Bali's tourist industry focuses on new markets

Bali's tourist industry focuses on new markets

Rita A. Widiadana, I Wayan Juniartha, The Jakarta Post, Denpasar

After the global economic slowdown in 2001, Bali's tourist
industry has begun to pick up again and is now hosting a number
of national and international conferences.

Starting May 27 through to June 7, Bali is hosting a major
United-Nations sponsored meeting called the Preparatory Committee
(Prep-Com) IV for the World Summit on Sustainable Development,
which involves no less than 6,000 participants from across the
world, an effective promotion in itself for this tourist island.

Bali's deputy governor Alit Putra was happy. "Bali is likely
to benefit from such an event," he said, during a recent press
briefing here.

The participants are staying at hotels in Nusa Dua, Jimbaran
and Kuta. Even in Nusa Dua, all hotels are fully booked. Hotel
management and their employees are gearing up to welcome
important guests.

Levi Martin, public relations manager of the Bali
International Convention Center and Sheraton Nusa Indah, said
that convention business had enlivened Bali's tourism sector.

"You can imagine, in only one event, we can involve so many
employees, catering services, travel agencies, rental car
companies. This means that our economy is starting to run well,"
he said.

Deddy Sasmita, public relations manager of Discovery Kartika
Plaza in Kuta, agreed that convention activities including
national, regional and international meetings have contributed a
lot to the survival of Bali's tourist industry. "Bali is a
beautiful and safe place for conventions," he said. The hotel
hosted the Bali International Fashion Week, an Asian meeting on
forestry and other events.

Since the Sept. 11 terrorist attacks on the World Trade Center
in New York last year, the global tourist industry suffered huge
losses. Airline companies, hotels, restaurants, and related
industries were waiting in anguish for foreign visitors brave
enough to travel by air.

Five star hotels in Nusa Dua, exclusive villas in Ubud, luxury
hotels and cafes in Kuta were all quiet. Some hotels had even
closed down part of their facilities in order to cut operational
costs. The occupancy rates of the majority of star hotels were
between 20 percent and 40 percent during that slow period.

Travel agencies suffered and received series of cancellations
from their clients.

Bali, which relies economically on tourism, suffered badly.
American and European travelers who always spend their holidays
in Bali disappeared. Japanese tourists were hardly seen in Kuta.

I Gede Pitana, head of Bali's tourist agency, was startled and
confused but was quick to take action.

"We have to find alternative markets to replace the loss we
suffered from the drastic decline of American and European
tourist arrivals. China and Asian markets are the most feasible
alternatives," he added.

The United States, Canada, Britain, Germany, Italy, Australia,
Japan have been the traditional tourist markets for Bali. But
Asia Pacific countries actually contributed up to 70 percent of
the total amount of direct foreign tourist arrivals in Bali.
Around 350,000 Japanese tourists arrive each year, while
Australia is second with 250,000 annual visitors.

The Sept. 11 tragedy inflicted a heavy toll on Bali's tourist
industry with the overall number of direct foreign tourist
arrivals decreasing by 4.9 percent in September 2001, as compared
to the same month in 2000. In October, it decreased by 25
percent, and the worst took place in December when it decreased
by 33 percent.

The U.S. market recorded the sharpest decline, with an average
decrease of 70 percent during those months. Meanwhile, the
Japanese market was down by 14 percent," he said.

In total, the number of direct foreign tourist arrivals in
Bali during 2001 was down by 4.7 percent to 1,355,282 tourists
compared to 1,412,839 a year before.

In 2002, it is expected that Bali could receive between 2.7
and 3 million visitors.

The government of Bali, along with officials from tourist-
related industries, have taken several steps to tap new markets
including China, Taiwan, South Korea, Singapore and India.

"We have already received a positive response from those
markets. In March 2002, China's foreign minister and the Chinese
National Travel Authority (CNTA) officially announced Indonesia
as a tourism destination for Chinese travelers."

He projected that Bali in 2002 would be able to attract up to
200,000 visitors from China, which was a steep increase from
1,767 recorded in 2001.

Chairman of the Association of Indonesian Travel Agents
(ASITA) in Bali, IGB Yudara, stated his readiness to accept
visitors from China. Thirteen travel agents out of 300 have
passed all the government-issued mandatory requirements to handle
Chinese travelers. Currently, there are only 65 travel agents in
Indonesia that are qualified to handle Chinese travelers. One of
the mandatory requirements is that each travel agent must have at
least five Mandarin-speaking tour guides.

India is another potential market. Last April, a top
delegation from Bali, including Governor Dewa Beratha, attended
the 51st PATA conference in New Delhi.

"India and Bali possess similar religious and cultural
backgrounds. We have sought the possibility to tighten the
relationship with the Indian government in tourism, culture and
education."

In addition to these new markets, Bali is also focusing on
domestic travelers, especially during school holidays, Christmas
and New Year.

The year 2002 could become an optimistic period for the
island. The present Prep-Com IV meeting is a test case for Bali.
If it is successful, other international bodies may also consider
Bali a potential meeting place.