No tourism beneficiaries of Bali blasts

No tourism beneficiaries of Bali blasts

Helen Ubels, Dow Jones, Sydney

In the immediate aftermath of the Bali bombings, it seemed as
though other Southeast Asian destinations would be the
beneficiaries of redirected tourist traffic, but three weeks on,
the picture is very different.

The tragedy has created a climate of fear across the region,
hurting airlines, hotel operators and the broader tourism sector.

Indonesia, Thailand, Malaysia, the Philippines and even
Singapore are finding themselves part of the collateral damage,
as various governments warn their traveling citizens of risks at
specific destinations, but also crowded hotspots in general.

"Those (government) advisories aren't just Australian, they've
been issued in Japan, they've been issued in Europe and North
America...and it is affecting forward bookings even to places
previously thought of as safe havens, like Phuket, in Thailand,"
said Ian Thomas, a senior consultant to the Center for Asia
Pacific Aviation.

Though a best-case scenario might have Bali on its feet in six
months, this assumes there are no further attacks, no conflict in
the Middle East, and no backlash inside Indonesia against the
government's measures to find the Bali bombers.

"There is no guarantee of any of that, and if anything the
outlook for greater uncertainty seems more likely than it does
for greater stability," Thomas said.

Peter Hook, a spokesman for the region's largest hotel
operator, Accor Asia Pacific, said that bookings are off
"everywhere" for the hotel industry. "The whole of South East
Asia has been perhaps tarnished with the same brush."

Accor has two hotels on Bali and one on the neighboring island
of Lombok, all of which rely on tourist traffic.

Business in that area has suffered "horrendously," said Hook.

But Accor has been somewhat insulated from the broader
regional fallout because its hotels, which include the Sofitel,
Novotel, Mercure, All Seasons and Ibis chains, aren't as reliant
on leisure travel and international trade.

The hotels "aren't as identified as Western hotels or Western
destinations," he said.

Six Continents PLC, which owns Intercontinental, Holiday Inn,
Holiday Inn Express and Crowne Plaza hotels in Southeast Asia,
said the entire hospitality industry has been hurt by the
bombings. The group declined to comment further on the regional
ramifications, but said it "remains committed to Bali for the
long term."

With many airlines cutting service to Bali, the island will be
pinning its hope on Japanese business.

Japanese travel agencies say tourists are already coming back
and business isn't as bad as feared. The Japan Travel Bureau has
resumed selling package tours.

The main reason for the limited impact is that airlines and
hotels continued to operate normally and gave tourists the
impression that the trouble has been contained, said the
agencies.

While Indonesia's Garuda, Australia's Qantas Airways Ltd.,
Singapore Airlines Ltd. and EVA Airways Corp. have cut flights to
Bali, Japan Airlines System Corp. continues to operate two daily
flights to Denpasar, the island's international gateway.

Despite this resilience, the Japanese travel industry is
nervous about the Middle East.

"What is most worrisome is the situation in Iraq," said a
spokesman for Kinki Nippon Tourist Co..

"If newspaper headlines start saying bombing is imminent,
tourists' reactions will be: 'Our trip can wait,"' he said.

War in Iraq will inflame the situation in Southeast Asia, said
Thomas at the Center for Asia Pacific Aviation.

"If there is conflict in the Middle East, the current
resentment that is held by various parts of extremist Islam will
extend further into Southeast Asia, and logically, there will be
more attacks."

It is fear of a second regional attack that has hurt the Thai
resort island of Phuket.

Immediately after the bombings, tourists destined for Bali
flocked to Phuket instead. But the resort's specific mention in
some government advisories as a potential terrorist target
quickly upset that migration. Cancellations have been most
noticeable from Australia and parts of Europe, such as the U.K.
and Germany, said Sugree Sithivanich, the director of the Tourism
Authority of Thailand in Sydney.

The short haul market has been more resilient. Singaporeans
and Malaysians are still going to Thailand - "they still have
confidence in our country," he said.