BALI UPDATE #331 - 20 January 2003

Bali by the Numbers - December Arrivals Figures

Will the Rebound Last? balidiscovery.com looks at 2002 Arrival Figures.

As a part of balidiscovery.com's continuing series Bali By The Numbers, the December Foreign Direct Arrival Figures provide a complete look at month-by-month arrivals for the past 4 years.

The Ups and Downs of 2002

The year of 2002 showed that:

• The recovery from the effects of 9/11 in 2001 were complete by May 2002.

• The Months of May through September represented some of the strongest arrival months in the history of Bali tourism.

• The effects of the October 12^th terror attack were immediate, rending arrivals for October through December the worst month to month performances in at least the past 4 years.

• Aided by both Idul Fitri and Christmas/New Year Holiday demand, the foreign arrival figures improved in December totaling 63,393. While this ended, at least temporarily, the downward slide of arrivals following the October attacks, the December figures were down 31.6% from average arrivals for December 1999-2001.

• Total foreign direct arrival for 2002 decreased 5.2% when compared with the year 2001, and down 5.7% when compared with the average yearly arrival for the years 1999-2001.

Download the Figures

Use the link below to download monthly arrival figures for 1999-2002.

Next Week: Details Arrivals by Country of Origin

Bali By The Numbers continues next week in Bali Update #332 with a look at monthly arrivals from different source markets.

More information: Download the balidiscovery.com Arrival Report

USA Today on Bali

Leading U.S. Newspaper Looks at the Up-Side of a Bali Holiday.

The on-line edition of USA Today examines the security situation in Bali and the many holiday bargains awaiting those willing to travel to the island.

In an article by Kitty Bean Yancey, USA Today discovers that the beauty and tranquility that made Bali famous remains undiminished following the terror attack of last October with bargains galore for those prepared to ignore overly-cautious travel advisories issued by some nations.

In discussing Island security, the article quotes an Israeli-based security expert, Ted Silverman, who said Bali is "as safe as your hometown, (because) almost anyplace is as unsafe as any other in the world today."

The USA Today article also highlighted the website of Bali Discovery Tours (www.balidiscovery.com) and its weekly newsletter - Bali Update.

More information: USA Today: Vacations Are Testing Bali Waters

Chips Off the Old Block

Bali's Large Wood Carving Industry Also Affected by Business Downturn.

The Antara News Service reports that Bali's wood carvers require at least 400 cubic tons of wood each year to meet the world's demand for their products. Of that total only 40% can be supplied by timber sources on the island, with the remaining 60%, or 240 tons, shipped in from the neighboring islands of Java, Kalimantan and Sulawesi.

The wood products, carved by local craftsmen into artificial flowers, fruits, household accessories, and statues represent a major component in Bali's economy. Total carved wooden exports for the period January - November 2002 are estimated to equal US$ 75.2 million, an increase of 22% over the same period in 2001.

Tight raw material supplies experienced over the past years were aided, at least in part, by a Government regulation introduced in June of last year prohibiting the export of gelondongan wood to neighboring Malaysia. That regulation has had the effect of increasing the supply of wood available to Bali wood carvers.

The terror attack of October 12^th dramatically reduced the number of tourists visiting the island and, in turn, the purchase of hand-carved handicrafts items. That, and the cancellation of trips by handicraft buyers to Bali, are estimated to have caused sale of wooden handicrafts in November and December to drop by nearly 80%.

Profiling - Pure and Simple

New U.S. Immigration Policy Provokes a Travel Advisory for Indonesians Traveling to the United States.

Indonesia's addition by the U.S. Justice Department to the 20 countries worldwide whose male citizens will be subjected to a stringent Entry-Exit Registration System when visiting the United States has provoked its share of outrage from the Indonesian Government.

U.S. Assistant Secretary of State, James A. Kelly learned just how badly Indonesia's national pride has been wounded by the new policy during meetings on Friday, January 17, 2003, in Jakarta with Indonesian President Megawati Soekarnoputri and Foreign Affairs Minister Hassan Wirayuda. Minister Wirayuda said: "The new policy is discriminatory, arbitrary, and unacceptable for Indonesia ... it sends the wrong signal to the war against terrorism as we all know that Indonesia, and the U.S., have both been victims to acts of terrorism."

The new policy requires all Indonesian visitors to the United States over the age of 16 to report to U.S. Immigration and Naturalization authorities on a regular basis and undergo fingerprinting and photographic identification. Indonesian male nationals under the age of 16, holding a green U.S. residence card, or possessing a diplomatic passport are to be currently exempted from the special registration process.

Many observers are concerned that the policy, seen as targeted specifically at nations with large Moslem populations and launched at a time when the U.S. is preparing to wage war on Iraq, will provide ample opportunity for those wishing to portray the current U.S. war on terror as, in fact, a war on Islam.

In her talks with Assistant Secretary of State, James A. Kelly, the Indonesian President warned the senior U.S. Diplomat of the political pressure current U.S. policies place on the leadership of countries with large Moslem populations endeavoring to support the international struggle against terrorism and the backlash of anti-western sentiment such policies potentially engender.

While vowing to monitor the treatment of Indonesian nationals by the U.S. Government as a result of the new immigration policy, the Indonesian Government said it would also issue a travel advisory to its nationals advising them to consider delaying visits to the United States.

Rising Stars at Hard Rock

Bali Entertainment Hotel Announces Two Top Management Appointments.

Hotel Property Limited (HPL) the Singapore-based owning company of Bali's Hard Rock Hotel have confirmed the appointment of two senior members of their management team.

