Bali tourist numbers down sharply after bombings

The tourist figures for Bali in October 2005 do not make happy reading. The October 1st Bali Bomb II that struck Raja’s restaurant in Kuta Square and seafood warungs in Jimbaran Bay put the brakes on the recovery from 2002. You can twist figures and try to be positive, but a 48% drop in business is not good for anyone in Bali. Businesses that are direcltly in tourism, airlines, hotels, restaurants, gift shops etc, have taken a hard hit. Also the supporting businesses will feel the instant effect. I feel sorry for local people because they were already under pressure after the petrol hikes. Ask anyone, those increases have put prices up in other goods and services.

The numbers by themselves don’t tell the whole story, for example 1 Aussie who stays at the Ritz Carlton for a month and parties everyday, does more for the economy than 10 package tourists from Korea who eat 3 meals at their budget hotel. Unfortunately the high end tourists are usually the first to leave (or not come).

This Christmas will be slim pickings for most people in tourism, but an excellent time for people who visit Bali. When the maket crashes its the best time to invest, ask any real estate guy. The tourist industry has a lot of ‘stressed inventory’ right now they need to unload. Deals will be easier to get, hotels will have more empty rooms to choose from, planes will have more elbow room, shops more likely to cut a deal. I’d say its a great time to come to Bali, the island is just as beautiful, the people just as friendly, the food just as good and the surf still pumping.