The word is out, Bali is back as world class tourist mecca
The word is out, Bali is back as world class tourist mecca
By Rob Goodfellow
WOLLONGONG, Australia (JP): After three years of uncertainty
following the Asian economic meltdown, the Indonesian general
election and the East Timor crisis, Bali is back in vogue as a
world class tourist destination.
Enquiries by Australian-based IRIS Research have verified the
trend. In an interview this week, IRIS Director Martin
O'Shannessy, confirmed a 30 percent increase in Australian
tourists bound for Bali, with the trend suggesting continued
strong growth.
O'Shannessy said that there was an observable decline in
departures from Australia to Indonesia between 1998 and early
2000. "The seasonal lift in departures normally expected after
February did not take place during 1999 and this was followed by
lower than usual monthly departures for about nine months. The
data is now suggesting that a steep lift in departures took place
in the first part of this year".
But what exactly is behind this reversal of fortunes? Experts
can't agree on whether holidaymakers are being lured back by the
island's tropical charms or driven to holiday in Bali by the
upheaval in Fiji.
What is known, however, is that the political crisis in the
South Pacific has seen tourist numbers fall in that region from
over 4,200 to below 400 per day since the May 19 Fiji coup. This
has resulted in lost revenue estimated at around US$150 million
and hospitality industry redundancies put at 20,000 jobs. The
much smaller Solomon Islands tourism sector completely
disintegrated last month when ethnic warfare erupted in the
capital Honiara.
"The crisis in the Pacific has been an amazing catalyst for
driving Australian tourists back to Bali," said Kristal Taylor,
the national advertising manager for Australia's largest travel
retailer, The Fight Center.
"The main reason for this is that our consultants are
confident of recommending Bali as a safe and economical holiday
destination," she said.
"Having traveled to Bali myself last month I am personally
very confident of recommending the island."
Martin O'Shannessy similarly suggested that anecdotal data
from the travel industry pointed to a switch between Fiji and
other Asia-Pacific destinations from May onwards and that this
would boost the trend observed in the first quarter of 2000.
"In my opinion, Bali, which receives the vast bulk of
Australian departures to Indonesia, appears to have maintained
its reputation for friendliness, safety and good value," he said.
Rolf Hubner, general manager and director of operations for
Bass Hotels and Resorts Indonesia, confirmed that the last three
months had seen a steady increase in business.
Speaking from the Bali Intercontinental Resort on Jimbaran
Beach, Hubner said, "I wouldn't credit increased interest in Bali
exclusively as the result of problems in the South Pacific.
"The hard work of all those in the industry who have
accurately portrayed Bali as a place worth visiting has more to
do with it, combined with the excellent leisure and recreation
value the island continues to offer," he added.
"Increased activity from all sectors indicates to me that
visitors are choosing Bali as a strong preference rather than
having to settle for a second best alternative.
"American and European visitors are able to make a distinction
between Bali, and the rest of the Asia/Oceania, which, I must
concede, has been hit particularly hard by the hostage situation
in Malaysia and the Philippines and the political instability in
the South Pacific".
Fallout
Normally, the market for the Bali Intercontinental is reported
as a mix of 30 percent Japanese, 25 percent from other parts of
Asia (including 8 percent Indonesian nationals), 20 percent
Europeans, 15 percent Australians, and 10 percent Americans.
"The only 'fallout' we have had from Fiji were two inquiries
for international conferences organized out of Australia,"
Hubner added.
In support of these comments, Kerry Timms, regional
spokesperson for Garuda International, confirmed the IRIS figures
indicating there had been a significant quarterly increase in
Australian tourists using the Indonesian national airline to
Bali.
Timms reported a 23 percent increase in direct international
flight services to Denpasar, a strong indication that confidence
was returning.
Like Rolf Hubner, Kerry Timms played down the "Fiji factor"
suggesting, "Bali enjoys a great deal of repeat business. Many
hundreds of thousands of international visitors go back to Bali
year after year. The best customer is the one you already have.
"Our positive public relations, better in-flight service and
our highly competitive fares are mostly responsible for the turn
around. There have also been some early exciting results from the
work of our Luftanza consultants. This is already generating
encouraging 'word of mouth' praise from Garuda travelers".
This was backed up by Kristal Taylor who suggested, "We have
been working closely with Garuda International and with our
internal wholesaler, Infinity Holidays, to accommodate any Fiji
cancellations or to meet this new demand."
"We are delighted with the positive feedback we are getting
from our recent Bali clients," Taylor added.
Stability
Clearly there are some difficulties ahead for Bali.
International tourism is influenced by a number of factors
although, according to research undertaken by O'Shannessy at
IRIS, concerns about political stability remain the consumers'
most important determining factor in choosing where to take an
international holiday.
Another important factor, however, is the reality that Asia is
in competition with other holiday destinations. The strong Yen,
for instance, has increased Japanese tourist numbers to the U.S.
and Europe. On the other hand, U.S. visitors are flooding Europe
thanks to the buying power of the Greenback against the Euro.
Consequently the Europeans are holidaying where their currency
has the greatest buying power - the southern Mediterranean and
the Caribbean.
Indications from the Bali Intercontinental Resort are that
Europeans are beginning to rediscover that Bali offers even
better exchange-rate value. As IRIS suggests, this is something
Australians also appreciate as their currency continues to hold
up very well against the Indonesian rupiah.
No matter what is driving the demand, the word is out that
after two years of declining tourist numbers, Bali is back.
The writer is based at the University of Wollongong and is an
Indonesian cultural consultant to international businesses. He
can be contacted at sujoko@ozemail.com.au