New Conrad Hotel a sign of Bali's economic recovery
New Conrad Hotel a sign of Bali's economic recovery
Jenny H. Backstrom, Contributor, Tanjung Benoa, Bali
The planned opening of the Conrad Bali Resort & Spa early next
month suggests a more positive outlook in 2004 for business and
investment in Bali compared to the previous year, with its many
causes of economic difficulties.
Conrad's vice president of marketing, Richard Blamey, said the
resort, to be located in Tanjung Benoa, was the group's 18th
hotel project worldwide and that Bali was chosen because it was
one of the world's premier tourist destinations.
The resort will offer 313 guest rooms and suites with ocean
views and 20 villas with private pools.
High-tech conference facilities, library, restaurants, spa and
gymnasium are other facilities that will be offered.
Bali's economy, which largely depends on the tourist industry,
encountered difficulties in 2003 when terrorist threats, SARS and
the U.S.-led invasion of Iraq lead to travel warnings and
decreased tourist numbers.
"After all that happened you think investors and business
people would think it better to close the door to Bali, but no,"
Conrad Bali's general manager, Michael J. Burchett, said.
"We are starting up slowly with a soft opening on March 8 and
we will still be building our 20 villas. That says a lot about
the confidence we have in the market," he said.
"Our target for 2004 is an hotel occupancy rate of 45
percent." Burchett said that after a busy Christmas and New Year,
the hotel industry in Bali was feeling a lot more confident about
2004 than perhaps even as late as December.
He does not think the new visa requirements, which took effect
on Feb. 1, or the April and July elections will directly affect
the market.
Conrad Hotel, part of the Hilton family of brands, is a joint
venture owned equally by Hilton Hotels and Hilton International.
The group already has a strong presence in Asia with city
center hotels in Hong Kong, Singapore and Bangkok, and with plans
for 2005 to expand its hotel/resort portfolio in Phuket
(Thailand) and Tokyo.
The Bandung-based PT Oriental Indah Bali Hotel is an investor
in the US$60 million project in Bali, which was designed by
architecture firm Wimberly, Allison Tong & Goo of Hawaii.
Construction on Conrad Bali began in November 2001, despite
worries following the Sept. 11 attacks in the U.S. It was nearly
one year into construction when the Bali bombings hit in October
2002.
"At that time the hotel was just a concrete shell and we could
have said, 'Hey, let's close it up', but the owner and we, the
team from Conrad, have felt very positive about the market in
Bali and where it is going," Burchett said.
Out of the 17,500 job applications received, 404 Indonesians
and four foreigners will be hired to work at the hotel, which had
also created job opportunities for about 1,000 construction
workers.
"There are some great people here and there is no need to
bring in a whole lot of foreigners to add and bring a level of
expertise," Burchett said.