Kuta on Oct. 12, Bali
\nhas yet to see any encouraging signs for the thousands of people
\nworking in tourism and tourism-related industries, previously the
\nbackbones of the island's economy.<\/p>\n
Hotels, restaurants and cafes are now deserted. Souvenir
\nshops, boutiques and handicraft stalls are still open but devoid
\nof visitors. Travel agents have received mass cancellations from
\naround the world. International airlines, including Qantas,
\nSingapore Airlines, China Airlines and Japan Airlines have
\nreduced their flights to and from Bali.<\/p>\n
The bombing of Bali's most famous (or probably notorious)
\ntourist destination, Jl. Legian in Kuta, has had a massive impact
\non the island's economy, which mostly relies on local and foreign
\ntourists.<\/p>\n
Panudiana Kuhn, head of international relations for Bali's
\nChamber of Commerce and Industry, told the press during a meeting
\non Monday that the bombing had really cut the island to the
\nquick.<\/p>\n
When the terrorists attacked the World Trade Center (WTC) on
\nSept 11, 2001, the economic impact was also great, but Bali was
\nstill considered safe. People were still planning to come here,
\nsaid Kuhn, the owner of large-scale garment factories and hotels.<\/p>\n
\"The bombing of Kuta has shattered all our expectations and
\npredictions. It has also stamped Bali as a fearsome and
\nterrorist-riddled place,\" he said.<\/p>\n
Recent data from the government reveals that occupancy rates
\nfor hotels in Bali dropped from above 70 percent on Oct. 11 to
\ntheir lowest ebb at 14 percent on Nov. 12. \"We can only survive
\nif our hotels are at least 40 percent occupied. With less than 20
\npercent occupancy rates, we are not certain whether we can pay
\nelectricity bills or our employees' wages,\" he said.<\/p>\n
Bali has hundreds of star and non star-rated hotels with
\nthousands of employees serving the tourism industry.<\/p>\n
Tourist arrivals in Bali through Ngurah Rai Airport in Kuta
\nhave drastically fallen from an average of 5,219 per day before
\nOct.12 to only 500 on Nov. 12.<\/p>\n
The drastic drop in the number of visitors to Bali has been
\nexacerbated by the issuance of travel advisories by a number of
\ncountries, such as the United States, Australia and some European
\nnations.<\/p>\n
In addition to the travel advisories, some international
\nairlines are also refusing to transport export cargo from
\nIndonesia to overseas destinations.<\/p>\n
\"Australia's Qantas, for instance, has refused to take cargo
\nfrom Indonesia for security reasons, while other airlines have
\nimposed higher cargo charges to the United States,\" Kuhn said,
\nadding that this would affect Bali's exports.<\/p>\n
Bali exports garments, handicrafts, furniture, tropical fish,
\nmarine products and agricultural products such as coffee, vanilla
\nand chocolate.<\/p>\n
\"Given such a gloomy situation, it is no wonder that now the
\nBalinese people are seeking to return to agriculture, which is
\ncrisis-resistant,\" Kuhn said.<\/p>\n
Formerly famous for its extensive rice fields and its
\nelaborate Subak traditional irrigation system, Bali has to face
\nthe bleak reality that it has frequently sacrificed its rich
\nagricultural resources to make way for various types of tourist-
\nrelated industry.<\/p>\n
Thousands of hectares of fertile land and rice fields have
\nbeen transformed into glittering shopping centers, five-star
\nhotels and other symbols of luxury<\/p>\n
I.A. Agung Mas, a lecturer in Udayana University in Denpasar,
\nhas frequently called on the Balinese people and the island's
\ngovernment to redesign and reshape its development programs,
\nwhich he deemed to be placing too much stress on the tourism
\nsector.<\/p>\n
\"The Balinese people are addicted to tourism. It is very
\ndifficult for these people and officials to separate their lives
\nfrom tourist-related activities. Tourism has become flesh and
\nblood for many of us,\" she asserted.<\/p>\n
Like it or not, she said, 80 percent of the approximately
\nthree million inhabitants of Bali live in rural areas and work as
\nfarmers. The Kuta bombing could provide a fresh start for Bali
\nand allow it to change its development paradigm.<\/p>\n
\"Tourism should be viewed as one development resource. There
\nare several other profitable and secure pillars, including
\nagriculture, the maritime potential and small-scale industries,\"
\nsaid I Dewa Ngurah Supartha, an expert in agribusiness, as quoted
\nby local magazine Sarad.<\/p>\n
He further said that during the severe economic crisis between
\nl997 and l998, coffee farmers in several areas of Bali, such as
\nBuleleng regency, North Bali and Plaga village in Badung regency,
\nhad enjoyed bountiful harvests.<\/p>\n
\"Agriculture is not merely about planting rice. We have to
\nreally develop a modern farming system and sophisticated
\nagroindustries if we want to profit from this sector,\" the
\nlecturer said.<\/p>\n
So far, he added, there had been discriminatory treatment
\nhanded out by the local government against those working in the
\nagricultural sector. \"No incentives were provided for farmers,
\nwhich led to disappointment,\" he said.<\/p>\n
I Made Putu Yadnya, chairman of the Badung Chamber of Commerce
\nand Industry, agreed, saying Bali could transform its simple-
\ntraditional farming into well-planned agroindustries. \"Thailand
\nand the Philippines have already done this over the last few
\ndecades. And they have been very successful,\" commented Yadnya.<\/p>\n
He admitted that it would be quite difficult to change the
\nsystem abruptly.<\/p>\n
\"At the very least, we have to start creating a master plan
\nfor agricultural development, including strict law enforcement
\nregarding the land use system, which is frequently abused by
\ninvestors,\" Yadnya said.<\/p>\n
It would be better if there were to be close links between the
\nagriculture and tourism industries. \"We could develop agro-
\ntourism or grow the various fruits, vegetables and other crops
\nneeded by hotels and restaurants in order to narrow the gap
\nbetween agriculture and the tourism industry,\" he said.<\/p>\n
The problem remained that the Balinese people were still
\nreluctant to leave the glamorous and dollar-based tourism
\nindustry and start getting their hands dirty tilling the rice
\nfields.<\/p>",
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