Fri, 17 Dec 1999

Millennium bug scares away foreign tourists

JAKARTA (JP): Numerous foreigners have canceled trips to Bali, Indonesia's most popular tourist destination, due to fears over the millennium bug, an executive with the Indonesian Hotel and Restaurant Association (PHRI) said here on Thursday.

PHRI deputy chairman Feisol Hashim said about 30 percent of hotel reservations for year-end holidays in the resort island had been canceled.

He attributed the cancellations to Indonesia's inadequate preparations for possible impacts of the Year 2000 computer bug.

"Most of the tourists who canceled their bookings are from Japan, and some are from European countries and the United States.

"With the relatively large number of cancellations, hoteliers in Bali will have to face the fact that occupancy rates will not be as terrific as they predicted. They will see something below 50 percent (occupancy rates) on average," he said.

He said several countries, including Japan and the U.S., had recommended their citizens not travel to countries that had no assurance of Y2K compliance.

Y2K refers to problems computerized systems may face at the turn of the century if they fail to distinguish between the year 1900 and 2000.

The glitch could cause computers to shut down or malfunction. Power supplies may falter, telephones and transportation systems may stop operating and automated banking transactions may fail.

As a precaution, Japan Airlines has rescheduled all of its flights to avoid flying when the year changes.

Taiwan-based EVA Air said it would suspend its connecting flights between Denpasar and Surabaya on New Year's Eve due to concerns over the Y2K preparedness of the airports in the two cities.

Feisol said tourists doubted the Y2K compliance of Indonesia's tourism-related sectors, including aviation, banking, reservations, electricity and telecommunications.

Director general of tourism I Gde Ardika denied suggestions Indonesia was not prepared for the Y2K bug.

"We are ready for it. All critical sectors, including telecommunications, transportation and aviation, banking, electricity, have completed their Y2K preparations," he said.

"Tourists should not doubt our efforts in anticipating and preparing all our facilities and systems," he said.

Hotels and related sectors in Bali earlier estimated a sharp increase in the number of foreign tourists to the island at the turn of the millennium.

"The reality is different. Even bookings from Bali's major market, Australia, are low," he told journalists on the sidelines of a seminar on tourism.

Unlike foreign tourists, local tourists are eager to celebrate the New Year on the resort island, he said, adding that it was hoped the sharp increase in the number of domestic travelers would offset the drop in foreign tourists.

He said hotels in Bali received more visitors in December last year than the same month this year, even though 1998 was considered by hoteliers to be filled with more uncertainty than 1999. The average occupancy rate in December 1998 was over 60 percent.

Bali saw around 106,775 foreign visitors in December last year. Total tourist arrivals to the island reached 1.18 million in 1998.

Indonesia expects 404,530 foreign visitors in December this year and about 4.8 million foreign tourists for the entire year. (cst)