BALI UPDATE #402 - 24
Bali Arrivals January
- April 2004
Bali by the Numbers:
Detailed Breakdown January – April Arrivals Show
General Pick Up from 2003 But Still A Way to Go
to Equal 2001 Totals.
Number Crunchers, start your engines!
Detailed breakdowns of direct foreign arrivals
via Bali's Ngurah Rai Airport for the first four
months of 2004 are providing an increasingly clearer
picture of where Bali's tourism fortunes are headed.
Overall, A Stellar Performance
Climbing out of the depths of despair that characterized
arrivals in the first four months of 2003 following
the Bali bombing and leading up to the Iraqi invasion,
arrival figures for January-April 2004 improved
57.02%. When, however, compared to the same period
in 2001 this year's figure continue to lag by
Asia Pacific - Largely Recovered
Asia-Pacific visitors are returning to Bali in
droves, improving 82.15% in the first four months
of 2004 from the same period a year earlier. Among
the key performers in the region only Japan revealed
some hesitancy towards recovery - up 59.82% for
January-April but still 19.4% below 2001 totals.
On the other side of the coin, both Taiwan and
Australia are logging major strides forward, suggesting
those two markets may well and truly be off the
"critical patient list." Taiwanese travelers
increased 40.57% in the January-April 2004 period
with totals virtually equal to the numbers produced
in 2001. Meanwhile, Australian arrivals jumped
a staggering 158.18% as travelers from Down
Under shook off the after effects of the Bali
Bombing in totals that even managed to exceed
2001 totals for the same period by 5%.
ASEAN – Slow and Steady
ASEAN direct arrivals improved 20.82% in the first
four months of this year, recording a 94% overall
increase in visitors between 2004 and 2001. Malaysian
was the star performer in ASEAN, up 40.29% with
13,786 visitors in the first four months of 2004.
Singapore's figure dropped 11.08%, down to 11,955
– possibly reflecting the lack of special price
offers from that market present in 2003 as part
of Singapore Airline's rescue package for Bali.
The America's – Better, But Far From Good
Direct arrivals from The Americas jumped 50.41
% for January-April 2004 from just a year earlier.
U.S. citizen arrivals improved 68.26% for the
period - totaling 15.049 tourists, a figure still
41.9% behind 2001 when 25,917 yanks visited Bali
between January and April.
Europe – A Slower Path to Recovery
As a whole, European arrivals improved, but only
by 25.36% in the first four months of 2004, totaling
89.916 visitors. Compared, however, to the same
period in 2001 (136,173 visitors) European arrivals
are lagging by -33.97%.
Despite negative travel advisories the U.K. travelers
were up 32.87% year to date but were down 20,000
visitors as compared to the first four months
German travelers improved 26.05% but still not
enough to make up for the 23.56% shortfall from
the same period in 2001.
Finally, the Dutch decreased 1.05% for January-April
2004 as compared to a year before, down 26.47%
from the 12,841 who visited in the same period
balidiscovery.com has created a detailed
breakdown of arrivals for the period January -
April 2001 through 2004 - which can be downloaded
without charge at the end of this report.
A New Office for
Garuda in Tuban
Relocated Kuta Sales
Office Promises Upgraded Customer Service.
Garuda Indonesia has moved its
Kuta area sales office from the Inna Kuta
Beach Hotel to a new location at the
Kuta Paradiso Hotel in South Kuta.
The move, effective from May 16, 2004, will offer
ticketing, reservations as well as city check-in
for both international and domestic passengers.
The telephone contact for the new office is ++62-(0)361-751179.
Aviation Fuel Costing
Passenger Borne Fuel
Surcharges Seen as Having Minimal Impact on Travel
A world-wide surge in the price of crude oil to
prices in excess of US$ 40 per barrel is making
itself felt on international air travelers.
The majority of the international air carriers,
with varying amounts of fanfare, are adding fuel
surcharges to cover their increased cost of
fuel, estimated to account for anywhere between
10 to 30 percent of an airline's total operating
The major inbound carriers to Bali – among them
Singapore Airlines, Qantas, Cathay Pacific,
Garuda Indonesia and Air Paradise have
reportedly all introduced or confirmed their intention
to add fuel surcharges in the near future.
Jet-Fuel prices stand at more than US$ 48 a barrel,
an increase of over 26% from the price in late
2003 and represent a four year peak.
Despite the higher fuel costs, demand for air
passenger seats across Asia remains buoyant, with
demand up nearly 15% from a year earlier.
Government to Stop
New Domestic Carriers?
Calls for a Halt to New Start-Up Domestic Carriers.
