BALI UPDATE #307 - 05 August 2002

GHM Ltd. Loses 2 Bali Hotels

Sudden End to Management Contract at Chedi and Serai Properties.

General Hotel Management (GHM) Ltd. has made an 11^th hour announcement declaring that their management of the Chedi Ubud and The Serai Manggis will end on August 1, 2002.

Alila Hotels

Living up to its name which derives from the word "surprise" in Arabic, Alila Hotels have taken over the properties in the course of a few days between the announcement of the change and the actual handover.

The 60-room The Chedi and 58-room The Serai Manggis are being re-launched as the Alila Ubud, Bali and Alila Manggis, Bali, respectively.

Both companies insist the decision to change management was amicable and mutual.

Personnel Changes

Ms. Alison Fraser, current General Manager at the The Chedi will be moved by GHM to lead the The Andaman, Langkawi, their newest property in Malaysia. She will be replaced in Ubud at the Alila Ubud, Bali by Frederic Flageat-Simon, who is also Managing Director of Alilia Hotels.

Ms. Amanda Pummer has been retained by Alila Hotels to remain at the Alila Manggis, Bali in her current capacity as General Manager for the east Bali resort.

Business as Usual

Alila Hotels, who assumed control effective 01 August 2002, have vowed to maintain the high standards in place at both properties while introducing innovative improvements over time. All existing contracts with overseas travel partners will be honored. The re-branding process of both hotels is expected to be completed by late October 2002.

Alila Hotels, an Indonesian owned management company, also operates the Alila Jakarta in Indonesia's capital, just blocks away from the National Palace.

GHM retains its management of The Legian and The Legian Club, and is reported to be actively seeking new management contracts on the island.

Editorial: Who Goes There – Friend or Foe?

Balidiscovery.com asks U.S. Secretary of State Colin Powell to Make His Intentions Clear Towards Indonesia.

In the wake of the whirlwind visit by U.S. Secretary of State, Colin Powell, to Indonesia, members of the nation's tourism industry are growing increasingly confused as to the real nature of U.S. intentions toward this, the 4^th most populous nation in the world.

With great fanfare, the U.S. Secretary of State arrived in Jakarta and promised $50 million of support to Indonesia in the U.S. - led international war on terrorism. Other initiatives announced in connection with Powell's visit included the resumption of energy talks between the two countries, on hold since the start of the regional economic crisis in 1997, and a thawing in U.S. relations with the Indonesian military establishment.

Those Problematic Indonesians!

While the U.S. continues to pay grudging praise and encouragement to Indonesia's efforts to modernize its economy and create democratic institutions, it's becoming increasingly clear that Washington finds dealing with a free and pluralistic Indonesia much more problematic than it did when relations were sorted out behind closed doors with a single, all-powerful autocratic leader. The remarkable finesse of Indonesia's President, managing to take concrete steps against terrorism without inadvertently bolstering endemic radical fundamentalist movements, goes seemingly unnoticed and unappreciated by Washington's policy makers.

How About a Thumbs Up - Instead of a Hand Out?

In terms of U.S. official relations, Indonesia continues to suffer from U.S. distrust and neglect. Nowhere is this better demonstrated than in the current U.S. Travel Advisory on Indonesia. That advisory, issued and unchanged since November 23, 2001, continues to caution American travelers "to defer non-essential travel to Indonesia."

Because, in fact, travel to Indonesia is demonstrably safe, this nation would benefit most from an urgent revision of the current negative travel advisory that continues to impede growth in U.S. travel arrival numbers to Indonesia.

Given the choice, Indonesia would prefer America's tourist visitors over its handouts of financial aid.

Food For Thought

The current U.S. State Department Travel Advisory on Indonesia is reflective of the U.S. State Department's desire to use travel advisories to whip Indonesia and other countries into shapes more acceptable to the Bush Administration. Clearly, such warnings, as a means of providing meaningful information for American's traveling abroad, are utterly useless.

Why do we consider U.S. Travel Advisories more as tools of power politics than as sources of information for international travelers?

