BALI UPDATE #297 - 27 May 2002

Bali Arrivals Down

First Quarter Visits Dropped 8.36%.

Data provided by the Bali Tourism Service shows that overall arrivals in Bali for the first quarter of 2002 totaled 296,847 foreign visitors, down 8.36 % from the same period just a year before.

The biggest drop in foreign arrivals to Bali occurred in January, which saw a decrease of 20.8% offsetting the modest improvements recorded for the months of February and March.

Significant Downturn in Australian and Japanese Markets

During the first quarter of 2002, two of Bali's largest inbound markets - Japan and Australia experienced substantial downturns in recorded arrivals, losing 23.35% and 21.64%, respectively.

Higher Airfares The Cause?

Mr. Gede Wiratha, the Chairman of the Bali Chapter of the Indonesian Hotel and Restaurant Association (PHRI), commenting in the Indonesian-language daily Bisnis Indonesia, cited as the casue for the downturn the higher fares, in the wake of Ansett Airlines' collapse, by Garuda Indonesia and QANTAS to Bali.

Wiratha bemoaned that fact Bali fares have been increased ex-Australia while at the same time fares to Thailand have been reduced, rendering Bali less competitive in the Australian travel market. The PHRI Chairman claims it is now less expensive to fly to Bangkok than it is to Denpasar from most Australian cities, despite Bali being substantially closer in terms of distance.

Bali in a Box

Bali TV Formally Commences Programming.

On Sunday, May 26, 2002, Bali TV formally commenced a schedule of regular programs via a ceremony broadcast live from Bali's Taman Budaya. The event, attended by an estimated 8,000 people, saw Bali's Governor Dewa Made Beratha and Regents from across Bali strike a gong and light torches to mark the start of regular broadcast transmissions.

To mark the launch of the new channel, Nasi Jinggo meals were provided free of charge to all who attended the opening ceremony together with a program of Balinese music and light entertainment.

With a proclaimed mission to promote and foster Balinese culture, traditions, and tourism - Bali TV's initial schedule includes programs of Balinese music, dance, and drama. Most programs will utilize Bahasa Indonesia with the exception of a regular news broadcast in the Balinese language.

Technical Data

Bali TV is being broadcast on UHF Channel 23 at 487,250 MHz. Satellite parabola reception to the region should be available via transponder 9H, center frequency 4053.5 MHz, L- Band 1096.5 (Symbol Rate 5.6320 Msps, FEC-3/4).

Broadcasts of Bali TV are also available via the Internet at balitv.com or balitv.tv.

Casino's Out of Luck in Bali

Bali's Tourism Chief Answers Casino Investors.

In a seminar on cultural tourism held at Bali's Dwijendra University on Saturday, May 18, 2002, Bali's Chief of Tourism, Professor Dr. I Gede Pitana, M. Sc. underlined the impossibility of establishing a casino in Bali within the framework of existing laws.

Commenting in response to calls by local and foreign investors to legalize gambling on Nusa Penida Island, Dr. Pitana stated that casino operations in Indonesia are still expressly forbidden under basic law No. 34 making it impossible for local regulations to try to circumvent the prohibition.

Bali's tourism Chief used the occasion to suggest that for Bali to pursue gambling tourism was not only out of step with the island's focus on cultural tourism, but also out of step with competing destinations in the region such as Malaysia's Genting Highlands and the Philippines who have an advanced and well-established gambling infrastructures. Pitana suggested that "instead of chasing (a gambling industry) that is 100 years ahead of us, isn't it better we pursue the natural advantages we enjoy?"

In urging his fellow Balinese to promote cultural tourism, Pitana warned that gambling tourism has the potential to destroy Bali's long range goals to become a world-class cultural destination. (Bali Post 20/5/02)

A Return of the Strong Rupiah?

Rupiah Breaks the Psychological Barrier of Rp. 9,000 to US$ 1.

Positive sentiment towards efforts by the Indonesian Government to strictly implement it economic reform program in combination with a weakening U.S. dollar internationally, saw the Indonesian Rupiah break through the psychological barrier of Rp. 9,000 = US$ 1,00.

On Friday, May 24, the exchange rate for Indonesia's currency against the greenback hovered just under the Rp. 9,000 level at Rp. 8,995.

Since January of this year the Rupiah has demonstrated a strengthening, gaining 15% from the January levels when it traded at Rp. 10,500 to the U.S. dollar. Some experts in Jakarta's forex market expect the Rupiah to strengthen further, achieving an eventual trading plateau of near Rp. 8,000. The same experts, however, quickly caution that current advances will quickly collapse and the currency will retreat if President Megawati's government is seen to backtrack on its program of economic reform.

