Blast sends Bali into economic woe

Blast sends Bali into economic woe

Rita A. Widiadana, The Jakarta Post, Kuta, Bali

Life will never be the same again for many Balinese people
following the tragic bomb explosion on the island's most
glittering nightlife strip along Jl. Legian in Kuta.

Suzy, a woman working in an art shop located just a few meters
from where Paddy's and the Sari Club once stood, complained that
her shop would be closed indefinitely while the investigation was
underway.

"I don't know what to do anymore. I think I'll have to go back
to my hometown of Malang (East Java)," she said.

Djodi, a taxi driver, shared her feelings. "No more guests, no
more rice on the table."

Ni Wayan Tjandri, the owner of a handicrafts shop in Kuta,
said she was encouraged to see some foreign visitors still coming
in and buying one or two items from her shop.

"I hope not everyone leaves Bali. If that happens, it would be
a disaster for our business. At the least, we hope that local
tourists will continue to visit. We really depend on both local
and foreign tourists," she explained.

The bombing, which killed more than 180 people, has scared
away not only foreign tourists but also locals.

Famous beaches like Kuta and Seminyak, which are normally
packed with tourists, are now deserted. So are other tourist
destinations like Tanah Lot in Tabanan and the Bedugul highland
resort.

Nevertheless, despite the horror of the bombing, some Western
and Asian tourists, especially the Japanese, have braved and
defied travel warnings from their governments and continued to
visit Bali.

Some of them are to be seen around the bomb site and other
areas in Bali.

These visitors have helped heal the wounds of the Balinese
people and their economy. This has prompted the chairman of the
Bali chapter of the Indonesian Travel Agents' Association
(ASITA), I Gusti Bagus Yudhara, to especially thank them for
their courage.

"They can share their experiences with their families and
friends in their home countries and explain that Bali is not as
scary as people think," Yudhara explained.

He said the bombing had badly affected the tourism industry.
Therefore, any visits by foreign or local tourists would be very
welcome indeed.

Following the bombing, ASITA surveyed the 10 largest travel
agencies in Bali -- out of some 300 travel agencies operating on
the island.

The survey revealed that all 10 travel agents had suffered
cancellations of up to 50 percent of their bookings.

"You can imagine the impact of these cancellations on Bali's
tourism industry," Yudhara said.

The Bali Tourism Office also revealed a similar gloomy
picture. The office said that the hotel occupancy rate in Bali
had dropped drastically from 70 percent on Oct. 12 (the date of
bombing), to only 38 percent on Oct. 18.

More than 29,000 foreign tourists had left Bali since the Kuta
tragedy, whereas only 11,759 visitors had arrived on the island
since then.

To anticipate the worsening situation, the Bali Tourism
Office, together with private tourism companies, including
airlines, plan to launch special tourism packages for both
domestic and foreign visitors.

Domestic airlines, including national flag carrier Garuda
Indonesia and its subsidiary Merpati Airlines are to offer
special discounts for visitors coming to Bali for the Muslim
holiday of Idul Fitri, Christmas and the New Year.

I Putu Agus Antara, chairman of the Bali Tourism Board,
confirmed that the province's tourist industry would work
extremely hard to promote Bali on both the domestic and overseas
markets.

"But, for the time being it would be wiser to focus first on
the domestic market," he said.

The bombing will not only affect tourism but also other
sectors in Bali, such as real estate.

The deputy chairman of Bali's Real Estate Association, W.
Sutama, predicted that sales of office buildings, shops,
residential homes and villas in Bali would drop significantly.

"Most potential foreign buyers have canceled their purchases
of property here indefinitely ... many of them have left Bali,"
he said.

He was not sure when Bali's economy would return to normal.

Learning from past experience gained from the rioting in Bali
in 1999, it will take more than a year to restore Bali's social
and business life to normal, and for the tourism industry to
recover.

Bali, however, should not feel neglected. After all, the
government and the international community have rapidly come to
the assistance of the beautiful island.

The government has instructed all state companies, as well as
encouraged private companies, to hold their corporate functions
in Bali and send their employees there to help revive the
island's tourist industry.

In addition, the central government has also promised to pour
in around Rp 500 billion (US$54 million) for the reconstruction
of the devastated Jl. Legian area and the provision of supporting
infrastructure.

In addition, the World Bank (WB) has committed itself to
providing US$30 million to help kickstart the province's social
and economic revival.

As assistance starts to pour in, now is the right time for the
Bali administration to prove to the world that it is trustworthy,
capable and responsible in managing the financial assistance it
receives.