Repercussions of bombings still being felt

I Wayan Juniartha, The Jakarta Post, Denpasar, Bali

Ni Nyoman Lala's workdays have steadily grown duller, quieter and, economically, less rewarding ever since the terrorist bombs ripped through Bali's prime tourist resort of Kuta.

The explosions not only claimed 202 lives, but also threw the island's tourist industry into a dark abyss and, thus, virtually crushed Lala's dreams for a better future, and those of countless others working in tourism.

"We only had one visitor yesterday. Can you imagine that? Just one mere visitor in one day," she stated in disbelief.

Born in a small village in Tianyar -- one of the poorest areas on the eastern tip of Bali -- Lala moved to Denpasar in search of a better life. Eventually, she landed a job as a shopkeeper at the Legian Art Market, Kuta, where tourists could bargain for souvenirs, ranging from fake brands of polo shirts to bronze Buddha statues.

"But since the bombs, everything has gotten worse. The market is so quiet that I spend my days mostly just sitting and chatting. No visitors means no sales and no revenue, so I can understand why my boss has cut my salary," she said while attentively scanning the street for foreigner tourists.

When four male foreigners appeared, Lala sprung out of her red plastic chair and started beckoning them to visit the shop in broken but comprehensible English. Soon, the other shopkeepers did the same.

The shopkeepers eagerly surrounded them and tried out various ploys to make a sale; from calling the visitors "handsome" to loudly declaring that it was "the cheapest sarong in the market".

Disappointment was written all over their face when the "handsome" tourists left the market without buying a "cheapest sarong". And, once again the market slipped into that uneasy silence.

"If things keep going like this for another three months, it is likely that my boss will have to close the store," Lala said.

Lala and her boss would not be the only ones facing the threat of bankruptcy and unemployment.

Tourism currently absorbs 38 percent, or more than 600,000 people, of the island's total workforce. Moreover, 60 percent of the island's more than Rp 19 trillion in gross regional domestic product usually comes from this industry.

"That's why, in the first days following the explosions, our first priority was to make sure there would be no mass layoffs," head of the Bali Hotels and Restaurants Association (PHRI) I Gde Wiratha said.

From an economic perspective, it certainly was a near to impossible task, particularly since hotel occupancy rates plunged to single digits from the previous 60 percent to 70 percent.

In November 2002, a month after the explosions, the industry recorded a record-breaking 55.25 percent decrease in the number of foreign visitors. Only 86,900 foreigners visited the island during that period compared to 156,900 the previous September and 78,400 in November 2001.

The industry took various measures to avoid laying off workers. To date, no single layoff has been officially reported, although word on the streets says otherwise.

"Tourism is the backbone of the island's economy. When the industry suffers a powerful blow, the impact is not limited to the industry and industry workers alone, but reverberates across all sectors in every corner of the island," a tourism economic expert, Nyoman Erawan, said.

The government and the private sector have been working very hard to stabilize the industry. Numerous delegations of high- ranking officials and industry representatives have visited various countries, such as Australia and Japan, to provide an update on conditions on the island and conducted promotional road shows.

Meanwhile, various high-profile events -- concerts, festivals and seminars -- have been staged to send the all-important message that Bali is still a safe and secure destination. The local police have committed at least 5,000 officers to boost security at various public facilities like harbors, malls and the airport.

Moreover, in an effort to ease concerns about airport security, the Ngurah Rai International Airport Authority will move the public street near the airport some 100 meters to the north.

"The close proximity of the airport and a public street, and the inadequacies of the surrounding fence, in terms of height and material, are two main security concerns repeatedly brought up by people in the tourist industry. In 2003, we will address those concerns, the street will be moved to a safer distance, and the fence will be fully reinforced," the authority's chief, IGM Dhordy, said.

An airport security committee has been set up, plus the airport already meets all requirements on safety procedures, equipment and personnel, dictated by the International Civil Aviation Organization, Dhordy stated.

"I believe the industry will return to normal in six months," the head of the Bali Tourism Authority, I Gde Pitana, said.

And, indeed, by December foreign visitors started trickling in. By January 2003 the number of foreign arrivals had reached 67 percent of the month's normal level, and hotel occupancy rates had moved up into the 30 percent to 40 percent bracket.

"Australians returning to Bali is not solely for a holiday or leisure, but mainly because they want to show their love and concern for this island. Bali was a victim of terrorism, and we want to help and show our solidarity to the people of Bali," Australian Member of Parliament Bruce Baird said in February.

Yet, when things were seemingly getting better, a new threat arose: the possibility of war in Iraq.

Erawan predicted that the war would not only inflict US$224 million in lost revenue on the industry in 2003, but would also adversely affect the industry's recovery.

"Two of Bali's biggest tourism markets, Australia and Japan, happen to be staunch supporters of any U.S. military action. Once war breaks out, their citizens probably will not dare to travel abroad for fear of retaliation from enemies of the U.S.," he said.

Should war take place, the government must try to save Bali's tourism by providing long-term soft-loans that would enable businesses to sustain operation without having to lay off workers, Gde Wiratha suggested.

"I don't know what we should do if war eventuates, I'm without words," Pitana said in exasperation.

Nyoman Lala was also lost for words. She neither knew nor cared about the rationale of war on Iraq. But she understood perfectly that she had better start looking for another job.