Balinese tourism damaged, not yet dead

M.Ali, MBA student, Nottingham University, United Kingdom

News regarding the twin trades of tourism and travel has been very bleak recently. Just over a year ago, the terrorist attacks in the U.S. caused aftershocks throughout the world from which it is slowly recovering. This year, the series of terrorist attacks on Bali have caused a similar damaging effect and have delivered among the worst damaging blows to tourism and travel.

It is clear that these events have severely wounded tourism in Bali. The usual figure of one-and-a-half million annual visitors to Bali have dropped dramatically as a result of the Oct. 12 bombings, and many of the island's businesses are struggling to survive. Already, efforts are underway to revive interest in traveling to Bali with "two-for-one packages" and even "you decide how much you want to pay" ploys, to try and encourage tourists to return.

So far, however, the signs have not been good.

Cathay Pacific and Qantas are two major airlines that have already cut back on their flights to Bali, and hotel occupancy rates across the island have plummeted to all-time lows with single digit percentages of occupancy being recorded. Pictures of Balinese souvenir vendors and boutiques offering massive discounts on their wares and of deserted beaches have been flashed around the world, effectively deepening negative feelings about Bali.

These observations, of course, paint a very bleak picture for the future prospects of the island, but they have to be placed within the context of the wider scope of the tourism and travel industry. It must also be realized that it is still very early in the progress to recovery and revitalization of Bali's tourist industry. A wider, long-term view is more useful.

Looking at the wider world of tourism and travel shows that tour providers, travel agents and airlines all around the globe have been suffering from a major slump over the last couple of years. A case in point is United Airlines being declared bankrupt.

Many other sectors of the tourism and travel industry have been similarly affected and are being restructured accordingly.

A recent discussion with a regional representative of the Association of British Travel Agents (ABTA) revealed the extent of the problem for the British tourism and travel industry: it is estimated that "at least ten to fifteen thousand British tour and travel workers will have lost their jobs before the industry begins to pick up again." This is a downturn that is being experienced all over the world.

Egypt, for example, the primary tourist destination of the Middle East, has suffered huge losses in tourist dollars since Sept. 11. American and European travelers have largely been avoiding that destination and indeed, many other Islamic nations have fallen from favor as potential holiday destinations.

In contrast, this has created a climate of opportunity for domestic tourist markets, as they run advertising campaigns that promote the idea of "staying close to home, where it's safe". Holiday destinations are now somewhat closer to home, and this has also had a damaging effect on world tourism.

The World Tourism and Travel Agency has estimated that as many as "ten million jobs have been lost in tourism worldwide." This is another clear indicator of the magnitude and spread of the problems for tourism and travel.

Gloom and doom seems to run deep and widespread, and in this kind of climate it becomes essential to restructure, re-plan and develop strategies that will help encourage the market to restore its faith in, and consequently rechannel dollars to, places like Bali. The random and indiscriminate nature of terrorist attacks such as those that hit Bali can both undermine and, ironically, improve confidence in Bali as a tourist destination.

Certainly, people will remain concerned about the dangers of traveling, but we will also retain our need for a holiday and recognize that the random and indiscriminate nature of terrorism means that attacks may happen anywhere in the world. This, then, amounts to a recognition that there are dangers wherever we may go, but also that we cannot allow this to stop us from doing what we want and need to do.

Representatives of the ABTA suggest that, "If we always stopped to think and worry about what we are going to do, we would never do anything or go anywhere. This will be true for Bali too."

This is the reality that we should all face: The damage done to Bali and its peaceful image has been great, but it has certainly not killed Bali as a tourist destination.

Presently, it is necessary for those in Bali who make a living from the island's tourism to take stock of the difficult times and take into account that they will have to restructure and streamline their activities. Already, many migrant workers from other parts of Indonesia have been leaving Bali due to the downturn. In the longer term, however, Bali will rebound and return to its prominence as a tourist destination.

Immediately after the attacks on New York, many Europeans had second thoughts about flying to New York, but now most fly there without any fear. The same will be true for Bali, but it will take time.

Bali, the "Island of the Gods", must have faith and patience that tourism will return to revive the island's economy once again.