Consider the following:

* The travel warnings of most nations are regularly updated and changed, while it is now more than 8 months since the last advisory issued by the U.S. State Department has been updated.

* Most nations - including the United Kingdom, Canada, Australia, Germany and Japan, do not try to describe Indonesia's vast array of cultures spread across 17,508 islands in simplified, homogeneous terms. Those countries, unlike the U.S., take both the time and effort to tell their citizens that many areas of Indonesia, including Bali, remain perfectly safe for visitors.

* The leading U.S. Travel Magazine, Travel & Leisure, in its annual survey of its well-traveled readers, just voted Bali as the best island destination in the world. Obviously, when it comes to safety in Bali, the American traveling public knows something the U.S. Government does not.

* During the more than 8 months in which the U.S. has been urging Americans to defer travel to Bali, the island has played host to numerous important international conferences, including the recent PrepCom IV Conference attended by large U.S. and Israeli delegations without major incident.

Forgive us if we conclude that someone in Washington simply refuses to grapple with the "real" security situation in Indonesia. As reported before, U.S. Ambassador to Indonesia, Ralph Boyce, in direct contradiction with his own government's travel advisory, has publicly stated that he considers many areas of Indonesia safe for foreign visitors!

As an American-owned member of Bali's travel fraternity, balidiscovery.com enjoys a perfectly safe and peaceful existence in Bali. As a result, we are particularly saddened and concerned by U.S. official policy towards Indonesia as reflected in the current Indonesian travel advisory.

Beware of Vicious Dog

Secretary Powell's high flying official entourage on its visit to Indonesia has come and gone, leaving the residents of this nation with a $50 million "gift" and a friendly pat on the head, like some pet dog acknowledged for not straying too far from the pack.

However, current travel advisories suggest that the Bush Administration can't quite figure out if its dealing with a occasionally errant pit bill or a faithful collie when it comes to its Indonesian friends.

The sign posted by the U.S. Government at Indonesia's entrance warning "Beware of Large Mean Dog" is wrong on several counts. First, Indonesia, and particularly Bali, remains perfectly safe for international visitors. Second, such warnings continues to offend the dingity of this large and independent sovereign nation, very eager to be allies with the U.S.. One does not label the neighbors "dangerous," while at the same time proclaiming them "good friends." Finally, those in the know - like America's own Ambassador Boyce in Jakarta, accept that travelers to Indonesia have little to fear in terms of their personal safety.

Now that Secretary Powell has seen Indonesian first hand, we hope he'll soon visit the Jakarta U.S. Embassy website and pay the Indonesian people the ultimate respect by changing the outdated and very misleading information it shares with Americans considering travel to Indonesia.

Bali unsafe for Americans?

Sorry, Secretary Powell, but that dog just won't hunt.

It never did.

Police Seize Illegal Pets

Bali Expat's Home Raided by Police. 6 Animals Confiscated.

The Indonesian-language newspaper KOMPAS reports that Bali's provincial police, in cooperation with Government conservation officers, raided the home of an American resident in Bali on July 31, 2002 and confiscated 6 endangered species.

According to the press report, police came to the home of Benjamin Abrams in the beachside Sanur area, seized the animals, and placed them in the protective custody of the Bali Zoo Park in Gianyar. Mr. Abrams, a legal and business consultant on the island, was away in Surabaya at the time of the police visit, and will be summoned by Police authorities upon his return to Bali. Two watchmen at the property have already undergone police interviews in the matter.

Among the animals confiscated were an orangutan, sulfur crested cockatoo, Nias Island Minor birds, and a black-headed Nuri.

Indonesian criminal law provides for a maximum fine of Rp. 100 million (approximately US$11,000) and five years imprisonment for those convicted of illegal possession of endangered species.

Red Hot Chili Peppers in Bali?

Negotiations Underway for Top Musical Group to Perform in Bali this December.

Discussions are reportedly underway for a concert appearance by the Red Hot Chili Peppers, a major U.S. rock/funk/punk musical group of the past two decades, for a Bali performance tentatively scheduled for December 14, 2002.

