BALI UPDATE #323 - 25 November 2002

Impressed With Bali

Oz Travel Leaders Conduct Inspection Visit of Bali.

Seeking first-hand knowledge of the security situation in Bali, top executives of the Council of Australian Travel Operator (CATO) conducted an inspection to Bali November 21-24, 2002.

Coordinated by Garuda Orient Holidays and Bali Discovery Tours, the leaders of the organization representing Australia's travel tour operators paid calls on Mr. Ross Tysoe, the Australian Consul based in Bali; representatives of Bali Village, the Bali and Nusa Tenggara Pacific Asia Travel Association (PATA) Chapter, and Bali Tourism Board; various members of the Casa Grande - the association of four and five star hotels in Bali; ranking representatives of the Indonesian police force; paid a visit on the Bali International Medical Center; and made an emotional respectful visit to "ground zero" – the scene of the deadly terrorist attack of October 12^th.

Traveling in the entourage were Mr. Peter Daily, Chairman of CATO; its Vice Chairman Mr. Michael Hay; Mr. David Baker of David Baker and Associates the company providing a communication link back to the Australian press and public for CATO; and Mr. Ian Norris, the CEO of Garuda Orient Holidays in Australia.

Meeting with the delegation before their return to Australia, www.balidiscovery.com learned how impressed the representatives of CATO were with the commitment of the Balinese people to rebuild their tourism-based economy in the wake of the October 12^th terror outrage. Equally impressed with the cooperation of local police authorities and the team of international investigators who are succeeding in apprehending the perpetrators of the attack, during a meeting with police the CATO members learned of security measures in place to minimize the possibility of a repeat attack and received the assurances of safety for Australian visitors from the Island's Chief of Police.

Australian tourism to Bali generates some US$350 million in foreign exchange each year for Bali. Prior to the terrorist attack, Bali represented Australia's number one choice as a foreign holiday destination.

Based on their findings during the inspection trip, the CATO delegation indicated they would be returning to Australia to redouble the efforts of their organization to quickly restore the health of the Bali tourism economy.

In the photo shown at www.balidisocvery.com, Mr Michael Hay the Vice Chairman of CATO on the left and Mr Peter Baily, the Chairman of the organization on the right.

Editorial: The Best Use of Promotional Funds

With Little Funds to Promote Tourism, the Best Place to Spend May be at Home.

The events of October 12^th have fueled the long-standing public debate on the need for Indonesia to spend money in promoting its national tourism product and the need to prevent further erosion of foreign tourist arrival figures. In the midst of competing destinations in the region spending as much as $100 million annually to attract foreign visitors, Indonesia ponders endlessly about spending a fraction of that amount to help restore its national tourism image.

Sadly, talk as opposed to action seems to to remain the order of the day with little evidence of a promised $35 million in tourism promotional funds materializing in any form that will persuade the tourism sector of the government's seriousness of intent in reviving tourism's fortunes.

Overlooking the Obvious?

Without discounting the need for a well conceived and properly orchestrated international media campaign, the cheapest and most cost-effective means of kick-starting the national tourism industry may be more readily at hand.

Hotels, tourism attractions, and Indonesian inbound tour operators are all reeling under the fallout and financial impact of the October 12^th terrorist attack on a Kuta night spot. Already struggling during the prolonged business drought precipitated by the 1998 multi-dimensional political and financial crisis, the most recent blow visited upon Indonesia by the October bombing has seen tourism operators compelled to further reduce staff numbers and cut back their meager budgets for promotional activities. For many of these operators, already living on the brink of extinction, there's little "fat" left for them to cut short of taking the climactic step of permanently hanging a "Closed" sign on their front doors.

Against this background we suggest that the most efficient and cost-effective tool available to the Government in their efforts to restore vitality to its tourism products is via a program of direct subsidies to all Indonesian tourism operators participating at international travel fairs. If all or part of the average US$ 2,500 - 4,000 it costs Indonesian tourism operators to rent a stand at major travel exhibitions could be reimbursed, this single act would have the most immediate and lasting impact on getting tourism arrival numbers once again flowing through the Nation's major gateways.