Jamal Hussain to General Manager

After an extended period as Acting General Manager of the famous beachfront entertainment hotel, Jamal Hussain has been promoted to the role of General Manager. A Malaysian national and graduate in Hotel & Tourism Management from Schloss Klesheim, in Austria, Jamal speaks 5 languages.

Prior to joining Hard Rock Hotel Jamal served as General Manager at the Palace of the Golden Horses Hotel in Malaysia and as an Executive Assistant Manager at the fabled Peninsula Hotel, Hong Kong. He has also held senior hotel positions in Taiwan, Surabaya, Jakarta, and Vienna in the course of a distinguished hotel career.

Vincent Bongsu to Top Sales Role

Hard Rock Hotel have also announced the promotion of Vincent Bongsu to the position of Director of Sales from his former post as Assistant Director of Sales.

An Indonesian national, Vincent's travel industry career began in 1992 as an auditor with a Jakarta-based travel agency before moving on to senior sales positions with Awani Dream Cruises and with an Ubud Boutique Hotel.

More information: Book A Stay at the Hard Rock

No Mercy for the Ferry

Mabua Bali-Lombok Ferry Suspends Service until April.

In another indication that visitor numbers are down dramatically in Bali, the management of the P.T. Mabua Intan Express, operators of the MV Mabua Express have announced that dwindling passenger numbers traveling between Bali and Lombok have compelled the Company to suspend services until April 04, 2003.

The suspension took effect from January 7, 2003.

The 248-passenger fast ferry water jet service operates normally on a daily basis between Bali port of Benoa and Lombok's main port of Lembar.

Communication across the Lombok Straits will still be possible during the suspension of service by Mabua, with fast ferry services available from Bounty Cruises and on almost hourly basis on public car ferries sailing from Bali's east coast port at Padang Bai.

Another Hospital for Bali?

Udayana University Said to be Actively Pursuing International Hospital Project.

Despite recent reports that the Government would forgo plans to build a new international-standard hospital and instead focus on improving the facilities of the existing Sanglah General Hospital, indications have now surfaced that Bali's Udayana University is actively pursuing plans to build a world class facility connected with the island's main school of higher learning.

A committee, operating under the supervision of Bali's Governor and representatives from the Provincial Parliament, is busily compiling plans for a medical center expected to cost Rp. 250 billion (approximately US$ 24.4 million).

Funds for the proposed hospital are expected to be secured via loans from the State's Social Security System Jamsostek with the final shareholding in the facility projected to be comprised of a 48% share for Jamsostek, 1% for the regional government in Bali, and the remaining 51% in the hands of local business groups.

More information: Related Story: Upgrade for Bali's General Hospital

Clean and Jerk

Asian Weightlifters to Meet in Bali.

The Asian Youth Weightlifting Championships will be held in Bali June 20-30, 2003.

The competition, hosted by the Indonesian Weightlifting, Power Lifting and Bodybuilding Association (PABSI), is expected to attract athletes from nearly 25 Asian nations. Open to weightlifters under the age of 20 years, the event will feature 30 classes of competition with 90 gold medals awaiting the winners.

More Restructuring of Bali Nirwana Resort Debt?

Bakrie Control at Bali Nirwana Resort Likely to be Reduced as BPPN Moves In.

According to a report in the Indonesian language Bisnis Indonesia, the Government's Committee for Financial Policy has instructed the Bank Restructuring Agency - BPPN to exercise the convertible bonds held by the Agency in connection with the Bali Nirwana Resort (BNR), the owners of Bali's Le Meridien Nirwana Resort and Spa.

Should the recommendation be accepted by the Resort's owners - The Bakrie Group and BPPN, then 90% of the ownership of the Resort would be in BPPN's hands.

The sustainable debt at BNR is estimated between US$ 20-30 million from a total indebtedness of US$ 172 million. The proposed conversion of US$ 82 million in convertible bonds would effectively surrender management control of the Resort from Bakrie to the BPPN.

BPPN has indicated that under their control they intend to try to renegotiate the management contract for the BNR with Le Meridien on more favorable terms.

It should be noted that the ongoing discussions on how best to satisfy the Resort's debts has no effect on the day-to-day operation of the popular Spa Resort.

More information: Book a Stay at Le Meridien Nirwana Resort

A Convocation of Children

Bali to Host Congress of Indonesian Children January 24-30, 2003.

Bali is the site for the 3^rd Congress of Indonesian Children scheduled to be held here January 24-30, 2003.

Seto Mulyadi, well-known children's advocate/educator and Chairman of the National Committee for the Protection of Children (Komnas PA), announced that the Children's Congress would be highlighted by dialogues between children and various government representatives, including members of the National Cabinet expected to join the Congress. A number of provincial governors from across Indonesia are also expected to participate.

The Congress will mark the first meeting of the Komnas PA since the introduction of Law No. 23 of 2002 dealing with the protection of children's rights.

Government Spends to Fight AIDS

Funds Allocated to Bali AIDS Eradication.

The State News Service, Antara, reports that the provincial government of Bali has budgeted Rp. 800 million (approximately US$ 91,000) to be used in the fiscal year 2003 to support AID/HIV eradication projects.

The figure allocated for this year represent an increase over the US$ 85,000 set aside for the same purpose in last year's budget.

According to Bali's Deputy Governor, Alit Putra, who also serves as the Chairman of Bali Committee for AIDS Eradication, 38% of the funds set aside to fight AIDS will be used for blood screening programs conducted by the Indonesian Red Cross (PMI).

Recent totals of known AIDS/HIV cases ranked Bali in 6^th place nationally in terms of known infections, following Jakarta, Papua, Riau, West Java and East Java.

More information: Related Story: Increase in HIV Rates