Effects on Tourism

Because much of Bali's tourism industry is price-based in U.S. dollars, the effect of a shift in the Rupiah's value on the tourism economy will continue to be something of a mixed bag:

- Hotel prices, published mostly in U.S. dollars will be unchanged. Meanwhile, operating margins of hotel operators will narrow as they are compelled to spend more of their dollars to pay their Rupiah-based local salaries and energy costs.

- Restaurant dining and shopping experiences will become more expensive as visitors will spend more of their home currency to purchase the Rupiah necessary to dine and shop. The effects in the Australian market, one of Bali's most important sources of visitors, will be somewhat offset by a strengthening of the Australian dollar in recent weeks.

- Tour and transportation operators, already under pressure from dramatic increases in fuel prices, will be faced with the possibility of having to increase their U.S. dollar based tour and transfer prices which were priced and quoted on vastly different rupiah rates for transport and guide services.

Much Ado About PrepCom

Largest Conference in Bali's History Now Underway.

The Preparatory Committee Meeting - Prepcom IV on Sustainable Development is now officially underway in Bali - the largest event in Bali's history thrust upon the island just two months ago when President Megawati Soekarnoputri suddenly shifted the meeting from its original venue of Jakarta.

The Conference, which will involve 300 ministerial level officials from 190 member-countries of the United Nations, is expected to also draw attendance from a world-wide network of non-governmental organizations (NGO's) eager to provide their input on international development and environmental policies. In all, an estimated 6,000 -10,000 visitors to Bali are expected in connection with the event.

Preliminary meetings, attended by senior officials, are scheduled to take place between May 27 and June 4. Then, Indonesia's President Megawati Soekarnoputri and United Nations Secretary General Kofi Annan will present opening addresses for the ministerial level meetings set to take place June 5 - 7.

Beautification program

Roads leading from the airport to the Nusa Dua area have undergone an intensive "clean-up fix-up" campaign repairing road shoulders, drainage, and foliage along the boulevard leading to the Nusa Dua Complex - the main focus for the meetings. An additional 100 street cleaning workers have been employed to spruce up the main thoroughfares of the south island, including 50 uniformed cleaners for the Nusa Dua Complex. In anticipation of attendance by members of NGO's expected to congregate and "camp" around the main meeting venue of the Bali International Convention Center (BICC), the Bali cleaning services have contracted the services of an additional 3 dump trucks and a mobile portable toilet.

Intensive Security Preparations In Place

Over 5,000 police officers have been deployed to protect the island and its guests during the conference dates. Additional officers have been called up to help maintain peace on the island from National Headquarters in Jakarta, Jakarta, West Java, Central Java and West Nusa Tenggara police forces. Police enforcement efforts will be supplemented by an elite 25-man U.N. Security team, four Companies from the Indonesian Army, equipment and men from the Indonesian Air Force and Marine Corps, and at least one navy gun ship will be standing by off shore.

Over the past weeks, members of elite mobile police brigades have been practicing crowd control techniques and emergency contingency situations, including mock evacuations of hotels in the event of a bomb threat.

As a final guarantee of security, Denpasar's Police Chief DBM Suharya has enlisted the support of local religious leaders and the thousands of members of pacalang or traditional civilian defense force found in every Balinese banjar.

Meanwhile, Bali's Chief of Police, Brigjen Pol. Drs. Budi Setyawan, M.Sc sounded an ominous warning whilst speaking after a joint prayer meeting of the island's religious leaders where he emphasized that while primary enforcement efforts will be preventative in nature, he is not prepared to rule out the use of any repressive means at the police's disposal should they encounter any elements trying to disrupt the meetings.

Because of the threat of worldwidce terrorism. special protection services will be extended to the U.S. and Israeli delegations attending the event, both groups expected to attend with members of their own intelligence and executive protection services.

Travel Consortium Largely Ignored

Apparently, a travel consortium comprised of Royalindo Private Conference Organizers and the Bali Tourism Board is being bypassed by many of the official delegations who have made their own travel arrangements directly with local hotels and tour operators.

Reflecting this fact, only 1,500 delegate have registered for the event via the "official" Royalindo/BTC Consortium causing, somewhat surprisingly, the consortium to downgrade the number of busses ordered for transportation during the event from 150 to just 60 units.

What's On The Agenda

The Prepcom IV is the final preparatory meeting leading up to the Earth Summit scheduled for Johannesburg later this year, a meeting sometimes referred to as Rio plus 10.

Among the items slated for discussion on the ambitious agenda include: sustainable development; IMF policies and foreign debt rescheduling issues; good governance; and the north-south dialogue.

Stay tuned to balidiscovery.com for regular updates on Prepcom IV.

Grounds to Celebrate

Bali Hyatt Launches Events & Cuisine Guide.

