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.