http://www.atimes.com/atimes/Southeast_Asia/HH09Ae01.html

Aug 9, 2006 


Australians cool on Indonesia's Bali
By Gary LaMoshi 


BALI - Another high season after another bomb attack, and another struggle to 
recover for Bali's tourism-driven economy. After the terrorist bombings that 
targeted foreign tourists in October 2002, Bali, one of Asia's premier tourist 
destinations, was on track for a record year in 2005 before October's 
explosions that killed 23 people, mostly tourists. Australian tourists had led 
the previous recovery, but this time they're leading the decline - and the 
bombs, it appears, are only part of the reason. 

Bali tourist arrivals have fallen 19.8% for the first half of 2006, from 
114,829 per month last year to 92,096 this year. For the estimated 1 million 
Balinese who rely on tourism for their livelihoods, that means everything from 
lower income from the service charges that comprise the lion's share of wages, 
to 

 

working on a one-week-on, one-week-off schedule, to selling a motorbike or even 
the family land. 

On the sunny side, this year's tourism figures top the 63,901 arrivals the year 
after the first Bali bombings, which then represented a 41% drop off from the 
previous year. But there's a dark Down Under side to this year's story. 
Australian tourist arrivals are down 57% so far in 2006, from a monthly average 
of 21,813 in 2005 to 9,466 this year. That difference accounts for more than 
half of the shortfall on Bali and has pushed Australia down to third place on 
the tropical island's arrivals chart behind Taiwan. 

The Australian shortfall is larger both in percentage terms and in raw numbers 
than witnessed after the 2002 terrorist bombings that killed 88 Australians 
among the 202 dead. Four Australians were among the 23 dead, including three 
suicide bombers, in last year's attacks. 

Cheap beer and sunburns
Ryan Van Berkmoes, who researched in June the next edition of Lonely Planet's 
guidebook to Bali, has noticed the difference. 

"Bali has suffered greatly because so much of the mass Australian market is 
gone. These aren't the people who wanted to go see a dance or indulge in the 
island's culture. They weren't coming to Bali so much because it was Bali but 
because it was comparably close to home and wouldn't cost a lot. 

"Bali [now] is damaged to such a degree that when you tell someone at the 
market or in the pub that you're going to Bali on holiday, they're likely to 
say, 'Why the hell would you go to that bloody place?' So increasingly 
Australians are getting their cheap beer and sunburns elsewhere." 

Tourism officials confirm that lower-rated one-, two- and three-star hotels are 
suffering more than luxury properties, and Kuta, the touchstone for Australian 
holidaymakers, is noticeably quieter this high season. 

"After the 2002 bombings, there was a general outpouring of goodwill from 
around the world and from Australia in particular," said Australian Rodney 
Holt, owner of five restaurants in Bali. "The goodwill from Australia that was 
present after 2002 this time seems absent. And we do not understand why." 

Bali insiders cite several reasons for the change in Australian attitude. The 
most obvious factor has been a series of high-profile drug cases involving 
Australians in Bali. The first and most famous involved beauty-school graduate 
Schapelle Corby, who was arrested after customs officials found nearly 10 
kilograms of marijuana in her boogie-board bag (see Indonesian trial for 
Australia, June 4, 2005). 

Corby, whose sister is married to a Balinese and lives on the island, arguably 
should have known that the best strategy was to keep quiet and aim to negotiate 
the charges away. Instead, the family launched an intensive media campaign in 
Australia to assert their daughter's innocence and blame Indonesia for 
discrimination against foreigners. That misplaced effort ensured that 
Indonesian prosecutors and judges threw the book at Corby, to the tune of 15 
years, later raised to 20 on appeal. 

After Corby, Australian underwear model Michelle Leslie was busted at a party 
with two Ecstasy pills in her purse. After three months of incarceration, 
including court appearances in Muslim dress - Leslie claimed to have converted 
the previous year - she got off with time served and wore a tank top for her 
release photos. More seriously, nine Australians were arrested in Bali for 
carrying heroin from elsewhere in Southeast Asia on their way to Australia. Two 
of the so-called "Bali Nine" received death sentences. 