Commission IV of the National Parliament (DPR)
have requested the Government stop issuing new
operating licenses scheduled for domestic air
Quoted in the Indonesian-language Bisnis Indonesia,
Commission IV member Maman Sulaiman said, "the
Department of Communications must stop freely
issuing new flight operating licenses and consider
the sustainability of those carriers already in
operation in order to create a healthy, competitive
At a recent meeting of the Indonesian Air Carrier
Association (INACA) in Yogyakarta, that organization
also called on the Government to curtail or cut
back on the issuance of licenses to new domestic
Unsympathetic to calls to shrink the air travel
market and commenting in a separate forum, the
Director General of Air Communications, Cucuk
Suryo Suprodjo, insisted that his office would
continue to issue operating licenses to new carriers
who fulfill the stated requirements and can demonstrate
According to Bisnis Indonesia, the Government
has issued 27 airline operating licenses, 23 of
which remain in business.
Prior to the recent deregulation of the Indonesian
domestic air carrier environment, five airlines
dominated the Country's skies. Now, with the introduction
of many new carriers, passengers are enjoying
competitive air fare levels that, in some cases,
rival the cost of trains and bus travel over the
Garuda to Convert Merpati Loans to Shares
Step Needed to Assist Cash-Strapped Carrier.
According to statements made by Garuda Indonesia's (GA) President Director, Indra Setiawan, before Commission IV of the Parliament (DPR), his airline has agreed in principle to convert loans made to Merpati Nusantara Airlines (MZ) equal to Rp. 250 billion (approximately US$ 27.8 million) into mandatory convertible bond (MCB).
Equivalent to a capital investment in the company, the conversion will increase the current 7% stake held by GA in MZ. Just how many shares GA will net from the transaction is open to final negotiation with the Government – the other shareholder in MZ.
As reported at balidiscovery.com, MZ's current balance sheet reflects negative equity with debts totaling more than Rp. 1.3 trillion (approximately US$ 144.5 million) against assets worth only US$ 88.9 million.
Approval for the restructuring of MZ's finances via the conversion of debt to equity must receive final approval from the Agency for State Owned Enterprises (BUMN).
Once approval is in hand, MZ's management will then move forward with plans to find a new investor able to inject the estimated Rp. 1 trillion (approximately US$ 111 million) needed to put the airline on a sound financial footing.
A People's Street
ASITA To Host Three
The Bali Chapter of the Association of
Indonesian Tour and Travel Agents (ASITA)
is hosting a series of three separate 'Bazaar
Murah' or 'People's Street Bazaars' to create
a fun-based activity in Bali that will contribute
to the economy of the general public.
Bazaar Murah ASITA
Each Bazaar will host some 60 booths selling both
new and used items at bargain prices. Community
members with items to sell can rent a space for
Rp. 150,000 for ASITA members and Rp. 200,000
for non-ASITA members.
The scheduled dates for the Bazaar Murah ASITA
• Sunday, June 13, 2004, from 0700 – 1600 hours.
• Sunday, September 5, 2004, from 0700 – 1600
• Sunday, December 5, 2004 from 0700 until 1600
The location of the Bazaar Murah ASITA
is in the yard of the Provincial Parliament Building
(DPRD Propinsi Bali) in Renon, Denpasar.
Registration and Details
For more information or to register for a booth
Gedung Diparda (ex. Kanwil Parpostel)
Jl. Raya Puputan No. 41, Renon – Denpasar
Contact person: Ms. Ana or Mrs. Rus
Cigars Under the
Cuban Cigars, Champagne,
7 Course Gourmet Dinner and 5 Wines at Bali's
Ritz Carlton May 28, 2004.
Back by popular demand, Ritz Carlton Bali,
Resort & Spa is presenting an evening
of gourmet dining, fine wines and hand-rolled
Cuban cigars on Friday, May 28, 2004.
Banned in America and increasingly frowned upon
in a smoker-free world, cigars aplenty
– smoked by both men and women – will take center
stage at this special event. Master cigar roller
Lazaro Cullazon Rodriguez, Head of the Rolling
Room at Cuba's Partagas Factory will be in attendance
demonstrating the arts of tobacco selection and
rolling. Guest will be encouraged to light up
and puff on a Cuban Carona and the new
Cuaba Distinguidos Cigar while sipping
Veuve Cliquot Champagne starting from 7
Aperitif completed guest will adjourn to
a 7-course gourmet dinner featuring 5 specially
selected wines with service punctuated by 3 premium
Space is limited for this special event costing
Rp. 950,000 per person including 21% tax and service
(approximately US$ 105).
Reservations and full payment must be made prior
to Wednesday, May 26, 2004.
For more information or bookings call ++62-(0)361-702222
– extension 7165.
for More Tourism Funding
Commission VI of
DPR Says More Financial Support Needed for Ministry
of Culture and Tourism.
Commission VI of the People's Consultative Assembly
(DPR-RI) have called for a major increase in the
amount of government funds made available to the
Ministry of Culture and Tourism.
Saying the 2004 budget allocation of Rp. 310 billion
(approximately US$ 34.4 million) was insufficient,
the Chairman of Commission VI, Mr. Taufikirahman
Saleh, told a recent meeting of the Ministry that
he is "asking the budget to be increased from
the 2004 level of Rp. 310 billion in order that
the Ministry can complete its duties and achieve
the targets set for it by the Government and restore
the image of national culture and tourism."