In considering our suggestion, we submit the following:

· The Indonesian tourism product is overwhelmingly driven by wholesale travel - packages and tours sold in the brochures of the world's major tour operators. Product and space in these brochures are negotiated at major travel exhibitions such as World Travel Mart (WTM), ASEAN Tourism Forum (ATF), PATA Mart, IT&CMA, and AIME.

· Indonesia's best travel salespeople are already employed by the nation's hotels, tourism attractions, and tour operators. Because of the dire economic straits of the Nation's travel industry, this vast reservoir sits idle and untapped back home in Indonesia when they should be actively participating in travel exhibitions abroad. By subsidizing the appearance of these people at major travel exhibitions Indonesia would be putting its most talented front line promoters in direct contact with the key decision makers in international travel.

· Unlike some other uses of promotional funds, government-provided subsidies to Indonesian participants at travel exhibitions would never be wasted. Travel operators would still have to find substantial amounts of money to cover air travel, accommodation, and the cost of promotional material associated with their appearance at travel shows. Thus, even in the face of generous subsidies, travel operators will not fail to take an aggressive, result-oriented approach before committing to join a travel exhibition.

· Large Indonesian delegations at major travel shows create a special presence and impetus for the Indonesian travel product, creating new markets and market confidence along the way.

· The cost of subsidizing participation by all Indonesian operators at major travel exhibitions for an entire year is relatively small, the equivalent of a very modest international ad campaign of a few advertisements on CNN.

· Without the type of financial support suggested, it will likely take several years before Indonesian travel operators have the financial capability to join these international events, further delaying the return to full health of the national tourism industry.

We admit our suggestion of direct financial support to travel operators wishing to participate at international travel shows and exhibitions is exceedingly straightforward and simple. And, yes, it also lacks the pizzazz of a slick TV commercial campaign or a well orchestrated boondoggle of legislators on an international study tour.

But for what such an approach misses in glamour, it makes up for in the simple common senses of getting those people most able to sell the Indonesian travel product back on the road doing what they do best.

Online Registration for Hotel Security Conference

Hotel Asia Pacific Security Workshops in Bali and Jakarta.

Hotel Asia Pacific - Asia's leading magazine for the Hotel industry will be holding two hotel security workshops in Bali and Jakarta. With financial sponsorship from Starwood Hotels and Six Continent Hotels, the workshops will gather top speakers from law enforcement and security experts in the region to share the latest in technology and training techniques for the enhancement of security at hotels and tourist centers.

While the final roster of speakers is still to be finalized this week, General Drs. Made Mangku Pastika, the lead investigator in the Bali terror attack of October 12^th has been invited to act as keynote speaker at the workshop. Foreign security experts and law enforcement officials will share with the participants the lessons to be learned from 9-11 and 10-12; demonstrate the latest security technologies, share training techniques for improving hotel and tourist attraction security; present case studies on how other destinations have dealt with security issues; and explore guidelines on crisis management.



The cost of participation for the Bali workshop is only Rp. 100,000 per person, with all funds collected to be donated to the Casa Grande Bali Relief Fund. The Jakarta conference will cost US$ 50 per person plus 10% V.A.T.. Each participant will receive a complete set of course materials, coffee breaks, lunch, and a certificate of participation.

Register Online

Space will be limited at both workshops with reservations on a first-come-first-served basis.

More information: Register Online!

Aiding the Enemy

Malaysian Tourism Minister Calls for ASEAN Unity.

Dato Paduka Abdul Kadir Bin Haji Sheikh Fadzir, the Malaysian Minister for Culture, Art and Tourism has sounded a warning to the West that the current series of travel advisories issued against developing countries, such as Indonesia and Malaysia, renders those making such warnings into becoming unintentional terrorists.

Explaining that terrorism is an international problem, Datok Abdul Kadir reminded western powers that travel advisories against friendly nations are the moral equivalent of economic sabotage in terms of the damage they inflict on their economies. He went on to ask developed nations to be more supportive of modernization efforts underway in countries such as Indonesia and Malaysia, and not brand these countries as havens for terrorism or stigmatize them for their majority religious beliefs.

