BALI UPDATE #332 - 27 January 2003

Bali by the Numbers – Arrivals by Residency

A Closer Look at 1999-2002 Arrivals by Residency.

balidiscovery.com continues its examination of Bali tourism statistics by comparing arrivals by country of origin for the complete years 1999-2002.

Compiled in an easy to read graphic at balidiscovery.com, the figures show:

Australia & Asia Pacific - The entire Asia-Pacific region's direct arrivals to Bali declined 4% in 2002 when compared to the preceding year. Worst affected was Australia, which dropped 23.2%. Japan regained some ground lost in 2001 (up 1.7%), but was still down 18.8% from its 2000 levels. Taiwan ran against the trend recording a record 168,756 Bali arrivals for 2002 (up 9.2%).

Europe - European direct arrivals to Bali slid 7.9% in 2002 as compared to 2001, continuing the 4^th straight year of declining numbers. The U.K. market dropped 16.8% in 2002, while Germany followed those numbers southward, down 13.6%. The Swiss market plunged 18.5% in 2002 maintaining an avalanche pattern established over the past four years with Swiss arrivals dropping 35.8% from the 1999 numbers. The only bright spot on the European landscape was France, which increased its arrivals by a modest 1.6% in 2002.

The Americas - U.S.A. and Canadian arrival continued their four year slide, dropping 23.3% in 2002 as compared to 2001. The 2002 figures for U.S.A./Canada are 33.2% less than the 1999 totals.

Southeast Asia - Bali's near neighbors provided some relief in an otherwise dismal picture of direct tourist arrivals. The Southeast Asia region improved 26.5% in 2002, continuing the trend that has seen an 111% improvement since 1999. The star performers in the region were Singapore and Malaysia. Singapore added 47.5% more arrivals in 2002 followed by Malaysia, which increased 14.1%. The Malaysian totals, while still less than Singapore's, are developing nicely, up 140% since 1999.

More information: Download the balidiscovery.com Arrival Report

Tit for Tat

Following New U.S. Immigration Rules, Indonesia Threatens to Tighten Visa Policies.

Following a recent decision by the U.S. Immigration and Natural Services to require all Indonesian males over the age of 16 visiting the United States to undergo rigorous screening and reporting controls, Indonesia is now re-examining its options, threatening to eliminate or modify the visa-on-arrival facility currently granted to the visitors from 48 countries.

In a move headed by Indonesia's Minister of Justice and Human Rights, Yusril Ihza Mahendra has declared the matter an issue of "national dignity" in the face of the targeting of Indonesians wishing to visit the U.S..

The Minister is calling for the elimination of a visa on arrival for U.S. passport holders, a group who currently receive a stay permit for 60 days upon landing in Indonesia. Quoted in the English language Jakarta Post, Minister Yusril said, "We must take firm action against countries that treat us unfairly, so we are reviewing the visa-on-arrival facility for those countries."

Minister Yusril, even prior to the most recent change in U.S. immigration policies, has been a member of a group of senior political leaders lobbying for a curtailment on the visa-on-arrival policy in favor of visa-on-application system in combination with a revenue producing visa application fee.

ASITA Urges Caution

The Chairperson of the Indonesian Travel and Tour Association (ASITA), Mrs. Meity Robot, has urged caution in the latest call to curtail the visa-on-arrival policies.

Quoted in the Jakarta Post, Robot said, "at this difficult time after the terrorist attacks we do really need leniency in attracting foreign tourists, not making it difficult for them to visit the country."

Calling for selectivity in introducing any changes in visa policies, Robot pointed out that including nations such as Japan and Korea in any sweeping changes to the visa policy would be counterproductive as these countries have not altered their policies for Indonesian visitors. Moreover, the Government has recently intensified efforts to increase tourism flows from these countries.

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On Line Poll: Vote on Visas Change and Visa Fees

Your Chance to Be Heard on Plans to Require Visas and Charge a $50 Visa Fee.

As reported in balidiscovery.com's article "Tit for Tat", plans are afoot to remove the visa-free facility enjoyed by the citizens of 48 countries visiting Indonesia to be replaced by a visa by application system operating in combination with a proposed US$ 50 visa fee for each foreign arrival.

Our First On Line Poll

balidiscovery.com in collaboration with bali-paradise.com is offering you the chance to be heard on the proposed change by asking via an on-line poll if a visa fee of US$ 50 would significantly deter you from visiting Bali on an overseas holiday.

We'll share the results on the poll with you in next week's Bali Update and at balidiscovery.com.