If the concert does materialize the performance will take place at Bali's Garuda Wisnu Kencana Monument Park on the heels of an Australian tour.

Stay tuned to balidiscovery.com for more details as they become available.

The Patra Jasa Saga

Labor Conflict at 5 Star Resort Continues with No End in Sight.

Over 200 former employees of Bali's Patra Jasa Resort gathered outside the office of the Province's Governor on Wednesday, July 31, 2002, in the latest chapter of a continuing labor dispute with the hotel's management.

The labor confrontation began in April of 2001, when 240 employees of the company objected to the corporate job rotation of the hotel's then General Manager, Mr. Jasa Purba, by staging a wild cat walk-out action. Insisting that the appointment of senior management was their exclusive prerogative, the owners gave an ultimatum to those participating in the illegal strike action: return to work and sign a company loyalty statement or be permanently terminated from the positions.

Eventually the 240 employees staging a sit in at the hotel's entrance were advised by a letter dated May 02, 2001 that their status as employees of the Patra Jasa had come to an end.

In response, the affected workers claimed that under Indonesian law their employment could only be terminated following a mediated bi-lateral negotiation process and appealed their dismissal through the courts. Later, the workers were told by the courts that the company, as a State-owned enterprise of the State Oil Company - Pertamina, was exempt from the mandatory termination negotiation provision of the labor law.

Still undeterred, the employees then sought the support of members of the local Provincial Parliament and the Governor's office, seeking to force the Resort to return them to their former positions. In June, during a meeting between the Governor's office and the dismissed employees without the participation of the Resort's Management, the workers were promised by local politicians that they would definitely receive their jobs back. Seeking to force the Hotel Owner's hand, all the operating licenses of the resort were audited with the Governor's office threatened to close the property if any permits were found not to be in order, saying they would also refuse to extend any permits coming up for renewal unless the affected workers were re-employed.

Check and Check Mate? Apparently Not.

The Governor's Office, finding the Resort's paperwork in order, feared that in issuing the threat they may have exceeded their legal authority. Moreover, because reactions from the business community in Bali indicated that the Governor's Office intervention in labor cases could sabotage efforts to encourage investment in the region - the Governor's office eventually back-tracked on their promises to the workers, admitting it was powerless to force their striking workers' re-employment.

Meanwhile the Resort, insisting that refusing to return to work when originally ordered to do constituted resignation from their posts, sent a letter to the Governor on July 29, 2002, advising that all the deserted positions had been filled over the intervening 14 months by new staff and that the company was only committed to pay the legally mandated severance benefits to staff applying for benefits through the local Department of Manpower and the Administrative court system.

Of the 240 terminated employees, 37 have already accepted the severance package offered by the hotel. Labor regulations for terminated workers allow for between 11 and 43 times the final monthly salary and benefit package, depending on the length of service with the hotel.

The Patra Jasa Resort continues to operate while undergoing a massive renovation of its public areas and rooms, expected to be completed in November of this year.

Tourism Board Meeting Announced

Bali Tourism Board Announces Organizational Meeting August 20-21.

Those waiting for signs of life from the on again off-again Bali Tourism Board (BTB) were given cause for hope with the announcement that an organizational meeting will be held August 20-21, 2002.

Three Types of Membership

At the meeting three levels of membership in the BTB will reportedly be announced: regular members; extraordinary members, and honorary members. Regular members will be comprised of stakeholders from the island's tourism industry; extraordinary members of companies and individuals who, although not direct component of the travel industry, still have significant contributions to make to that sector; and honorary members from private sector and government representatives who have a strong connection to Bali's tourism.

Goal of the August Meeting

Proclaimed as the main goal of the coming meeting is a desire to discover a shared vision and mission for the long-troubled Bali Tourism Board.

According to local press reports, the proposed organizational meeting will be held at the Secretariat of the BTB in the Renon District of Denpasar.

Mountains in the Sky

Exhibition by Shaun Atkinson Through 06 September at The Ganesha Gallery.

Years from now it will be debated: did Shaun Atkinson discover Bali or did Bali discover Shaun?

