Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Putting the Brakes on Tourism Investment
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Putting the Brakes on Tourism Investment

Jakarta Post: Experts Warn Against Prioritizing Tourism Sector.


(10/14/2011)

The following article by Andrea Wisnu, the Bali correspondent for The Jakarta Post appeared in the Wednesday, January 28, 2009 edition of that newspaper:
Experts warned the administration Tuesday to stop allocating money to tourism -related infrastructure projects.
They cited the sector's inability to promote long-term economic growth and its "cannibalization" of other important sectors.
In a seminar on tourism and agriculture at the Art Center in Denpasar, experts told the Bali government to begin pushing programs that would promote growth in the island's other sectors.
"For the past 20 years, people have been trying to find a breakthrough in the tourism sector that could propel our annual economic growth back to pre-1997 levels," Dr. Nyoman Erawan, a professor of economics from Udayana University, said.

Bali Map from Nasa
[Click to Enlarge]

"Data has shown that the tourism sector cannot be relied upon for economic growth. It's time for the government to move funding to other sectors."
He added that a reliance on the tourism sector had caused the island's economic growth to drop significantly over the past four decades.
He said that in the 1970s, when the government intensified development, the tourism sector helped propel the island's economic growth rate to an average of 9.07 percent per year.
But by the 1980s, that growth rate decreased to 8.41 percent and decreased further in the 1990s to 7.99 percent. The Bali bombings, the SARS scare and the bird flu scare caused that number to drop further to 4.26 percent in 2006.
While many still look forward to a revitalization of the tourism industry, Erawan said the island could not afford to keep on hoping, citing the tourism sector's dangerous "cannibalization" of other economic sectors.
He said the tourism sector, which required additional infrastructure development, was limiting the expansion of other economic sectors.
"Take agriculture - the rapid development of roads and buildings are taking away space required for farmland and irrigation at a rate of nearly 1,000 hectares per year," he said.
He further cited the agriculture sector as a more sustainable tool for economic growth, saying that the rate at which a farmer's income fluctuated was relatively more stable than that of those working in the tourism sector.
He said that a farmer's real income grew at a rate of 4.83 percent in the 1970-1980 period. Though stunted by market marginalization, which preferred tourism, to 2.98 percent in the 1980s and a further 2.35 percent in the 1990s, the agriculture sector did record of real income growth per capita of 3.92 percent in the 2000-2006 period.
In comparison, real wages in the services sector including tourism continued to fall. During the Bali tourism heyday of the 1980s, real income growth per capita in the services sector showed a spike of 8.93 percent from 5.21 percent during the 1970s.
In the 1990s and during the Asian financial crisis, the number dropped to 5.97 percent. From 2000 to 2006, the services sector recorded a freefall with a real income growth per capita of 1.04 percent.
"This proves at least one thing: Our reliance on market mechanisms to support fair and equal development requires a second look," he said.
"This applies not only to the government, but to all stakeholders such as the public and businessmen."
Bagus Sudibya, former head of the Bali Tourism Board who was present at the seminar, admitted that an over-reliance on the tourism sector had caused the government some difficulty in growing the island's economy.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Heinz's 100 Varieties of Indonesian Cuisine
Bookshelf: A New Approach to Indonesian Cooking by Heinz von Holzen
(10/20/2014)
We Get More Mail!
Folly has its Price. Spirited Comments of Disaffection Continue to Flow in About Bali’s Newly Renovated Airport
(10/20/2014)
Who Owns Bali’s Heritage
Legality of Badung Regency Funding of Taman Ayun Questioned by Badung Legislator
(10/19/2014)
The Gods Must be Irritated
French Climber Evacuated From Upper Slopes of Mount Agung
(10/20/2014)
Sauvetage en Mer
Bali Lifesavers Show Their Skills at International Surf Rescue Games in France
(10/19/2014)
Chefs Al Fresco in Sanur Bali
Bali Culinary Professionals to Meet at Swiss-Belresort Watu Jimbar on Saturday, October 25, 2014
(10/19/2014)
World Travel Agents to Meet in Bali
United Federation of Travel Agents to Meet in Bali November 16-19, 2014
(10/19/2014)
Travel May be Ebola’s Biggest Victim
Editorial: In the Unfolding Ebola Epidemic Crisis the Most Deadly Symptom May be Fear
(10/20/2014)
Human Charity – On the House
‘Together as One’ Fun Run Raises More than US$9.000 to Improve Housing for the Poor in Bali
(10/19/2014)
Passing Gas
Denpasar, Bali Mayor Joins Chorus Urging Port of Benoa Not be Used for LNG Depot
(10/19/2014)
Ignoring the Protests
Tirta Wahana Bali International to Go Ahead with Benoa Bay Reclamation Project
(10/19/2014)
Ease of Access
Indonesia Fails to Enforce Rules on Handicapped Access
(10/18/2014)
All [News]!