Tourist arrivals, led strongly by Australians, push the destination to ‘bursting point’

Australian arrivals to Bali January-June reached 279,539, an increase of 54 per cent over the same period last year. The Australian uptrend to Bali has been very strong since end-2008, but this was the highest growth rate by far.

The industry expects the upswing to continue as seat capacity between Australia and Indonesia increases, with both governments having agreed to an additional 4,000 seats to 14,800 per week.
 

Bali Village marketing grouping vice chairman–marketing Herdy Sayoga said: “The Australian performance is proof of Bali’s successful promotional strategy applied in the last couple of years. However, tourists are concentrated in the southern part of Bali at the moment.”

Garuda Orient Holidays (GOH) Australia product manager Nick Deacock said: “Having just spent several weeks contracting in Bali, I can report the island is literally at ‘bursting point’. For most of 2010, many hotels have been averaging more than 80 per cent occupancy, and in main resort areas along Kuta/Legian beach, hotels are reporting 65 per cent or more Australian market share.

“The statistics speak for themselves – 2010 will be a record year for Bali, with Australia way out in front as the primary source market.”

However, the industry has expressed concerns over the declining comfort level due to a lack of infrastructure development to support the growth of domestic and international arrivals to Bali. One of the strategies being adopted by the industry is to attract Australian travellers to other destinations beyond Kuta/Legian.

Deacock said that he foresaw a growing shift of business to areas in Bali such as Ubud and Candi Dasa, and also to the neighbouring Lombok Island.

Royal Pita Maha, Ubud director of sales and marketing Pande Sutawan, said: “We have seen a growing number of guests in Ubud, especially after the Eat, Pray, Love film was shot here. But very few tourists come to Bali just to stay in Ubud; most go to the main tourist belt, such as Legian, Kuta and Nusa Dua, and stay in Ubud for two nights or so.”

Indonesia Tourism observer and president director of Karma Events Wiendu Nuryanti suggested the government and trade looked into tapping niche segments for upmarket travellers.

Alila Hotels & Resorts director of global sales Taufik Rachman agreed: “The number may be small compared to general tourists from Australia, but our market penetration in the last few years has shown that it is there for us to tap and grab. There is the top-end market who goes for lifestyle, spa and wellness, stay up to five nights and pay US$700 to US$800 per night.”

In response, Sayoga said: “We have now started to attract first-timers and also upmarket special interest travellers. We have also invited destinations beyond Bali to promote in Australia with us and to attract travellers to other Indonesian destinations
as domestic airline connections are improving.”

Garuda Indonesia Australia has increased promotions to destinations beyond Bali and GOH has just launched a new travel information website that has been well-received by travellers looking for information and convenient online bookings to
new destinations.

(Sources: Mimi Hudoyo, TTGAsia)