To participate in the poll and monitor the on-line results visit the following link: Visa Poll.

Sneak Preview of Air Paradise's Colors

The Lively Livery of Bali's First Airline.

Making its first touchdown in Bali on Sunday, January 26, 2003, an Airbus 310-300 aircraft parked at Ngurah Rai Airport offers a sneak preview of the Bali's first international airline - Air Paradise International scheduled to commence international service on February 16, 2003.

Air Paradise International, will commence flight operations in mid-February with four flights a week to Perth and three to Melbourne. Flights between Bali and Jakarta will commence operations on March 1.

Commenting on the proud premiere of his airline's colors in Bali, Bali businessman and Chairman of the airline, Kadek Wiranatha said, "we sincerely hope that the airline will play an important role in bringing back tourists to the island thereby helping in the recovery of the island's economy."

Using Airbus A310-300's exclusively on their services, Air Paradise International has leased planes formerly owned by Singapore Airlines (SIA) and operated under a maintenance contract with SIA. Air Paradise will offer a two class configuration of 12 Paradise Class (business) and 171 economy class cabin. Full meal service will be provided, with visual and audio entertainment on board.

balidiscovery.com and Asian Escape Holidays are offering Special Fares from Australia to Bali.

Garuda Pilots' Strike Averted?

Pilot Slow Down Threatened to Start from Late January.

The association representing Garuda Indonesia's 639 pilots have issued a deadline for pay increases that, if unmet by the Carrier's senior management, they insist will result in work slow downs and an eventual close down of the airline due to a pilots' strike action.

The President of the Garuda Pilot's Association, Ari Safari, indicated that if current negotiations fail the pilots will introduce a "labor slowdown" from January 26 until February 01, that will result in flight schedule delays of at least one hour. Following that, the pilots threaten to intensify their action between February 02-09, increasing delays to 5 hours; to be followed by a complete work stoppage starting from February 10.

The pilots are reportedly demanding First Officer's monthly salaries be increased from their current average Rp. 6.4 million (approximately US$ 720) to Rp. 20.37 million (approximately US$ 2,315) and Captain's pay packets from their current Rp. 12.2 million (approximately US$ 1,387) to Rp. 47.88 million (approximately, US$ 5,440).

Accordingly to Safari, the proposed industrial action by Garuda's pilots has already received the endorsement of the International Federation of Airline Pilots, who have reportedly barred Garuda from hiring any new pilots during the course of the industrial action.

Meanwhile, Garuda's top management are calling the pilots' demands unrealistic, citing the poor financial performance of the Indonesian flag carrier. While agreeing that the pilots need and deserve higher salary benefits, the airline say they are only able to increase pilots' pay by 40% and not the 200-300% curently being demanded by the pilots' union.

Late Breaking Developments

On Saturday, January 25^th, just a day before the threatened industrial action was to commence the pilots agreed to delay any action pending mediated talks with the Airline's management scheduled for Tuesday, January 28. Indonesia's Minister of Manpower, Jacob Nuwa Wea, will act as a mediator at the talks.

The decision to forestall the industrial action by the pilots came after Garuda's management refused the pay increase requested by the pilots and promised to maintain schedules even if that required the hiring of foreign contract pilots.

Bonus Nights For PATA Conference Delegates

Delegate to PATA Conference in Bali Get Extra Night in Paradise.

Delegates attending the Pacific Asia Travel Association (PATA) 52^nd Annual Conference in Bali, April 13-17, 2003, are being offered an added incentive to attend: a bonus night at no additional charge.

Selected hotels among the official conference accommodation venues are offering Conference Delegates registered a complimentary 5^th night at no additional charge.

The hotels participating in the bonus night scheme are Sheraton Nusa Indah Resort, Bali Hilton International, Grand Hyatt Bali, Melia Bali Villas & Spa Resort, Nusa Dua Beach Hotel & Spa, and Sheraton Laguna Nusa Dua, in "Category A"; the Inna Putri Bali, Cottage & Spa, in "Category B"; and the Ramayana Resort & Spa in "Category C."

For more information and reservations, e-mail the Conference Registrar.

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Miss Universe Japan 2002 Visits Bali

Bali Rotarians Welcome Japan's First Lady of Beauty.

The Rotary Club of Bali Nusa Dua hosted Miss Mina Chiba, Miss Universe Japan 2002, to their regular luncheon meeting on January 15, 2003, at the Nusa Dua Beach Hotel & Spa.

