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Bali Discovery Tours
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia
Tel: +62 (0)361 286 283
Bali Fax: +62 (0)361 286 284
24h: +62 (0)812 3819724
BALI UPDATE #003 - 05 March 1998
CONGRATULATIONS TO THE OBEROI
Using materials supplied to them by PATA Bali, the
Oberoi Group has distributed the following statement for use by their
regional sales offices in London, Hong Kong, Sydney, New York and Delhi
over the coming months:
Bali-Indonesia Capital of Tourism
Due to Indonesia's recent massive devaluation of the
Rupiah, visitors to Bali can now enjoy unprecedented bargains in hotels,
shopping and restaurants. This has brought windfall gains to tourists
with foreign currencies visiting Indonesia. Tourists and the tourist destinations
remain very safe and far removed from isolated incidents of public unrest.
PATA Bali's Chairman, Mr. Darma Setiawan, emphasised this point when he
said "Bali continues to be calm and peaceful with our biggest problem
at present being frustrated visitors trying to figure out where to pack
all the art, handicrafts and clothing their new found wealth has permitted
them to buy while on the island.
We hope you are forwarding on our press releases and
other information to your overseas sales offices for their use.
PRESS RELEASE FROM INDONESIAN
TOURIST PROMOTION BOARD
Please copy the following press release from the Indonesia
Tourist promotion Board in Jakarta and distribute it to your affiliate
offices and international travel partners.
European Consuls Assure :
Bali Safe For Holidaying Indonesia-A Heaven for Shopping
Jakarta, 3 March 1998
Ref No PR-005/ITPB/III/98
Consuls from Germany, France and Switzerland have
assured their countrymen that Bali is safe for holidaying, In reply to
questions from the daily Bali Post, R.Jantzen, German consul for Bali
and West Nusa Tenggara, denies repots in foreign media and Television,
that Indonesia, including Bali is unsafe for travel because the country
is suffering from riots caused by the economic crisis. "If Bali is unsafe
and people do not have enough food, clothing or housing, I would certainly
have asked to be recalled" he added. "After 20 years in Bali with my wife
and family, until today I have not seen any event which may endanger my
family. I also do not see any possibility of riots happening in Bali"
he stressed. "My Family still enjoy our weekends driving safely around
the island, nor do I see any reason why I should take a holiday outside
Mr. Michel Roure, the French consul in Bali also
confirms that Bali remains a safe resort and proof of this that he is
still active in his consular duties and has not asked to be stationed
back to Paris.
While Mr. Jan P. Zurcher the consul of Switzerland
and Austria for Bali and Lombok, assures Swiss and Australians that there
is no need to cancel their holiday in Bali or Lombok. Mr. Zurcher has
sent an official statement to television stations and press in both countries
denying reports that Indonesia, Including Bali and Lombok is unsafe. At
present the Swiss Government is preparing a cultural group to participate
in the Bali Arts Festival. If Bali is not safe, he adds, then surely the
Swiss Government, would not consider sending a delegation here.
The German consul, Jantzen, its though, of the opinion
that Indonesia should be more vocal in denying the negative press reports.
Efforts by the travel Industry alone-the airlines, travel agents or hotels-is
not sufficient. "use all technological channels possible" he adds. The
Indonesian Government, The Indonesia Tourism Promotion Board, the Bali
Tourism Promotion Board, and hand in hand with the private sector should
go all out of the counter these negative press reports.
In 1998 he forecasts the 50% of Germans will spend
their holidays overseas. However, reduced direct flights to Bali with
presently more stop-overs between Germany and Bali may caused the German
market to choose a holiday Elsewhere, severe market competition is also
another factor that may reduce arrivals to Bali.
Nevertheless with the strong US dollar and the weaker
Rupiah, Indonesia has become a haven for shopping with today's very favourable
foreign exchange rates. Exchange Rates and Prices
Since August 1997, the Indonesian Rupiah has suffered
a steady decline in its exchange rate compared to the US dollar. Last
year the US dollar was equal to Rp.2.500,- today the US dollar is worth
almost four times or equal to around Rp.9.000,- with this sudden drop
in exchange, inflation has grown very fast and prices of staple goods
have spiralled beyond the reach of most the population. Additionally rice,
sugar, cooking oil, eggs and other daily necessities have suddenly disappeared
from the market as irresponsible hoarders were trying to gain large profits
from such a move.
In the wake of spiralling prices and the weaker Rupiah,
many companies, especially in the banking and the property sectors, have
had to lay off their workers causing widespread unemployment and therefore
adding to the more severe drop in total buying power. In remote villages
and towns where the scarcity of staple food was exacerbated by rapidly
declining incomes, people began to ransack grocery shops. This was, however,
quickly quenched by the authorities and the Bulog (Central Logistic Board)
quickly distributed rice, sugar and cooking oil to the villages and market
at the very reasonable prices, thus allaying more violence. Subsequently,
more well-to-do communities and companies followed this initiative and
donated staples freely to those surrounding poorer families and neighbourhoods.
In the meantime, Indonesia is facing the General Meeting
of the National Assembly held from 1-11 of March 1998 which elects and
appoints the President and the Vice President for the next five years
term. This together with the deepening recession in the country have caused
many foreigners, including several Indonesians to worry about a possible
political crisis in the country.
Today, however, as the National Assembly is in full
progress, the capital Jakarta, and the most of Indonesia, remains calm
as people go about their daily routine in the usual manner. Although of
course all eyes are on proceeding of the General assembly as well as on
the daily exchange rate. For the last week though, the Rupiah has remained
stable at around Rp. 9.000,- to the US dollar although, of course, this
is considered still unacceptable to the private sector. Most of the country
is hoping for a fast return to normalcy with a steady US dollar rate equal
to around Rp. 5000,- and the nation looks forward a new stable Government
that can steer the country out of today's protracted monetary and economic
For more Information :
Indonesia Tourism Promotion Board
Bank pacific Building 9th F1
8, Jl. Jend. Sudirman
Jakarta 10220, Indonesia
Tel : 62-21-570 4879
Fax : 62-21-570 4855
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