The Ministry of Culture and Tourism have set a
target of 5 million foreign visitors in 2004,
achieving 1.03 million visitors in the first quarter
of the year. Those same targets project foreign
exchange proceeds from foreign visitors will equal
US$ 5 billion.
Meanwhile, reflecting the Ministry's new focus
on supporting and promoting domestic tourism is
estimating the value of the domestic tourism business
to equal Rp. 16.97 trillion (approximately US$
1.9 billion) in 2004.
Benoa Harbor Set for Rapid Upgrade?
New Port Administrator Hints that Major Improvements Coming to Port in Bali's South.
On Friday, May 14, 2004, a reception was held at a local hotel to bid farewell to Benoa's Port Administrator (ADPEL) Mr. Pieter Nababan and welcome his successor, Drs. M. Effendy Syarif. At that gathering, suggestions were made that preparations are well underway that will soon see a rapid re-development of Bali's only port facility serving the southern sections of the Island.
According to reports in the local press, the Master Plan for the Benoa Port has been submitted by the operating authority for the port, PT Pelabuhan Indonesia (PELINDO), to the Provincial Government for its approval.
Once that approval is received and ratified by the Department of Sea Communications, Mr. Effendy says investors are in place that will make it possible to widen and deepen the current port basin, lengthen piers, and upgrade marina facilities at the port.
In the past, plans to improve the port have met opposition from local groups concerned that any development in the area will destroy the environmentally-fragile Mangrove forest that surround the port.
Tourism Seeks an Additional US$ 8 M for Promotion
Additional Funds Needed to Launch International TV Advertising Campaign.
The Ministry of Culture and Tourism is reportedly preparing a supplemental budgetary request for the current year equal to US$ 8 million.
Speaking at a tourism fair in Jakarta on May 20, 2004, and quoted in the Indonesian-language Bisnis Indonesia, Udin Saefudin, Deputy Chief of Marketing for the Ministry of Culture and Tourism, told the press that the current promotional fund of Rp. 90 billion (approximately US$ 10 million) is inadequate to undertake international tourism promotion and a successful launching of his department's new "Indonesia – Ultimate in Diversity" campaign. He indicated that discussions were underway with CNN, BBC and CNBC for media an advertising campaign on those international television channels.
Mr. Saefudin expressed some optimism that the supplementary budget allocation from the Government would be approved and the fund available in August.
The Ministry is targeting that 20% of all revenues
collected under the recently introduced visa
on arrival scheme be earmarked for tourism
Not Only For Profit
Culture and Tourism Minister Calls on Tour Operators to Put the Nation Before Profitability.
Mr. I Gede Ardika, Indonesia's Minister of Culture and Tourism, has publicly expressed his disappointment with several major national tour operators who only seek to sell overseas tour programs while neglecting to promote domestic tourism.
The Minister made his observations at the opening of a major domestic tourism exposition he opened in Jakarta on Thursday, May 20, 2004. He said that tour companies that only sold overseas programs lacked the soul to develop their own national culture and the ethical values to help develop the Nation.
The Minister, quoted in the Indonesian-language Bali Post said: "Frankly, Indonesia is rich with a wide variety of tourism objects, but these people would rather promote the attractions of another nation over those of their own country."
The Minister pointed out how recent changes in Government policy providing for a number of extended weekends had helped contribute to the estimated 145 million domestic tourists now generated every year. This factor has helped Indonesia recover quickly from the last downturn in visitors and created a new sense of nationalism and pride among Indonesians experiencing the beauty and splendor of their country for the first time.
Minister Ardika also reminded his listeners of
the huge potential for tourism to create jobs
and new businesses, pointing out that domestic
tourism also fosters greater unity and mutual
appreciation among all Indonesians.
A Memory of Images
Photographs by Gill Marais at The Ganesha Gallery June 8 – July 1, 2004.
Based in Paris, Gill Marais is a photojournalist who has published books and articles specializing in culture, travel, and medical topics - including a recent book on Tibetan medicine.
Her world journey with an ancient, but much loved Leica M6 SLR Camera has brought her to India, Pakistan, China, Tibet, Europe, her native Africa and finally Bali for her latest photographic exploration.
"A Memory of Images"
In her one-woman show of Balinese images at the Ganesha Gallery at the Four Seasons Resort at Jimbaran Bay, Gill Marais has managed to record moments and images of ritual and mysticism rarely captured on film. Photographs taken in Bali over frequent visits over a 10 year period, "A Memory of Images" will manage to mesmerize and amaze both Balinese and those who have adopted the island as home, demonstrating that there are still new facets of paradise that await inspired revelation.
Gill Marais' one-woman exhibition of photographs runs from June 8 until July 1, 2004, at the Ganesha Gallery at the Four Seasons Resort at Jimbaran Bay.
For more information call the Resort at ++62-(0)361-701010.