Bali to recover from latest bombings : Industry Organization
Bali to recover from latest bombings : Industry Organization
Phelim Kyne Dow Jones/Jakarta
Tourists inured to the risk of global terrorism are insulating Indonesia's resort island of Bali from a serious downturn from the suicide bombings that killed 22 people on Oct. 1, a regional tourism industry representative said recently.
Bali hasn't suffered the massive visitor exodus it endured after the far deadlier October 2002 terror bombings because tourists recognize terrorist attacks as a global phenomenon unrestricted to specific destinations, Pacific Asia Travel Association Vice President Peter Semone told Dow Jones Newswires.
"It's part of the 'new normal'...travelers are becoming a bit more resilient, " Semone said.
"They're starting to recognize (terror attacks) can happen anywhere and won't let them affect their travel plans."
Semone said PATA data indicated relatively few foreign tourists had discontinued their Bali vacations because of the bombings, although new bookings to the island up to middle of November are down 20 percent to 30 percent from normal levels.
The Office of State Minister of Culture and Tourism said last Friday that Bali had returned to "business as usual" and that the island's hoteliers had recorded only "limited" cancellations as of Oct. 5. Domestic and regional markets have also shrugged off the Oct. 1 bombings.
"We see those numbers as a good sign that tourism on Bali won't get as hammered as last time (in 2002)," Semone said.
"Bali will suffer a little bit, but will turn around quickly."
Tourism contributes around 5 percent of Indonesia's total annual gross domestic product, and the bulk of foreign tourism dollars are spent on Bali.
The October 2002 bombings which killed 202 people, mostly foreign tourists, crippled Bali's tourism industry and roiled Indonesia's currency and equity markets in its aftermath.
Bali hotel occupancy rates fell to historic lows around 10 percent two weeks after the 2002 bombing, contributing to a 2.3 percent on-year decline in Indonesia's tourist arrivals to 5.03 million, official data show.
In contrast, in July, Bali's hotels enjoyed a 60 percent occupancy rate.
However, as of the first eight months of the year, Indonesia was still recovering from the 2002 Bali blasts and the pair of terror bombings in Jakarta in 2003 and 2004. From January to August, the country saw a 5.4 percent decline in foreign tourist arrivals from a year earlier to 2.85 million, according to data from the Central Bureau of Statistics issued last week.
Semone said Bali's hotel bookings for the traditionally busy Christmas period will be the litmus test of the extent to which the island remains an attractive tourist destination after the Oct. 1 bombings.
"People are still booking...but the big question about Bali will be from November to Christmas," Semone said.
Bali should look to domestic and regional tourists to cushion any potential decline in tourist numbers from North America and Europe.
"Asians will always travel to Asian destinations...and Bali is still a lot safer than Jakarta (for domestic tourists)," Semone said.
Jakarta has been the target of terror blasts twice since the 2002 Bali bombings. Jakarta's J.W. Marriott hotel was the target of an August 2003 suicide bombing which killed 12 people and the Australian Embassy in Jakarta was hit by a September 2004 blast that killed 10 people.
Bali's tourism industry faces a dilemma in maintaining public confidence in the island's safety without ruining its reputation as a relaxing tourist destination, Semone said.
Widespread implementation of the strict security measures that have turned Indonesia's five-star hotels into fortress-like encampments would detract from the atmosphere that is the key to Bali's tourism success.
"Unfortunately the beauty of the Bali tourist product is the fact it's bohemian and relaxed," Semone said.
"It's very difficult to harden the (security of the) tourism product while maintaining ...the Balinese charm."