BALI UPDATE #335 - 17 February 2003

Bali Operators Well Represented at AIME 2003

At Least 12 Bali Tourism Companies Participating at Melbourne Conference and Meeting Show.

AIME - the AsiaPacific Incentives and Meetings Expo to be held at the Melbourne Exhibition and Conference Center in Victoria, Australia, is a major event on the international schedule for shows dedicated to produce face-to-face meetings with a large number of local, national and international buyers of meetings, incentives, conference and exhibition products.

First staged in 1993, AIME has consolidated its reputation as one of the world's top events for the meetings and incentives industry. AIME is the Asia Pacific region's most significant and influential event for this industry.

In 2003 some 598 companies exhibited and 2,464 visitors attended.

Bali Well Represented at AIME 2003

A contingent of no less than 12 Balinese suppliers of travel will be attending AIME 2003 on February 18-19, presenting their products and services to speed the recovery of the Bali tourism industry.

Among those companies scheduled to attend are:

Bali Discovery Tours
Bali Dynasty Resort
Bali Hai Resort and Spa
Bali Inter-Continental Resort
Bali World Travel
Batravco
Discovery Kartika Plaza
Hilton International
Le Meridien Nirwana Golf Resort and Spa
Lila Tours
Raddin Hotel and Suites - Bali
Sobek + M&M Catering

Participants attending the AIME 2003 exhibition are encouraged to make contact with any of the above listed companies representing the world's best tropical destination - Bali.

Oz to Bali at Bargain Prices

More Unbeatable Offers From Asia Escape to Bali.

Australian travel wholesaler Asia Escape have announced exciting new flight and accommodation packages from Perth to Australia using Bali's new airline Air Paradise International and Garuda Indonesia.

Perth, Western Australian travelers can visit Bali for as little as AU$ 725 for a four nights stay - based on twin sharing and including flights on Air Paradise, accommodation for 4 nights including breakfast, and Australian departure taxes. Packages must be purchased before February 24, 2003 and are valid for travel through June 30.

Visit the Asia Escape Bali Specials Link for a complete range of travel options.

More information: Bali Travel Bargains with Asia Escape

Riana Takes Flight

Riana Bismarak Joins Air Paradise Team.

D. Riana Bismarak the former Director of Sales for the BaliHai Resort and Spa who resigned that post in December 2002, has joined Bali's first airline - Air Paradise International.

Effective February 1, 2003, the well known and popular Riana has assumed the role of Marketing & Sales Manager Indonesia for the bold start-up carrier owned by a Balinese business man, Mr. Kadek Wiranatha.

More information: Send Riana an Email

Nick Faldo Wins Bali Golf Invitational

Faldo Tops Group of World's Best Golfers at Nirwana Event.

World champion golfer Nick Faldo declared Bali "a beautiful place with nice, genuine people," after winning the Bali Invitational Tournament with a six under par 66 at the Le Meridien Nirwana Golf & Spa Resort Bali, February 8-9, 2003.

Faldo outperformed Australia's best golfer Robert Allenby by 3 strokes who turned in a 3 under par 69; South African Ernie Els carded a 2 under par 70; followed by 22 year-old Justin Rose who made par at 72.

The two-day event at Le Meridien Nirwana Golf & Spa Resort Bali included a golfing clinic and a pro-am "Texas Scramble" that saw Indonesia's top amateur golfers compete in an 18-hole shoot-out with the top international golfers visiting Bali for the tournament.

Indonesia's President Megawati Soekarnoputri was on hand for the final day of the tournament when she presented the winners with combined prizes totaling US$ 100,000, she thanked the players for traveling to Bali and demonstrating to the world that Bali remains a premier international tourism destination. The winners of the prize money graciously relinquished their prize money, insisting it be turned over to local Bali charities.

Allenby, on his first visit to Bali, said he had heard so much about the island over the years. He added, "I'm here to show Australia that Bali is still a safe and beautiful place to come. This is the 'back garden' for Australia and where a lot of Australians have come for a long time." Allenby, who had friends in the unfortunate events of October said, "no place in the world is safe today. There could be a bomb anywhere, in America or Australia."

Eels, also on his first Bali visit and traveling with his family, concurred, saying, "Everything moves on in life. I have many friends in South Africa who want to come here, and after the bombs they have been concerned. We are here to support Bali tourism on an island that obviously needs tourism to perform. We've had a great time here and played a little golf. The course is a great design and it's a great resort here." He went on to say, "Bali is absolutely beautiful and the hotel is fantastic, so quiet and peaceful. I'll be back soon!"

Rose, who at 22 is one of the younger players on the professional tour, found it a treat to "come and relax in beautiful surroundings." Traveling to Bali with his mother, Rose said, "this is the first opportunity I've had to visit Bali and it was an opportunity I really wanted to take."

The Bali Golf Invitational event was initiated by the Ministry of State-Owned Enterprises working in collaboration with Chinkara Capital Limited of Singapore, and organized by the International Marketing Group (IMG).

