Repercussions of bombings still being felt

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.