A famous artist in his own right before he came to Bali, Shaun Atkinson's brooding skies, land and seascapes reflect this Western Australian artist's roots and personality. The shadows ever present in his works bespeak a silence and isolation emblematic of the contrasting beauty and spirit of his sun burnt homeland. Now, reflecting his Bali "period," this trademark style still pervades Atkinson's work intermixed with new themes incorporating gold leaf, volcanoes, and colorful tropical skies suggesting that Atkinson's oeuvre has acquired a new direction during a period of incubation on the island of the gods.

Well known in Western Australia's community of artists, Shaun Atkinson has lectured in Art and served as the Director of the Margaret River Galleries. He has exhibited for the Festival of Perth, Gomboc Galleries, Bunbury Regional Galleries, Gulbenkian Galleries London, and was selected in 1999 as part of Greenhill Galleries "Directors' Choice Exhibition."

His work is included in the Kerry Stokes Collection; Edith Cowan University; Curtin University; University of Western Australia; Ministry of Arts Collection; Parliament House, WA; Lloyd and Liz Horne Collection; Hewitt Collection; Thai Consulate, Perth; Gomboc Collection; Perth College; Ian and Sue Bernadt Collection; and City of Bunbury Collection.

Mountains in the Sky

Shaun Atkinson's current exhibition entitled "Mountains in the Sky" will run at the Ganesha Gallery Four Seasons Resort Bali at Jimbaran Bay through September 6, 2002.

Out to Lunch

Ubud's Premier Restaurant Mozaic – Now Open for Lunch.

A Reason to Eat Twice Each Day

Ubud's most talked about restaurant Mozaic – Restaurant Culinaire, in response to popular demand, is now open for lunch.

While evening diners will still enjoy Mozaic's romantic tropical setting and the unequalled value of its 5 and 7 course chef's menus, day time visitors can partake from a lighter lunch time fare or the snacks on offer in the restaurant's café lounge. The luncheon delights prepared by Mozaic's Cordon Bleu trained chef, Chris Salans, include a variety of light repasts such as salads, sandwiches, small pastries, and delicious homemade desserts.

Mozaic is located at Jalan Raya Sanggingan in Ubud. Telephone ++62-(0)361-975768.

More information: Bali Update Mozaic Review: Dine Every Mountain

Czuba's Back

Paul Czuba Returns in Sales Role at Ritz Carlton Bali. Criag Senior Assigned to Doha.

After a hiatus serving in Sales & Marketing roles with Ritz Carlton in Egypt and Doha, Paul Czuba has returned to the Ritz Carlton Bali.

Czuba replaces Craig Senior, who has been transferred by Ritz Carlton to Doha.

A U.S. national, Czuba's first assignment in Bali was from 1996 until 2000 in a similar sales capacity at the Resort. He joined the Ritz Carlton 12 years ago, initially working in Washington, D.C. and Hawaii before accepting overseas assignments with the group.

Czuba told balidiscovery.com "I could not be happier about returning to Bali and look forward to opening our new thallaso spa in late October and our new all-villa property during the second quarter of 2003."

More information: Send an E-mail and Welcome Paul Back to Bali

A Kid's Menu

Golden Lotus Charity Drive Nets Over $32,000.

The Golden Lotus Restaurant at the Bali Dynasty Resort has concluded another successful season of its "Big Heart Charity Draw" bringing to more than $32,000 the money raised for east Bali educational projects.

Run over the past three months, 5% of all food sales at the popular Chinese eatery were set aside for two schools operated by the East Bali Poverty Project. As an added bonus, diners who visited the restaurant a minimum of six times during the promotional period were entered into a lucky drawing to win two round trip tickets to Singapore on Singapore Airlines and two nights complimentary accommodation in the Lion City.

Winning this year's competition was Bali resident, Ms. Eliswati. The photograph shows her together with Singapore Airline's Bali Manager, Ang Beng Siong.

The "Dine Out to Educate a Child" program supports two schools and over 90 students in the impoverished area of East Bali.

More information: Book a stay at the Bali Dynasty Resort