Beleaguered Bali feeling ill effects from outbreak<\/p>\n
Rita A. Widiadana, The Jakarta Post, Denpasar, Bali<\/p>\n
The country's number one tourist destination has been blindsided
\nby the impact of Severe Acute Respiratory Syndrome (SARS).<\/p>\n
It has come as yet another blow to Bali, still reeling from
\nthe bombings that hit nightspots in Kuta last October and the
\ninevitable drop in visitors due to the recent war in Iraq.<\/p>\n
The chairman of the Bali Recovery Program, I Gusti Alit Putra,
\nsaid it would take a miracle to help the tourist industry rebound
\nanytime soon.<\/p>\n
"This is the hardest period in the last 30 years. In Bali, the
\ntourism and hotel industry have been the main economic pillars,"
\nsaid Alit Putra, who is also the province's deputy governor.<\/p>\n
"It has a huge multiplier impact on the people's economic
\nsituation."<\/p>\n
About 1.2 million of the island's 3 million population work in
\ntourism-related enterprises, including as travel agents,
\nhandicraft and souvenir producers, hotel suppliers, artists and
\nfarmers supplying produce to hotels and restaurants.<\/p>\n
The chairman of the Bali chapter of the Association of Travel
\nAgencies (ASITA), I Gusti Agung Prana, agreed that the impact of
\nSARS was crippling, especially as many on the island felt they
\nwere on the road to recovery earlier this year.<\/p>\n
In January, the travel industry reported an increase in
\nreservations from international clients, Agung Prana said.<\/p>\n
"Many of them were beginning to forget the bomb incidents and
\nhad regained their confidence in Bali as a safe tourist
\ndestination," he added.<\/p>\n
Even during the war in Iraq, visitors from European countries
\nand the Asia Pacific were returning. Then came reports of SARS in
\nMarch and April, which "destroyed everything", he said.<\/p>\n
The chairman of the Bali chapter of the Hotel and Restaurant
\nAssociation, I Gde Wiratha, said fears about SARS would be hard
\nto dispell.<\/p>\n
"In my opinion, many of us (in the hotel, travel and
\nrestaurant industry) will not be able to survive if the condition
\npersists for the next six months," Wiratha said.<\/p>\n
Several five-star hotels operating in Nusa Dua, Kuta and Sanur
\ncurrently report only 25 percent room occupancy, which is not
\nenough to maintain their high operational costs.<\/p>\n
"Imagine a five-star hotel with more than 600 rooms that is
\nonly occupied by 30 to 50 guests," Wiratha said.<\/p>\n
"A hotel is doing well if its room occupancy reaches at least
\n40 percent."<\/p>\n
Four- and three-star hotels are surviving, with between 40
\npercent and 60 percent room occupancy. "The saddening thing is
\naround 800,000 people are now employed in the hotel and travel-
\nrelated business," he said.<\/p>\n
Some hotels have cut operational costs by allowing their
\nemployees to take annual or unpaid leave. Others have introduced
\n15-day work months.<\/p>\n
Travel agents are also enduring tough times.<\/p>\n
"Many of us have stopped operations, especially those who have
\nclients from Taiwan, China and Japan," said the owner of Terima
\nKasih Indonesia Tour and Travel Enterprises, Eddy Sunyoto.<\/p>\n
Some have sold their offices or company vehicles to stay in
\nbusiness.<\/p>\n
Many argue that the government must do more to help Bali,
\nwhich generates 30 percent of the country's estimated US$6
\nbillion in foreign exchange revenue from tourism.<\/p>\n
"We know that the government has a large agenda and is now
\ncash-strapped. However, we urge the government and the banking
\nindustry to help," Agung Prana said.<\/p>\n
Most companies have depleted their savings to keep afloat over
\nthe past seven months.<\/p>\n
"We really need fresh funds to continue operating, as well as
\ndebt rescheduling, to avoid bankruptcy," Agung Prana said.<\/p>\n
However, Bali has also benefited from the outbreak of SARS.
\nSome organizers moved events from China or Hong Kong to Bali.<\/p>\n
Director of operations at Bali International Conference Center
\n(BICC) Alex Riva said the organization had taken steps to educate
\nits employees about SARS.<\/p>\n
In April, at the height of the SARS scare, BICC hosted the
\n52nd Annual Pacific Asia Travel Association (PATA) conference,
\nwith more 900 delegates from the Asia-Pacific region, Europe and
\nAfrica.<\/p>\n
"It was a successful conference even amid fears about SARS.
\nNobody was wearing masks, although there were delegations from
\naffected countries," Alex said.<\/p>\n
BICC has since hosted other major conferences, and Alex said
\nthey proved to be positive experiences.<\/p>\n
"The majority of my clients didn't show they were afraid of
\nthe SARS threat. They didn't even mention the trial of the Bali
\nbombing suspects," he said.<\/p>\n
"I'm pretty confident that Bali will again become a favorite
\ndestination for business and leisure (travel), as soon as the
\ntrials are over and if SARS is handled carefully," he said.<\/p>\n
Agung Prana said the government and the tourism industry must
\nlobby the World Health Organization (WHO) for official
\nverification of the country's SARS-free status.<\/p>\n
"If Canada, which has several SARS victims, could get a SARS-
\nfree certificate, Indonesia should work hard to convince WHO to
\nissue that certificate, otherwise our tourism industry will die
\nsoon," he said.<\/p>",
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