Bali's tourism faces gloomy future

Bali's tourism faces gloomy future

Dadan Wijaksana, The Jakarta Post, Jakarta

Hard hit by the recent horrific bomb strikes, Bali's tourism
industry is expected to experience a sharp fall in earnings over
the next two months, an official from the Ministry of Tourism and
Culture has said.

"The losses will be enormous because usually tourist arrivals
reach their peak in the fourth quarter," Udin told a press
briefing held jointly with industry players on Tuesday.

He added that tourist arrivals in the fourth quarter usually
accounted for 30 percent of annual total arrivals, which reached
about five million for the whole country and some 1.5 million for
Bali.

According to the ministry, tourists' length of stay in
Indonesia averaged 10 days while their average daily expenditure
was close to US$100.

"So, based on the figures, you can roughly calculate yourself
Bali's potential loss in revenue over the next two months or so,"
he added.

Last year, according to government data, Bali -- with around
1,400 hotels and almost 750 restaurants -- generated some $1.4
billion in foreign exchange earnings from the tourism sector, or
more than 25 percent of the national foreign exchange earnings
from the sector, which stood at $5.4 billion.

The bomb attacks that leveled two bars in the country's most
popular resort island last weekend -- and left close to 200
people dead -- shattered the island's long-standing image as a
safe haven for holidaymakers from all over the world.

Until the bomb attacks, while visitors avoided many parts of
Indonesia because of various security concerns, Bali remained a
favorite destination for holidaymakers worldwide. However, the
bombs have definitely turned things on their head.

The devastating blasts came at a time when Bali was beginning
to recover from the impact of the Sept. 11 attacks on the United
States. Hotel bookings in Bali dropped more than 50 percent
following the attacks.

Although there have been no exact figures as yet on the number
of canceled fights to the island, the immediate impact is already
apparent in the main tourist areas of the islands.

Taxis are queuing idle, restaurants are half empty and hotels
-- already suffering from en masse booking cancellations -- are
offering major discounts.

Government data says that international arrivals averaged
4,650 per day in the two-week period before the Oct. 12 attack.
On Oct. 14, international arrivals rose to 5,219, probably thanks
to the arrival of police officers, journalists and medical
personnel from many countries. On Oct. 15, arrivals dropped
sharply to 2,833.

George Benney, chairman of the Jakarta International Hotel
Association (JIHA) and a member of the Indonesia-Australia
Council, also painted a gloomy outlook for the tourism industry
following the blasts.

"It's too early to estimate the potential losses for Bali's
tourism industry. But here in Jakarta, cancellations of hotel
orders have already been taking place, from Malaysia, Australia
and other countries.

"I've also heard that many foreigners in Jakarta are planning
to leave the country," Benney said, adding that all hotel
associations would hold a meeting to assess the problem today.

Tourism expert Nobert Willem Van Coenen painted an even
bleaker picture of Bali's tourism prospects, saying the impact of
the bombings was so damaging that even five years would not be
enough time for the island's tourism sector to fully recover.

"Since the island has been known as the country's center of
tourism, the tragedy will make the international community think
a thousand times before coming to visit Bali, or other holiday
destinations in Indonesia," Van Coenen was quoted as saying by
Antara in the Central Sulawesi capital of Palu on Tuesday.

He recalled that Cyprus needed 20 years to recover from the
impact of a terrorist attack.

The Cypriot tourism industry was badly hurt in 1974 when a
bombing occurred that killed many tourists. And the industry did
not manage to fully recover until after 1994," he said.