Bali fears tsunami could affect recovery

Bali fears tsunami could affect recovery

Slobodan Lekic, Associated Press/Bali

Still recovering from terrorist attacks and the SARS crisis, Indonesia's premier travel destination is facing a new concern - a possible downturn because of the earthquake and tsunami disaster.

Although not directly affected by the waves that devastated the northern tip of Sumatra some 2,800 kilometers (1,800 miles) away, many people in Bali are worried that the Dec. 26 tragedy could derail their fledgling recovery.

"We have had cancellations by foreigners in the past month," said Sri Uluwati, manager of a complex of villas for rent in Bali's exclusive Seminyak district. "We managed to rent some villas to drop-in tourists, but this is not good news."

Travel agents say that tourist arrivals from Japan and Australia -- Indonesia's biggest markets -- dipped only slightly after the tsunami because visitors from the Pacific rim region know that Sumatra is at the other end of Indonesia's vast archipelago.

Still, many industry operators are furious with the government in Jakarta for allegedly doing nothing to explain this fact to potential visitors from other parts of the world, who may be less familiar with Indonesia's geography.

Bali resorts and other businesses broadcast banner headlines on their websites to inform interested guests that the island is far away from the tsunami-affected coastlines of Sumatra.

With over US$5 billion in earnings, Indonesia's tourism sector has emerged in the past decade as one of the country's largest non-energy, foreign-currency earners. Bali accounts for about 60 percent of the industry's income.

But the number of visitors plummeted in the wake of the terrorist bombings in October 2002 that killed more than 200 people at two nightclubs in Bali's Kuta district, most of them foreigners.

The slump, which saw the number of visitors drop to about 990,000 from 1,290,000 the previous year, was exacerbated by the severe acute respiratory syndrome (SARS) outbreak that curtailed travel throughout Asia in 2003 and general uncertainty generated by the U.S.-led invasion of Iraq.

Nearly a third of Bali's workers lost their jobs, officials estimated. Resort restaurants were eerily empty and many hotels had so few guests that owners closed them down for maintenance.

Bali had been a destination since the 1930s for travelers seeking a tranquil refuge at an exotic island retreat. It became internationally famous for lush tropical jungles, dramatic volcanic scenery, emerald green rice terraces and elaborate temples.

Bali's culture and physical beauty fueled the tourism sector's expansion for decades. That was deflated overnight by the bombing.

More than two years on, the island outwardly seems on track for a full recovery. Tourist numbers rose steadily, and in 2004 hit a record 1,450,000 arrivals. But earnings have lagged behind those prior to the 2002 bombings, and the economy remains vulnerable.

Since the bombing "we have only been getting tourists from this region whose length of stay is short. Long-haul tourists from Europe have still not returned," said Meity Robot, vice chairman of the Indonesian Tourism Council.

But Meity is hopeful the tsunami -- which killed more than 123,000 people in northern Sumatra -- will not have a long-term effect on tourism.

"Yes, the tsunami will have some impact on Indonesia's tourism industry, but it will not be significant," she said. "We are still known for great surfing and diving, exotic lifestyle, scenery and warm hospitality."

She noted that foreign governments had issued travel warnings for tsunami-hit destinations such as Phuket in Thailand, which could make Bali a more attractive alternative.

Residents dependent upon the tourist trade dreading the possibility of another downturn.

"I lost my job after the Kuta bombings," said Dodi Rizal, a taxi driver in Bali's provincial capital, Denpasar. "Of course we are all worried that this could happen again because of the tsunami."

Nini, a waitress in a restaurant on Seminyak's trendy Jl. Oberoi, remembers the empty beaches, shops, hotels and nightspots that followed the terrorist attack.

"We pray that the (effects of the) tsunami will not hit us here," said Nini.

"It has caused enough devastation in Aceh."