Malaysia's Minister for Culture, Art and Tourism in his remarks made at the opening of the Malaysian Mega Sale Carnival opening in Johor Bahru, Malaysia, also called on ASEAN member nations to unite in their response to western travel advisories and warnings.

In with the Good, Out with the Bad

Bali Celebrates the Festival of Galungan.

On Wednesday, November 20^th, or more precisely on the Balinese calendar - Buda Kliwon Dunggulan, the island of Bali celebrated the religious holy day of Galungan, the day in the Hindu ritual cycle celebrating the triumph of good over evil.

Across the island Penjor bamboo altar-poles decorate streets and doorways of every village. Their presence marking an ancient victory of Dharma over King Mayadanawa, an evil and godless king who once controlled Bali.

An official holiday in Bali, on Galungan Balinese mark the day by donning their traditional garbs and visiting their ancestral temples.

SIA Boosts Bali Tourism

Singapore Airlines Launches Aggressive Regional Campaign.

With a normal schedule of four flights daily to Bali, Singapore Airlines (SIA) is taking aggressive steps to jump start Bali's tourism industry in the wake of October's terror attack.

Look at These Prices!

SIA has launched a SID 288 (approximately US$ 164) "no frills" package including air fare Singapore - Bali - Singapore, transfers, and 2 nights accommodation. Among the Bali hotels participating in the "no frills" promotion are Bali Dynasty Resort, Melia Bali, Melia Benoa and the Radisson Sanur Hotel.

To back up the campaign three-quarter page advertisements were placed in the Singapore Straits Times that managed to generate some 2,000 new bookings to Bali during the first 24 hours of the "no frills" offer.

According to Mr. Ang Beng Siong, Bali Manager for SIA, the special short-term offer will soon be extended to other Southeast Asian markets including Malaysia, Thailand, the Philippines, and Vietnam. Global interest in Bali will be rekindled via SIA's "Enchanting Bali" package soon to be launched for the period January-March 2003.

We Get Mail

Readers respond to our Editorial – The First Rule of War in Bali Update #321.

balidiscovery.com's editorial The First Rule of War evoked a number of comments from Bali Update readers around the world.



Michael, an Indonesian-based reader, diverse@indosat.net.id, voiced the following support:

I hear applause echoing at computer terminals around the globe. The provision of the expertise and resources to combat the terrorist threat in areas considered higher risk is one of the most lucid ideas I have heard to date. Give Bali the tools and expertise to create increased security and thus provide visitors with the confidence to support her, and other nations in their battle against an insidious foe, which, in reality, knows no borders...



Karen Linnell, the "Global Gypsy", karenlinnell@ihacj.com, provided the following feedback:

Why did the USA call the world to New York to spend money in response to terrorism - but impose a world boycott on Indonesia/Bali? What do the Americans want from Indonesia that would cause them to deliberately undermine it economically?

It is not the terrorism that caused Bali's current problem but the USA response - and Indonesia/Bali played their game. Let the Indonesian and Balinese leaders ask WHY and all the world's media will start looking for the answer. Bali won't need a tourism fund - the publicity will be free and the response from tourists will be fast - they will flock to Bali.

Watch replays of Mayor Gulliani's interviews after the New York terror - his was the correct strategy and the world followed his lead. Let Indonesia/Bali get their response right and the USA will quietly lift the bans before their Machiavellian manipulation of tragedy becomes media bait to embarrass their leaders.



A travel consultant from Queensland, Australia, Andrew Sivijs, andrew@etravelconsult.com, shared the following comments:

As we know, our industry gets caught up in the politics of these situations and hasty reactions and statements are often meant to appease the immediate fears of worried citizens. As you rightly, state the best way to deal with these twisted maniacs is to hit them where it hurts - economics. Travel, travel and more travel flies in the face of their cowardly strategy. As we know, their evil acts debilitate and crush those they profess to be fighting for - no trade or export activity, no income.

I have had a long lost mate of mine from high school days contact me this week and we've discussed Bali. He wants to take the family there next year and was seeking my advice. I naturally gave the thumbs up and will be talking to you shortly regarding their travel plans. All going to plan, we will also look at our reunion in Bali in the near future.

What better place to enjoy old friends and share memories while our young kids make new friendships. Doing our bit to frustrate the wicked.



