Thu, 16 Oct 2003

Recommendations for Bali Tourism Recovery

Government Initiatives
* Government agencies, with possible support from UNDP/World Bank, should consolidate the collection and management of data and information relating to tourism in Bali in order to provide a better foundation for policy making. * Government and donors should support the implementation of action plans. Canceling the US$35 fee for a tourist visa upon arrival is a key point for consideration. * Provincial governments in Bali, West Nusa Tenggara and other destinations from broad multi-stakeholder tourism recovery groups (government, police, industry, community representatives) for implementing a comprehensive tourism recovery strategy that effectively coordinates between the National Recovery working groups and provincial actors. These groups should produce strategy documents with clear timeliness, milestones and resources for implementation. Donors could support with appropriate technical assistance. * Government intensifies international promotion campaigns and information dissemination at an appropriate time in key markets as part of the overall tourism recovery strategy. Government should review the strategy proposed by Gavin Anderson & Co as part of this overall effort. * Government, with possible donor support, ensures new security measures (e.g WTO airport security review) are implemented and enhanced security systems are strengthened and verified to international standards. * Government reviews the needs and options for fiscal measures to support the tourism industry in crisis. Donors could support the government with technical assistance in determining options for fiscal policy responses. * UNDP and other donors could support the Ministry of Tourism and Culture in the formulation of national and regional tourism plans, including Bali. * Government must review the management of tourism, spatial planning and environmental management in Bali in the context of Law 22/1999.

Donors

The international community responded rapidly to the Bali crisis. Responses included the restructuring of existing programs to address the crisis, as well as the commitment of new resources.

The main donor initiatives addressing socio-economic recovery in Bali include: * AusAID-Bali Recovery Program (A$488,000 in direct grants). * International Finance Corporation-East Indonesia Business Facility (US$20 million for four provinces including Bali, Lombok (West Nusa Tenggara) and East Java for the period of five years). * USAID-Office for Conflict Prevention and Response (in excess of US$5 million). * UNDP-Community Recovery Program (US$300,000). * World Bank-District (Kecamatan) Development Project (US$28 million over three years).

With the exception of USAID, these donor responses have yet to disburse significant funds, and have yet to make an impact the current socio-economic conditions. These initiatives have mostly undertaking initial preparatory work, while some have experienced administrative delays. It is anticipated that these programs will be fully operational and disbursing funds in the first half of 2003. ----------------------------------------------------------------