Bali blasts impoverish thousands<\/p>\n
Agence France-Presse, Kuta, Bali<\/p>\n
The bombers who targeted Western holidaymakers on the resort
\nisland of Bali one year ago also impoverished hundreds of
\nthousands of Indonesians, a report released on Monday said.<\/p>\n
The report on the impact of the nightclub blasts said
\n\"probably hundreds of thousands of people\" have experienced
\nsubstantial cuts in working hours and salaries for a sustained
\nperiod since the crisis began, while many others have lost jobs
\nand livelihoods.<\/p>\n
The report by the United Nations Development Program, the U.S.
\nAgency for International Development and the World Bank, says the
\nonce prosperous \"crown jewel\" of Indonesian tourism is suffering
\nmore than expected.<\/p>\n
\"It is clear now that the crisis is deeper and longer lasting
\nthan at first anticipated, giving greater urgency to the need for
\neffective action,\" it said.<\/p>\n
Tourist arrivals are unlikely to return to normal until next
\nyear at the earliest, it warned.<\/p>\n
The bombings, blamed on the al Qaeda-linked Jamaah Islamiyah
\n(JI), killed 164 foreign holidaymakers and 38 Indonesians and
\nprompted a tourist exodus.<\/p>\n
They shattered \"the image of a peaceful, innocent Bali,\" the
\nreport said, and the war in Iraq and the SARS outbreak were added
\nblows.<\/p>\n
Tourist arrivals are recovering but revenue is lagging, with
\ndeep discounts needed to attract new visitors -- who spend less
\nthan traditional ones.<\/p>\n
The August hotel bombing in Jakarta, which killed 12 people
\nand is also blamed on JI, \"highlights the continued vulnerability
\nof Indonesia's tourist industry and economy to terrorist
\nattacks.\"<\/p>\n
Average income islandwide fell by 43 percent between October
\n2002 and May 2003 and some businesses have seen turnover drop by
\nmore than 60 percent. Between January and April, \"anecdotal
\nevidence suggests\" that up to three-quarters of hotel workers
\nwere either working fewer hours or had been temporarily laid off.<\/p>\n
More than half of small and medium industries laid off
\nworkers. Some 31 percent of schools, mainly in the impoverished
\nnortheast of the island, reported students dropping out this
\nyear.<\/p>\n
But this represented less than one percent in terms of student
\nnumbers.<\/p>\n
\"There are always a lot of dropouts,\" World Bank country
\ndirector Andrew Steer told a press conference at which the report
\nwas released.<\/p>\n
\"The extent to which this increased this year was not as great
\nas some of us had feared and that is a great tribute to the
\ncommunity system here in Bali.\"<\/p>\n
The report, prepared in cooperation with the Indonesian
\ngovernment, urged national and regional administrations to focus
\non maintaining and improving security.<\/p>\n
U.S. ambassador Ralph Boyce, at the same press conference,
\nstressed \"the importance of continued vigilance on the part of
\nIndonesian authorities to ensure that Indonesia remains peaceful
\nand free from further terrorism.\"<\/p>\n
The report said Bali should diversify its economy to absorb
\nfuture shocks by strengthening exports which build on existing
\ntourist-oriented industries.<\/p>\n
The central government should study ways to address crises
\nmore effectively, especially following the devolution of power to
\nregions, it said.<\/p>\n
\"Responses (to the crisis) have been fragmented and there has
\nbeen a lack of focus on the most vulnerable,\" the report said.<\/p>\n
The government should consider scrapping plans to start
\ncharging many tourists a US$35 visa fee, it said.<\/p>\n
The report warned that the golden days may be gone forever and
\n\"recovery in the sense of return to past conditions may not be an
\noption for Bali\" given global tourism trends.<\/p>\n
The longer-term agenda of regenerating the island as a
\ndestination and building a more diverse economy should not be
\ndelayed, the report says.<\/p>",
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"sponsor": "Okusi Associates",
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