Indonesian Political, Business & Finance News

Jakarta's dive centers survive economic crisis

| Source: JP

Jakarta's dive centers survive economic crisis

JAKARTA (JP): Dive centers in Jakarta have survived the worst
times in recent Indonesian history, and some have even discovered
that the situation here can be an advantage for their business.

When the rupiah started depreciating against the dollar in
1997, diving became a relatively cheap sport for many
expatriates, compared to what they would have to pay in other
countries. Many took advantage of this opportunity and pursued
the sport, leading to a small boom in the business among the
expatriate community.

"When we started this center, our business was aimed at the
locals," said Indah Waty, a dive instructor at Aquapro. "When the
economic crisis hit, we quickly shifted our target to the
expatriates, and since then business has been good."

Expatriates now make up 90 percent of Aquapro's clientele.
Most of the other dive centers also now cater mainly to
expatriates.

A big contribution to the boom came from the way the centers
coped at the onset of the economic crisis. Some centers began
charging in rupiah for their courses at a time when the norm was
to charge in U.S. dollars. Bubbles Divers, which was only one
week old when the rupiah plummeted to Rp 12,000 against the
dollar, was the first to do so.

Competition arising from his move quickly pushed the prices of
other centers down, making diving suddenly much more affordable
for expatriates.

Jenny Antonius, the owner of Sea Dragon, which caters mainly
to the Japanese market, points out another factor behind this
reported growth: "A lot of expatriate men who have sent their
families back suddenly find themselves alone in Jakarta. They
want something to do over the weekends and diving is a popular
choice." As a result, her company is still making up to two dive
trips every week.

Some centers report either a slight or no decline in the
number of trips, suggesting that even though there are less
divers now that many expatriates have left Indonesia, those who
dive are diving more.

What's more, diving seems to allow Jakartans to escape from
the stress brought on by the recent developments in the country.

"During the election campaign, some of my clients were so fed
up with the rowdy activities here that they asked me to take them
away to some island to escape," said Jono Sugiyanto, a director
at Laut Dive Indo.

But others who have been in the business longer are less
enthusiastic. "Business had been good for us until the economic
crisis," said Nunung Hasan, business manager and an instructor
for Dive Indonesia, one of the longest established dive centers
in Jakarta. Her business picked up again a few months ago when
the rupiah settled at Rp 8,000 against the dollar.

Most centers say the number of local divers has dropped
drastically. instructor Daniel A. Carnadie, a co-owner of Bubbles
Divers, said he had lost clients because they have lost their
jobs.

Moreover, that timeless attraction of taking up an expensive
sport during tough times may have contributed to more locals
diving. "Most of the locals from Jakarta who dive do so because
they are drawn to the prestige associated with the sport," said
Indah.

Whether it is a matter of wealth or prestige, it is not
unusual to see a local diver decked from head to toe in every
diving accessory available on the market. Which is precisely why
Nunung prefers local clients. "The locals are willing to invest
in the equipment, whereas foreigners prefer to rent them," she
said. Unfortunately, as fewer locals visited her shop, revenue
from diving equipment was drastically reduced.

Like many other dive centers, she began to cut down on stock,
carrying only the basic items or the latest designs. According to
Jenny, however, since last month's further strengthening of the
rupiah, more people have made purchases at her shop.

Indonesians started taking up diving around 1990. By 1994,
diving had become a popular sport. Its popularity continued to
rise until the nation's economic and political turmoil disrupted
the trend.

But according to Klub Corona, an organization aimed at
promoting diving in Indonesia, the sport is as popular as ever
among locals.

"Those who dive belong to a segment of society that isn't much
affected by the krismon (monetary crisis)," says Wilhan Thendian,
an events coordinator for the club, which offers courses in the
Indonesian diving certification, POSSI, and organizes dive trips
for members.

On the whole, those in the business are optimistic that diving
will become even more popular in the future.

"During the spate of demonstrations recently, there were times
when we wanted to close for the day," Nunung said of her two
shops. "But we continued to receive enquiries, which showed that
even under the worst conditions, people were still interested in
diving." That, she believes, is a sign that diving will become
even more popular in the future. (Sadie Mah)

View JSON | Print