The Bali Hyatt one of the island's classic resorts located in Sanur Village, has just launched an Events & Cuisine Guide entitled Grounds for Celebration. A compilation of the many creative themed events and exotic cuisines that have been on offer at the Bali Hyatt Resort over the past 28 years, the Guide has been designed as one stop information guide to assist the professional meeting and incentive planners.

Commenting at the launch of the Events & Cuisine Guide, Mr. Brad Kirk, General Manager of Bali Hyatt said, "It is part of our contributions to our beautiful island that has been the source of inspirations for our resort for its spectacular beauty, rich creativity, genuine hospitality and wonderful celebrations. We must work hand in hand to promote the destination more aggressively. The Events and Cuisine Guide is one of the tools to keep our partners and potential customers aware of the many possibilities that Bali and Bali Hyatt have to offer."

More information: Plan Your Next Meeting in Bali

The Dream Continues

From the U.S.A. Another Post-Contest Entry.

While the official contest may be over, the excellent entries linger on. Carrie Kim, Carismea@aol.com, of Seattle, Washington (U.S.A.) was inspired, reportedly while in the process of cooking some Mie Goreng, to send the following entry in the form of a recipe.

RECIPE FOR A DELICIOUS BALI DREAM HOLIDAY

1.) Begin by selecting the finest ingredients the world has to offer:

Take your pick! The garden of Bali is a bountiful Eden. Look for elegantly splayed coconut and sugar palms gracefully fanning outward, kissing the wind. Notice the luminescent green rice paddies tucked into the countryside, glistening in the sun like emerald cut jewels. Toss in delicate pink petals of fragrant frangipani, fiery red hibiscus and the playful plumes of rhododendron. Wilted spirits will ripen in this tropical garden paradise.

2.) Now add to your dream exotic flavors and aromatic spices:

Glide between baskets of golden cinnamon and earthy nutmeg. Let your senses be seduced by the enchantment of the market. Observe how piles of freshly stacked papaya and melon fruit blend together with bins of coconut bowls, rattan tablemats, and bamboo trays. Exchange smiles as market ladies in colorful sarongs fry shallots, lemongrass and chili into pungent urab.. Go on, sample just a taste! The savory aroma of curries, smoked satays and honey cakes meld sumptuously together. Dulled senses will awaken fresh and anew.

3.) Blend in equal parts of dance, art and music:

The delight and splendor of Bali's cultural arts can be experienced everywhere. Observe the careful hand of a skilled craftsman carving an intricate barong mask, or follow the melodic sounds of a marching gamelan procession. Take notice of brilliant paintings setting off walls in a dance of color throughout the art markets. They reflect intoxicating green, deep gold and magenta: the colors of Bali. Whether absorbed in a spellbinding kecak dance, or captivated by the grace of young nimble girls performing legong, let this beautiful culture sweeten your spirits and season your heart.

4.) Raise your dream to temperature, then slowly begin to cool:

Simmer down where the meridian sun connects with the shimmering blue waters along Bali's golden shores. Notice the colorful fishing boats gliding out to sea. Commune with the little children as they splash and play among the waves. Let this delightful warmth unfold you. The temperature is always just right for a dip into this ancient sea. Allow the cool, healing waters of Bali to dissolve worries of the everyday world. You will leave this aquatic paradise feeling restored and balanced. Tip: To avoid burn, add a dash of sunscreen!

5.) Serve your dream fresh, garnished with a pinch of imagination:

Lastly, tuck a flower behind your ear, adorn a colorful sarong and visit one of Bali's majestic temples. Here, delicately towering pagoda-like meru rise up among the heavens and call down deities, ancestors and spirits. Ornate shrines, gongs and flowing penjors culminate with offerings of jasmine, rice cakes and fruit. Sweet, smoky incense swirls in with ethereal sounds of a chanting priest.

These are the moments Bali translates like a banquet of lavishly served dreams. If dreams are food for imagination, then Bali is the essential ingredient needed to feed your mind, body and soul.

Bon Appetite!

An Oberoi Kofi Break

U.N. Secretary General Visits The Oberoi Enroute to Dili.

The Secretary General of the United Nations, Mr. Kofi Annan enjoyed a brief stay at The Oberoi, Bali on May 18, 2002, on his way to participate in nationhood celebrations in Dili, East Timor.

Staying at The Oberoi, Bali's Royal Villa Hibiscus, the Secretary General was accompanied by Mrs. Annan.

During their brief stopover, the Annan's and a delegation from the U.N. enjoyed a traditional Indonesian Rijstaffel dinner at their Villa.

Commenting on his visit to Bali, Mr. Annan said upon leaving the resort, "We have been very comfortable in this paradise."

More information: Book a Stay at The Oberoi, Bali

Merpati Takeover Imminent?