More information: Book a Stay at Le Meridien Golf and Spa Resort

Bali Hoteliers Contribute to Spirit of Hope

Rp. 100 Million Handed to Local Rotary Club for Charitable Works.

Casa Grande, an association comprised of the General Managers from Bali's starred hotels, have handed over a check for Rp. 100 million (approximately US$ 11,250) to the Rotary Club Bali Nusa Dua.

The money will form a part of the Rotary Club Bali Nusa Dua's Bali – Spirit of Hope relief fund dedicated to assisting the victims of the October 12^th bombing tragedy.

In the photograph Mr. Carlos Vinas (right), the President of the Rotary Club Bali Nusa Dua is seen receiving the donation from Casa Grande's Chairman, Mr. Christopher Maclean (left).

More information: Rotary Club Bali Nusa Dua's Website

Finally, Garuda and Pilots Come to Terms

Strike Threat Ends as Pilots and Management Agree on Wages.

The threat of a system-wide strike by Garuda Indonesia's pilots against the airline has apparently come to an end.

At a press conference held on Friday, February 14, 2003, the agreed terms of pay increases for the airline's flying employees were announced by Ferdinand Nainggolan, the Deputy for Logistics and Tourism in the Ministry for State-Owned Enterprises. At the press conference, Nainggolan announced that he had been authorized by the Government to order Garuda's management to immediately implement the new pay rates. He also advised that the Government would soon be appointing a consultant, sometime in June or July of this year, to advise the Airline and the Government on a system for future wage structures at Garuda.

New Wage Structures

Under the approved wage structure, cockpit crew wages will increase 35% with pilots, depending on seniority and aircraft, now earning between Rp. 13.4 to Rp. 24 million per month (approximately US$ $1,505 to US$ 2,700). Co-pilots sitting in the right hand seat will earn between Rp. 6.7 to Rp. 11.6 million per month (approximately US$ 750 to US$ 1,300).

The same wage agreement announced at the press conference also provides for a 25% increase in wages for flight crews working in the passenger cabin.

Wage Increase Burdensome for Carrier

In announcing the wage increases, Nainggolan reminded the airline's employees that in current conditions where Garuda is unable to pay a dividend to the Government as its owners, the wage increases represent a real burden to the Company's balance sheet. Garuda continues to hemorrhage financially as it services a restructured US$ 900 million debt burden and is not expected to yield a dividend for at least 10 years to come.

Garuda Indonesia operates 54 aircraft flying to 21 domestic destinations and 25 international destinations. The Company currently employs 8,000 workers.

Australian Tour Bosses Meet in Bali this June

CATO Personally Expresses its Support for Bali's Recovery.

The Council of Australian Tour Operators' (CATO) decision to hold its inaugural annual conference in Bali is a landmark in cooperation between a tourist destination and one of its major market sources.

The conference is a direct result of a visit to Bali last November by Peter Baily, CATO chairman, and his vice-chairman Michael Hay, both of whom came away deeply impressed by the efforts made by Balinese tour operators to help their wholesaler partners in Australia resurrect Bali as the favorite holiday destination for Australians.

Baily said that the way his various hosts in Bali had presented their vision for recovery had prompted both himself and Michael Hay to think beyond the problems of Bali to see what could be learned in Bali to the advantage of all wholesalers, in fact, the entire Australian travel industry.

Thus, Baily and Hay have arranged for top speakers to convene in Bali to present papers at the conference at Nusa Dua , June 6-8.

CATO currently has a membership of about 70 companies made up of almost 60 full members who are active wholesale tour operators and about a dozen Associate Members - a new category introduced just a couple of months ago to involve organizations who provide goods and services to tour operators.

The esteem in which the CATO is now held is illustrated by the readiness with which influential members of the travel industry and others have agreed to participate in the Bali conference, which is designed to be a study of crisis management for the travel industry.

Peter Baily says that the main presentation at the three-day conference, entitled "Lessons Learnt", will be delivered by Dr. David Beirman, the Director of the Israel Government Tourist Office in Australia, who has vast experience handling the problems of Israel during the last couple of decades.

Dr. Beirman will be backed by a range of speakers highly skilled in the areas of travel insurance, Government travel advisories, legal challenges and other matters facing the industry.

A widely recognized expert in his area, Dr. Beirman is the author of a book on the strategic marketing approaches required to restore tourism to destinations in crisis.

Bali Bombing Trial Dates Drawing Near

Police Promise Files to Prosecutor During Week of Feb 16.

Police have publicly promised to complete and submit to Bali prosecutors the complete files for the 14 suspects charged with October 12^th bombing of two Kuta nightspots.

Once the complete evidence files are in the hands of prosecutors the trials could conceivably be scheduled to commence within several weeks.

Of the 14 now awaiting trial in Bali, Ali Ghufron and Iman Samudra are facing the prospect of life imprisonment or execution should they be declared guilty. The remaining 12 defendants are liable to punishments of between four and twenty years.

balidiscovery.com and Radisson Bali Hotel in Sanur will be operating a special trial center to support the national and international media expected to come to Bali to cover the legal proceedings.