Marc Jacobs of Kelana DMC, kelana@indo.net.id, wrote to say:

Congratulations with your editorial ... It is brilliant!



While Fran Lancaster, franlancaster@hotmail.com, said:

Most excellent article. Now let's hope the "powers that be" get the message.



Finally, Bill Fitch filo@picknowl.com.au, a travel professional from Australia chimed in to say:

Your editorial is commendable: insightful, balanced (almost) and well written. You are perhaps unduly harsh towards politicians who are in a situation of 'damned-if-they-do and more-than-damned-if-they-don't-and-something-happens'. My old Grandmother used to say, 'Honey brings more kisses than vinegar.' I hope that Adelaide gets just one direct flight a week from Garuda (or Virgin or Paradise) so that we here can come to Bali but by-pass half of the rest of the world en-route as Qantas would like us to do. Cheers and best wishes to Bali.

More information: Editorial: The First Rule of War

Lindsey Moves to Bali Dynasty Resort

Christine Lindsey Moves from Bali Hai Cruises to South Kuta Resort.

Christine Lindsey has left her position as Director of Marketing and Sales at Bali Hai Cruises to assume the role of Director of Marketing at the Bali Dynasty Resort in South Kuta.

As reported in Edition #321 of Bali Update, Christine's role at Bali Hai Cruises has given to Pande Ardika, just appointed Sales Manager by the Bali day cruise and water sports operator.

Christine, an Australian national with a dinstinguished career in travel industry marketing, will fill the position formerly held by Julie Ong, who recently left the Bali Dynasty Resort to pursue other challenges.

More information: Send Christine Lindsey a Note of Congratulations

Japanese Agents on Bali Inspection Tour

Next Step in Regaining the Faith of Japanese Travelers.

A group of 100 Japanese, comprised of 85 travel agents and 15 members of the Japanese press, are visiting Bali from November 26-28, hosted on flights provided by Garuda Indonesia and Japan Airlines.

The inspection visit is being hosted to demonstrate first-hand the safety of travel to Bali following the October 12^th terror attack on a Kuta nightspot.

The official travel warning from the Japanese government currently stands at "Level 2" with "Level 4" representing the highest level of warning against travel to a destination.

Because a "Level 2" warning allows Japanese tourists to visit Bali, but recommends a degree of caution, it is hoped that the visit by the Japanese travel agents and press will make a major contribution in helping to regain the confidence of Japanese travelers considering a visit to Bali.

The Japanese market represents the single largest source of foreign visitors to Indonesia.

Warnings Come Down A Notch

6 Nations Lower Their Guard on Travel to Bali.

(24 November 2002) International travel advisories for Bali continue to "soften" with each passing week following the terrorist attack on a Kuta-Legian night spot last October 12^th.

As reported in Bali Update #322 on November 18, 2002, the Royal Netherlands' government has lifted their travel warning for Indonesia. Meanwhile Japan, following an inspection visit by their tourism officials, reduced their warning on Bali travel.

Similarly, Australia has made their travel warning less Bali specific; now only cautioning their nationals from undertaking non-essential travel in Indonesia. New Zealand and Italy, while still urging their citizend to take caution, have also lowered the intensity of their travel warnings for Bali.

Far Pavilions in Sanur

PATA Bali Chapter Hosts an Indian Experience December 7th.

The Bali and Nusa Tenggara Pacific Asia Travel Association (PATA) Chapter is hosting "The India Experience" on Saturday, December 7, 2002, at the Wantilan Hall of the Aerowisata Sanur Beach Hotel.

Over 20 local vendors will be selling their wares in the foyer of the hotel's ballroom starting from 3 p.m. until 7 p.m.. At 7 p.m. a special performance of classical Kathakali dance will be presented by the world-renowned Bhaskar Dance Academy, accompanied by an Indian classical percussion ensemble. Coordinated by Ms. Dipika Rai, the cost of admission to the performance is Rp. 50,000 for adults and Rp. 25,000 for children below the age 12 years.

A cash bar will be available during the dance performance.

Tickets can be purchased from the PATA Secretariat via the Bali Tourism Authority Office in Renon. Telephone ++62-(0)361-226578.