Setiawan Djody Moves Closer to the Reins at Troubled Merpati.

The English language Jakarta Post reports that flamboyant Indonesian businessman Setiawan Djody has prepared a financial package of between US$300 to $500 million that, if approved by the Government, will make him the majority owner of Merpati Nusantara Airline (MZ).

By way of a consortium comprised of the Djody-owned company PT Setdco working in collaboration with unnamed Canadian and Australian financial institutions, the deal will come to the rescue of the state-owned airline which is in technical default of a Rp. 331 billion debt owed to the Indonesian Bank Restructuring Agency (IBRA) that fell due on April 11.

Ailing financially since 1998, MZ has grounded its fleet of Indonesian-manufactured CN-235 aircraft included in a balance sheet of other aircraft and assets with an estimated value of Rp. 900 billion.

Despite a widespread perception in the airline industry that MZ is badly over-staffed and inefficient in its operations, Setiawan has publicly vowed that he will not reduce rank and file staff or change the senior management structure of the airline should his bid for a takeover be successful.

Setdco's offer, which will pump equity into the airline and assume its debt burden, must first receive the approval of the Ministry for State-Owned Enterprises. Whether or not the deal will allow Setdco to benefit from a promised Rp. 230 billion "haircut" from its Rp. 330 billion debt promised by IBRA to MZ remains unclear.

MZ, the former Garuda Indonesia subsidiary, operates a number of domestic and regional routes with heavy emphasis on eastern Indonesia.

More information: Related Story: Setiawan Djody to Acquire Merpati?

Soul of Color

Nunung WS Solo Exhibition at Ganesha Gallery through June 21, 2002.

One of a handful of Indonesian women artists fully dedicated to pure abstract art, Nunung WS is holding a one-woman exhibition at the Four Seasons Resort Bali at Jimbaran Bay's Ganesha Gallery through June 21, 2002.

In an artistic career spanning four decades, Nunung WS has participated in a number of exhibitions throughout her native Indonesia as well as the U.S.A., the Netherlands, and Malaysia. She has also taught art in Indonesia and Holland.

Arguably the greatest female exponent in a style dominated by men in Indonesia, Nunung's work embodies feminine intuition and a sense of mystery that contrasts with the more technical and masculine oeuvre of her male contemporaries. Her paintings emphasize color fields rather than shapes. A large dark central field against which smaller fields of other colors contrast usually dominates them. Ringed with lighter edges these seem to "float". Numerous layers of shimmering colors create rich fields of color that can exercise a powerful emotional effect on the viewer. Using a unique technique, she mixes her pigments on the canvas rather than the palette. Nunung once said, "I like to look for the perfect colors by mixing them directly on the canvas. This way, infinite possibilities can be explored in a living process. If I mix the color in the palette beforehand and apply them afterwards the process becomes little more than a lifeless technique."

Nunung's art is obsessed with exploring the very essence and meaning of color. Her aim is to use her long experience and unusual technique to intuitively discover perfect combinations. She describes her quest as a search for the soul or spirit of pure color something she experiences as an emotional vibration. She is introspective and spiritual. Indonesian art critic Hilda Soemantri wrote of her work, "In her spiritual expedition, the dark hues reflect her contemplative mood, the large color field is her spiritual world, the sensitive lines her last personal assertion, her only link with the real world."

The Ganesha Gallery is located in Village IV of the Four Seasons Resort Bali at Jimbaran Bay. For more information telephone the Gallery's Director, Ms. Maya Sujatmiko at ++62-(0)361-701010. The exhibition is open daily from 10.00 a.m. until 6.00 p.m..

Of Mice and Swiss Cheese

6 Bali Travel Suppliers Join Forces at Major European MICE Event.

6 Bali-based travel companies, members of the Bali MICE Initiative have just returned from Geneva, Switzerland where they participated in a joint representation at EIBTM - one of the world's major travel shows concentrating on the meetings, incentive, conference, and exhibition sector.

Held at Geneva's PALEXPO Center May 21-23, 2002, the exhibition gathers together destinations, hotels and resort, and private conference operators with those who plan and book major events.

The six members of the 53-member strong Bali MICE Initiative traveling to Geneva were: Bali Discovery Tours, Bali Inter-Continental Resort, Balihai Resort & Spa, Kelana DMC, Le Meridien Nirwana Golf Resort & Spa, and Pacific World Bali.

Bali's visibility at the important travel event was assisted by the distribution of the 100-page Bali Mice Guide 2002 - a comprehensive guides to all the components of Bali's meeting and conference sector. Also launched during the Geneva event was the www.micebali.com website - the electronic rendition of the guide.

The Bali MICE Initiative and the annual Bali MICE Guide are spearheaded by Bali Discovery Tours.

More information: Visit the Initiative's Website