Occupancy rates plunge to only 11 percent in Bali

Occupancy rates plunge to only 11 percent in Bali

A'an Suryana and Dadan Wijaksana, The Jakarta Post, Denpasar/Jakarta

Bali does not seem to be much of a holiday destination these
days. With taxis standing idle, restaurants seen half empty and
hotels offering sharply-discounted rates, one would find it hard
to believe that this is the same island that only less than two
weeks ago used to be a favorite among travelers around the world.

The bombings have really changed everything.

Few foreign tourists were spotted in the lobby of the Grand
Mirage hotel on Thursday, likewise at the Grand Hyatt Hotel Bali
and Sheraton Lagoon.

In fact, most hotels on the island are facing hardships less
than two weeks after the incident, considered the world's
deadliest terrorist attack since the Sept. 11 terrorist attacks
on the United States.

Massive cancellations of hotel room bookings have brought down
Bali hotels' occupancy rates to a record-low of 11 percent on
average.

"The occupancy rates are going down very quickly. One week
after the incident, we heard the average was still hovering above
20 percent. But, the latest data shows that the average has now
reached around 11 percent," Yanti Sukamdani, chairperson of the
country's hotel and restaurant association, said on Thursday in
Jakarta.

She was speaking after a talk show on tourism following the
Bali bombs attacks, which claimed more than 190 lives and injured
hundreds of others, mostly foreigners.

Prior to the bomb blasts, Bali's hotel occupancy rates
averaged more than 70 percent.

"This is bad, because hotels' break-even point usually stands
at an occupancy rate of 40 percent," Yanti added.

Five-star hotels such as Grand Hyatt Bali and Sheraton Lagoon
in Nusa Dua are said to have experienced historic lows in
occupancy rates due to the mass cancellations of bookings by
travelers for fears over security.

The deadly strikes have tainted the image of the resort island
as a safe haven and prime destination for holidaymakers.

In the wake of the attack, most countries whose citizens had
been among the victims warned their citizens against traveling to
the island, and even Indonesia.

So far, 24 countries have confirmed the deaths of their
citizens because of the attacks.

To date, hotels on the island have registered more than 3,000
cancellations, both by individuals and groups, and the figure is
feared to be rapidly increasing, Yanti added.

Echoing Yanti, Meity Robot, the director of the Association of
Indonesian Travel and Tour Agencies, said the impact of the
blasts were so damaging that up to 90 percent of the planned
international conferences in Bali had been canceled.

"The impact will be enormous. I'm not just talking about those
directly involved in the sector, such as hotels, travel agents
and restaurants.

"But also those who are involved indirectly such as beach
masseurs or the people who braid tourists' hair, or others. There
are so many people like them in Bali," Meity, also present at the
talk show, said.

Some 80 percent of the province's income is derived from
tourism, which directly absorbs around 40 percent of the
population. The island lures around 1.5 million foreign tourists
annually.

Last year, the tourist industry in Bali, with around 1,400
hotels and almost 750 restaurants, generated some US$1.4 billion
or more than 25 percent of the nation's foreign exchange revenue
from the industry, which totaled $5.4 billion.