More information: Bali Bombing Trials - Press Support Center

Bamboo and Rattan Exports Increase

Growing Demand for Home Grown Handicrafts.

The Bali Department of Business and Industry reports that foreign exchange earned from the export of handicrafts woven from rattan and bamboo increased 40% in 2002. Total exports, according to Mr. I Gde Mendera, the Chief of the Department of Business and Industry for Bali said the value of total exports reached US$ 7.7 million in 2002.

Strong demand - particularly from the U.S., Japanese, and Australian markets for small household accessories and fashion items made from rattan has helped to absorb some of the high levels of unemployment currently occurring on the island.

Many of Bali's rattan products are produced in the Kintamani area and later sold in shops in Ubud.

PATA and INCCA PCO Debate Deepens

Promotion Board's Setyanto Replies to Criticism from INCCA Concerning April PATA Conference.

The polemic in the local press continues to deepen between Iqbal Alan Abdullah, the Chairman of the Indonesian Congress & Convention Association (INCCA), and Setyanto P. Santosa, Chairman of the Indonesian Culture and Tourism Promotion Board (BP Budpar) over the lack of a role for a local Professional Conference Organizer (PCO) in the planning and preparations for the 52^nd Pacific Asia Travel Association (PATA) Conference to be held in Bali, April 13-17, 2003.

INCCA's public criticism against the Government's failure to appoint a local PCO carried in Bali Update #334, evoked a response from Mr. Steyanto printed in the Indonesian-language Bisnis Indonesia February 11^th edition, in which he confirmed that the Conference did not involve the services of a local PCO, as that job function was handled directly by PATA's Bangkok Head Office. He went on to explain that policy decisions by PATA precluded the appointment of a local PCO.

PATA Comments

balidiscovery.com contacted Mr. Peter Semone, PATA's Vice-President based in Bangkok, who lent support to Mr. Steyanto's statements by commenting, "all PCO functions relating to the conference management, such as registration, booking of function rooms, catering, set-up of rooms and a/v, hotel bookings, badges, collateral, speakers, and travel arrangements for speakers and VIPs is done by PATA. PATA only requires the Indonesia Host and Organizing committees to assist with ground support."

According to Mr. Semone those items falling below the definition of "ground support" include logistics, arrival/departure and shuttle transportation, reconfirmation of air tickets, pre and post tours, spouse programs, sports activities and organization of the welcome dinner.

Mr. Semone added, "the DMC (editor: Destination Management Company) functions that are asked of the Host and Organizing Committees have always been fulfilled by the cooperative efforts of the local PATA Chapter and Tourism Board/Ministry. There has never been the need to hire another party to fulfill any of these functions. The PATA spirit of volunteerism has prevailed in providing the foundation of successful PATA conferences."

More information: Related Story: INCCA Protests PATA Conference Mana

Candles in the Wind

Britain Mourns the Victims of the October 12 Bombing.

An estimated 800 people gathered on Wednesday, February 12, 2003, at Southwark Cathedral in Central London for a special memorial service to honor the 26 U.K. subjects who lost their lives in the Bali bombing of October 12^th.

The eight centuries old Anglican church, located not far from London's famed Thames River, was decorated with Balinese decorative accents and floral arrangements made from Balinese orchids flown in especially for the ceremony. A Balinese gamelan orchestra provided incidental music for worshippers who were led by Prince Charles, Australian Prime Minister John Howard, British Foreign Minister Jack Straw and British Secretary for the Interior David Blunkett.

Candles in the Wind

26 candles commemorating the lives of the 26 U.K. subjects who perished in the international terror bombing of a Bali nightspot were lit during the ceremony which was held on the day marking the four month anniversary of the attack. In all, some 192 people died in the outrage, including 88 Australians.

Bishop Richard Harris of Oxford led the service, telling those who attended how the events of October 12^th in Bali reminded the world of the tragedy always surrounding us in our daily lives. He went on to say that while terrorism always ignores humanitarianism, it is precisely with humanitarianism, intelligence, and the prudent use of force that the world will manage to eventually defeat the scourge of terror.

Austrian Airlines' Group Bids Bali Auf Wiedersehen

Austrian Airlines Closes its Bali Office.

Describing it as a "hard and difficult decision to take" Austrian Airlines have decided to close their representative office in Bali, effective February 28, 2003.

After that date all ticketing and reservations functions for the airline will move to its General Sales Agent's Office, PT Wabiru Adikarsa at Plaza Kebon Sirih in Jakarta. Telephone ++62-(0)21-3929953-54, Facsimile ++62-(0)21-39299948, e-mail stephan.hidajat@aviationindonesia.com.

The move to close the office in Bali would appear to signal that the Austrian Airlines subsidiary Lauda Air has no immediate plans to resume service to Bali. The Austrian Airlines Group represents three carriers, Austrian Airlines, Lauda Air, and Tyrolean Air.