Bali's economy stiill devastated
Rita A. Widiadana, The Jakarta Post, Denpasar
One month after the tragic bombing in Kuta on Oct. 12, Bali has yet to see any encouraging signs for the thousands of people working in tourism and tourism-related industries, previously the backbones of the island's economy.
Hotels, restaurants and cafes are now deserted. Souvenir shops, boutiques and handicraft stalls are still open but devoid of visitors. Travel agents have received mass cancellations from around the world. International airlines, including Qantas, Singapore Airlines, China Airlines and Japan Airlines have reduced their flights to and from Bali.
The bombing of Bali's most famous (or probably notorious) tourist destination, Jl. Legian in Kuta, has had a massive impact on the island's economy, which mostly relies on local and foreign tourists.
Panudiana Kuhn, head of international relations for Bali's Chamber of Commerce and Industry, told the press during a meeting on Monday that the bombing had really cut the island to the quick.
When the terrorists attacked the World Trade Center (WTC) on Sept 11, 2001, the economic impact was also great, but Bali was still considered safe. People were still planning to come here, said Kuhn, the owner of large-scale garment factories and hotels.
"The bombing of Kuta has shattered all our expectations and predictions. It has also stamped Bali as a fearsome and terrorist-riddled place," he said.
Recent data from the government reveals that occupancy rates for hotels in Bali dropped from above 70 percent on Oct. 11 to their lowest ebb at 14 percent on Nov. 12. "We can only survive if our hotels are at least 40 percent occupied. With less than 20 percent occupancy rates, we are not certain whether we can pay electricity bills or our employees' wages," he said.
Bali has hundreds of star and non star-rated hotels with thousands of employees serving the tourism industry.
Tourist arrivals in Bali through Ngurah Rai Airport in Kuta have drastically fallen from an average of 5,219 per day before Oct.12 to only 500 on Nov. 12.
The drastic drop in the number of visitors to Bali has been exacerbated by the issuance of travel advisories by a number of countries, such as the United States, Australia and some European nations.
In addition to the travel advisories, some international airlines are also refusing to transport export cargo from Indonesia to overseas destinations.
"Australia's Qantas, for instance, has refused to take cargo from Indonesia for security reasons, while other airlines have imposed higher cargo charges to the United States," Kuhn said, adding that this would affect Bali's exports.
Bali exports garments, handicrafts, furniture, tropical fish, marine products and agricultural products such as coffee, vanilla and chocolate.
"Given such a gloomy situation, it is no wonder that now the Balinese people are seeking to return to agriculture, which is crisis-resistant," Kuhn said.
Formerly famous for its extensive rice fields and its elaborate Subak traditional irrigation system, Bali has to face the bleak reality that it has frequently sacrificed its rich agricultural resources to make way for various types of tourist- related industry.
Thousands of hectares of fertile land and rice fields have been transformed into glittering shopping centers, five-star hotels and other symbols of luxury
I.A. Agung Mas, a lecturer in Udayana University in Denpasar, has frequently called on the Balinese people and the island's government to redesign and reshape its development programs, which he deemed to be placing too much stress on the tourism sector.
"The Balinese people are addicted to tourism. It is very difficult for these people and officials to separate their lives from tourist-related activities. Tourism has become flesh and blood for many of us," she asserted.
Like it or not, she said, 80 percent of the approximately three million inhabitants of Bali live in rural areas and work as farmers. The Kuta bombing could provide a fresh start for Bali and allow it to change its development paradigm.
"Tourism should be viewed as one development resource. There are several other profitable and secure pillars, including agriculture, the maritime potential and small-scale industries," said I Dewa Ngurah Supartha, an expert in agribusiness, as quoted by local magazine Sarad.
He further said that during the severe economic crisis between l997 and l998, coffee farmers in several areas of Bali, such as Buleleng regency, North Bali and Plaga village in Badung regency, had enjoyed bountiful harvests.
"Agriculture is not merely about planting rice. We have to really develop a modern farming system and sophisticated agroindustries if we want to profit from this sector," the lecturer said.
So far, he added, there had been discriminatory treatment handed out by the local government against those working in the agricultural sector. "No incentives were provided for farmers, which led to disappointment," he said.
I Made Putu Yadnya, chairman of the Badung Chamber of Commerce and Industry, agreed, saying Bali could transform its simple- traditional farming into well-planned agroindustries. "Thailand and the Philippines have already done this over the last few decades. And they have been very successful," commented Yadnya.
He admitted that it would be quite difficult to change the system abruptly.
"At the very least, we have to start creating a master plan for agricultural development, including strict law enforcement regarding the land use system, which is frequently abused by investors," Yadnya said.
It would be better if there were to be close links between the agriculture and tourism industries. "We could develop agro- tourism or grow the various fruits, vegetables and other crops needed by hotels and restaurants in order to narrow the gap between agriculture and the tourism industry," he said.
The problem remained that the Balinese people were still reluctant to leave the glamorous and dollar-based tourism industry and start getting their hands dirty tilling the rice fields.