Bali to refocus tourism market in Asia

I Wayan Juniartha, The Jakarta Post, Denpasar

The tourism industry in Bali has been forced to re-focus its marketing priorities towards Asia, particularly China, a sleeping giant with great potential, following a decline in direct foreign tourist arrivals in wake of the Sept. 11 attacks.

Head of Bali Tourism Office I Gde Pitana said in Denpasar, Bali on Saturday that there is a general understanding between the local bureaucracy and tourism officials that they need "alternative markets, due to the drastic drop in the number of American and European tourists arriving here."

"China is one of the most promising alternatives," he said.

"Let's not forget that the Asian and Pacific countries contribute up to 70 percent of the total amount of direct foreign tourist arrivals," he added.

"The second alternative is the domestic market," he said, referring to the fact that domestic travelers have helped boost the island's hotel occupancy rate during difficult months.

Last September, hotel occupancy rates reached 64.58 percent, before falling to 53.48 percent in October, and again to 51 percent in November.

With thousands of domestic travelers flooding Bali for Christmas and New Year's celebrations, the occupancy rate jumped to 73 percent in December.

The tourist industry, he said, would also increase the scope of its promotion and marketing blitz to include Australia and Japan, traditionally two of Bali's biggest markets.

"Japan contributes an average of around 350,000 tourists per year; Australia around 250,000 tourists," he said.

The Sept. 11 attacks inflicted a heavy toll on the Bali tourist industry, with the overall number of direct foreign tourist arrivals decreasing by 4.9 percent in September 2001, compared to the same month the year before.

In October it fell by 25 percent, and the worst took place in December when it saw a decrease of 33 percent.

"The American market recorded the sharpest decline, with a decrease averaging 70 percent during those months. Meanwhile, Japanese market was down by 14 percent," he said.

In total, the number of direct foreign tourist arrivals to Bali in 2001 dropped by 4.7 percent -- or 1,355,282 tourists, compared with 1,412,839 tourists in 2000.

"We have sent many delegations, members of which included high-ranking government officials, to both Japan and China to mend our image there," Pitana said.

"And we have already received positive responses from both countries. Next March, China's Foreign Ministry and the Chinese National Travel Authority (CNTA) will announce Indonesia as a tourism destination for Chinese travelers," Pitana said.

People both markets have a high level of belief in what their government said. "However, the Japanese market is very sensitive about health and security matters."

According to Pitana's projection, this year Bali will be able to attract up to 200,000 Chinese travelers, a steep increase from 1,767 (Chinese) tourists the island received last year.

Separately, the chairman of the Association of Indonesian Travel Agents (ASITA) Bali, IGB Yudara, has expressed his eagerness to accept the Chinese travelers.

So far, only 13 out of 300 travel agents have been declared qualified to handle Chinese tourists.

The 13 travel agents have passed all mandatory requirements issued by the government. One of them says that each travel agent must employ at least five Mandarin-speaking tour guides.

Currently, there are only 65 travel agents in all of Indonesia that are qualified to handle Chinese travelers, including the 13 members of ASITA.

The demonstrate its seriousness to catch the Chinese market, government plans to open two consulates -- one in Guangxou and one in Shanghai -- in China this year. Other types of "red tape" will also be loosened up and simplified.

"The visa application process for Chinese travelers will take much less time, and be much cheaper. It will cost only US$10 -- $20 less than the previous cost," Yudara said.

Pitana predicted that, by March 2002, the Bali tourist industry would start recovering from the fallout of the terror attacks of Sept. 11.

"Yet, realistically, it will be a slow recovery."