"In Bali, people are at a loss to understand how a few cases involving tourists 
with drugs, which have been happening for as long as foreigners have been 
coming to Bali, created such headlines verging on national hysteria in 
Australia," Holt said. 

Corby's defense claimed that the drugs were placed in her unlocked luggage by 
an Australian airport smuggling operation. Leslie's lawyers claimed alternately 
that she was holding the pills for a friend and that they were an emergency 
substitute for her usual prescription dose of Ritalin. The Bali Nine arrests 
were prompted by a tip from Australian Federal Police, which sniffed out the 
scheme before the smugglers arrived in Bali. 

Pictured frames
Facts aside, there's a widespread perception that the defendants were set up by 
Indonesian authorities. 

"Ask Australians what is stopping them from coming to Bali [and they say] they 
are scared of getting drugs planted on them," Bali Hotel Association vice 
chairman Robert Kelsall said. "Bookings for the wholesalers in Australia 
started to show a severe decline back in May 2005 when the Corby issue was 
strong." 

Kelsall also chides the Australian media for stirring up negative sentiments 
toward Indonesia, focused on the drug convictions and a series of contentious 
diplomatic incidents over the past year. Canberra loudly protested the sentence 
reductions and early release in June of Abu Bakar Ba'asyir, the alleged 
spiritual leader of terror group Jemaah Islamiyah, for his alleged role in the 
planning of the 2002 Bali bombings. Australia's dissent revived ever-popular 
charges of interference in Indonesia's internal affairs. 

Amid rising violence in Papua, Indonesia's primitive easternmost province, 
Indonesian officials once again pointed fingers at Australia, where many Papuan 
separatists live and enjoy grassroots support from various rights 
organizations. That prompted a war of cartoons depicting each nation's leaders 
as canines, a particularly nasty insult to Indonesia's Muslim sensibilities. 
Australia's subsequent decision to grant political asylum to self-proclaimed 
Papuan separatists prompted the recall of Indonesia's ambassador to Canberra 
(see Diplomatic dog days ahead, April 13). 

"I don't think anyone listens to the political issues," said Kelsall, general 
manager of a five-star hotel in the heart of Kuta. "The Australian press tried 
to make an association and tried to create an issue trying to state the 
Indonesians would be angry with the Australians if they came to Bali - same as 
they tried to do during the Timor crisis." 

He contended that "on the whole, the people are not interested in politics. 
They just want to get on with their lives and get things back to normal ASAP." 

Paradise lost
The drug issue is the second-biggest reason for the decline of Australian 
visitors, said Kelsall, who chairs a Bali Hotels Association subcommittee on 
Australia that includes Bali government officials and other tourism 
stakeholders. 

The No 1 reason, he contends, was closure of Bali-based airline Air Paradise, 
which launched in 2003 and quickly became the island's unofficial flag carrier. 

"Air Paradise was the No 1 cause for a faster recovery from Australia" after 
the 2002 bombings, Kelsall explained. "Not only through their ability to add 
more capacity, but their strong marketing strategy and their ability to quickly 
adapt strategies to the changing needs of the market. They were willing to take 
risks and add capacity before they knew they would fill that additional 
capacity. Then they would try hard and market it, and they succeeded at it." 

However, Air Paradise was grounded after last year's bombs, which remain at the 
heart of Bali's current doldrums. 

"Whereas after the 2002 bombings there was a general optimism that the worst 
was over, I do not have that feeling now and feel the long-term effects of 2005 
bombings are far more difficult to predict," Holt said. 

Gary LaMoshi has worked as a broadcast producer and print writer and editor in 
the US and Asia. Longtime editor of investor rights advocate eRaider.com, he's 
also a contributor to Slate and Salon.com, and a counselor for Writing Camp. 

(Copyright 2006 Asia Times Online Ltd. All rights reserved. Please contact us 
for information on sales, syndication and republishing .)



Indonesia's fizzling terror threat (Jun 22, '06)

Bali bombs a cure for amnesia (Oct 5, '05)

[Non-text portions of this message have been removed]



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