Visiting on her first trip to Bali, Miss Chiba told the Rotarians of how impressed she was with the beauty of Bali and the kindness of its people. She also promised to bring a message back home to the people of Japan relating to them the high degree of safety and security she witnessed on the Island.

In the picture of Miss Chiba featured at balidiscovery.com, Mr. Carlos Vinas, the President of the Rotary Club of Bali Nusa Dua, is seen presenting the Club's commemorative banner to Miss Japan Universe.

More Equipment for Local Police

Bali Police Chief Receives Large Supply of Crime-Fighting Equipment.

On Tuesday, January 21, 2003, the Coordinating Minister for the People's Welfare, Jusuf Kalla, in his capacity as the Chairman of the Team for the Revitalization of National Tourism turned over the first installment of operational items worth an estimated Rp. 10 billion (approximately US$ 1.14 million) to the National Chief of Police, General Da'i Bachtiar.

The lion's share of the new equipment was earmarked for the Bali Police and received by on their behalf by Bali's Chief of Police Inspector General Budi Setyawan.

Included in Bali's list of badly needed equipment were 11 new patrol cars, one bomb squad truck, 100 motorcycles, 608 mountain bikes, 200 cell phones, 1,300 sets of patrolmen's attributes, 30 metal detectors, 6 metal detecting gateways, one call center, and one FM broadcast center.

A remaining 130 motorbikes were distributed to police stations across the country.

US$ 2.7B in Loans for Indonesia

Inter-Governmental Group Promises Funds to Get Economy Rolling Again.

The Consultative Group on Indonesia (CGI), - an inter-governmental group of nations cooperating to assist Indonesia's economic recovery, has pledged a whopping US$ 2.7 billion in loans and grants for Indonesia. Included in this amount is US$ 730 million in loans from the Japanese Government with US$ 200 million of that amount to be provided by the Japan Bank for International Cooperation.

In providing the funds the CGI emphasized the need for continuing internal reforms to improve the country's business climate as a prerequisite to future support from the CGI. The Group has called for judicial reform, tax and custom reform, enhanced security, infrastructure improvements and a more positive labor environment as all being necessary to returning the economy to health.

A Solidarity Run for Bali

Top Dollars and Top Talent for Bali 10K Run on February 2nd.

Between 10-15,000 runners are expected to gather in Sanur Beach area of Bali on the morning of Sunday, February 2, 2003, for the start of a 10 kilometer run ending in Kuta Beach.

Organized by the Department of Energy and Mineral Resources and the State Ministry for Culture and Tourism in cooperation with The Indonesian Amateur Athletic Association (PASI), the event has invited top runners from around the world to participate.

Those expected to compete shown together with their best personal times for 10 kilometers include Tegla Loroupe of Kenya (32:29.0); Elena Meyer of South Africa (32:23.0); Leah Malot of Kenya (32:34.0); John Korir of Kenya (28:24.0); Hosea Kogo of Kenya (28:29.3); and Shaun Creighton of Australia (27:31.92).

Sweetening the pie for those participating in the event are packets of generous prize money totaling US$ 10,000 for the best time among the Elite International Runners category; Rp. 15 million (approximately US$1,700) in the Elite National Runners category; Rp. 2 million (approximately US$ 227) in the Public Category; and Rp.1.5 million (approximately US$170) for the best time among student runners.

More information: The Bali 10K Solidarity Web Site

Beratha Asks Half of Japan's Tourism Aid

Bali's Governor Cites Need for $10 m from Japan to Restore Bali Tourism.

During a recent visit to Japan, Bali's Governor Dewa Made Beratha asked that 50% of a planned US$ 20 million grant promised by the Japanese Government to assist Indonesia's tourism recovery be allocated to Bali.

Traveling in Japan on a goodwill mission with Indonesia's Minister of Culture and Tourism, I Gede Ardika, Bali's Governor welcomed plans by the Japan International Cooperation Agency (JICA) to provide financial grants to Indonesian tourism including the financing of a detailed revision of Bali's Master Plan in order to give priority to culture preservation in the future development of the Island's tourism. JICA have also asked that the money be used to accommodate the needs of Japanese tourists visiting Bali.

Greater Emphasis on Security

Following the October 12^th terror attacks on a Bali nightspot, the Government has allocated Rp. 10 billion (approximately US$ 1.1 m) for improving security measures at the Island's gateways.

Meanwhile, police presence in Bali is at an all time high with a ratio of one officer to every 315 residents. This compares to a nationwide ratio of 1:1000, with both numbers comparing favorably with United Nation's recommended policing levels of 1:1000.