Bali blast causes over $10 million in losses from MICE
Bali blast causes over $10 million in losses from MICE
Novan Iman Santosa, The Jakarta Post, Jakarta
Indonesia may suffer at least US$10 million in losses caused by
the cancellation of many international congresses and conventions
following the Bali bombing, further damaging the country's
fragile economic condition.
Interviewed separately on Thursday and Friday, sources from
the meeting, incentive, convention and exhibition (MICE) industry
called on the government to quickly solve the security problem.
"The bombing has really affected the Indonesian convention
industry. So far, 34 international events in Jakarta, Yogyakarta
and Bali have been canceled and another five postponed.
"I am afraid that there will be other cancellations," chairman
of the Indonesian Congress and Convention Association Iqbal Alan
Abdullah said on Thursday.
Iqbal said the financial losses were only an estimate and the
association had yet to issue an official figure.
"Let's assume there are 200 participants at each event, each
of which lasts for three days. It means each participant spends
five days in Indonesia, including their arrival and departure
days.
"Each participant is estimated to spend about US$300 to $500
daily during their stay here," he said.
Based on Iqbal's assumptions, Indonesia could suffer potential
losses of $10.2 million to $17 million from the cancellation of
34 events.
"Now we are working closely with the government and related
industries to reestablish foreign trust in Indonesia," he said.
One of the canceled events was the First PATA Sustainable
Tourism Conference, slated to take place from Wednesday through
Saturday in Tangerang, Banten.
The event was organized by Pacto Convex Niagatama, which also
suffered the cancellation of the First Asia Pacific Cleaner
Products Conference, originally scheduled to take place from
Monday through Thursday.
"The cleaner products conference was to be held at Sheraton
Mustika Yogyakarta. The event was then shifted to Phuket,
Thailand," said Pacto Convex Niagatama's public relations manager
Ika Nazamuddin.
"We suffered approximately Rp 1.5 billion ($163,000) in
financial losses from the two cancellations," she added.
Despite the mass cancellation of international events,
however, the 2002 Export Products Exhibition (PPE) recorded an
increased transaction value of 53.38 percent.
The 2001 PPE saw a total transaction value of $47.2 million,
while the value this year was $72.4 million when it was held from
Oct. 16 through Oct. 20 at the Jakarta Fairground in Kemayoran,
Central Jakarta.
"There were indeed buyers who canceled their participation at
the exhibition but most still came to the exhibition," said
Jakarta Fairground spokesman Nugroho.
"But most of them preferred to stay in Singapore instead of in
Jakarta, flying in each day.
"Only a small numbers of buyers stayed in Jakarta. They chose
hotels close to the ground," he added.
Nugroho also said that the exhibition was the most recent
international event to be held at the ground, locally known as
Pekan Raya Jakarta.
"Three musical performances are scheduled and there are no
plans to cancel or postpone the concerts.
"Concerts featuring Jamrud, Indian singers and the group F4,
from Chinese Taipei, are still on the schedule," said Nugroho.
On Friday evening, the Jakarta Convention Center (JCC) hosted
Guruh Soekarnoputra's Sri Panggung musical performance, featuring
eight leading Indonesian female singers and groups.
JCC marketing secretary Evy Hartini said two events had been
canceled at the venue after the bomb blast.
"Singer George Benson canceled his performance here and the
Women's International Club (WIC) postponed its annual bazaar
until next March.
"Domestic exhibitions and events, however, will still take
place as planned," she added.
Saturday will see the first day of a property and furniture
exhibition.
However, the promoters of other musical performances have been
forced to cancel or postpone shows involving foreign artists.
Promoter Adrie Subono of Java Musikindo said American singer
George Benson decided not to perform on Nov. 20 following a
travel warning issued by the U.S. government.
"We have refunded all ticket money. We had only sold about 20
percent of them before the cancellation," he said.
"But we have already secured a contract with singer Ronan
Keating for next February. We are also in negotiation with four
or five other artistes."
Meanwhile, the group Red Hot Chili Peppers postponed its show
at the Lotus Pond, Garuda Wisnu Kencana complex, Bali, from Dec.
14 tentatively to April 5 next year, after its European tour.