NATIONAL8 (Spotlight Weekly]

Confronting New Challenges

Kathmandu and Bali are situated in two different geographical locations on the globe but they have some economic similarities

By KESHAB POUDEL in Bali (Denpasar)

Hary Thinkabij, 26, cannot find anyone willing to rent his surfboards in the month of November, which is considered among the peak tourist seasons in Bali. As the normal crowds on the Indian Ocean beachfront are nowhere to be found this year, almost all hotels in Bali are reporting less than 30 percent tourist occupancy.

Bali beach : Where have all the tourists gone

"There are only 10 percent of the normal number of tourists we should be having right now. I have never seen such a low number of tourists in the beach area," said Hary, who making a living out of renting surfboards. "Tourism is the mainstay of our life, and the low tourist arrivals have already triggered a plunge in our income."

Tourism officials agree. "We received more than 70 percent booking cancellation in October and November," said the marketing manger of Hotel Sahid of Bali. "After the September 11 attacks, the tourist arrivals have been drastically reduced." According to the Tourist Information Center at Bali, the government expects at least a 60 percent decline of tourist arrivals in the last four months of 2001.

Although Kathmandu, too, has been swamped with cancellations, tourist arrivals are still better than in Bali. Despite the surge in internal and external violence and consequent fall in tourist arrivals, many private airline companies are eager to operate international flights.

"This is a good indication that Nepalís tourism industry will recover in the coming years," says a tourism entrepreneur in Kathmandu. "Even today, Nepal is still safe for tourist, and I believe the tourism industry will boom once again."

After Nepal and China signed an agreement on tourism, the hopes of business entrepreneurs and private investors have soared. In the aftermath of the new agreement, the Nepal Tourism Board (NTB) and other entrepreneurs have been preparing vigorous marketing campaigns to draw tourists from around the world.

"Nepal Tourism Board is trying to project internationally that Nepal is a safe venue for tourists, as no tourist has ever been attacked by terrorists," said Tek Bahadur Dangi, marketing manager of the NTB.

In the last four months, total tourist arrivals by air declined by 30 to 40 percent. "If some more private airlines are allowed to operate international flights, they will bring in additional tourists," said a private airline operator. "The government must move swiftly to grant licenses to private parties waiting to start international flights."

Because of the imposition of the state of emergency last month, the government has not issued licenses to private airlines to fly on international sectors. According to sources at the Civil Aviation Authority, the officials have already given their opinion regarding the licenses.

If the government wants to protect the tourism industry, say some tourism analysts, private parties should be allowed to operate international flights as early as possible. However, aviation experts do not agree with that argument and urge the government to evaluate the firmís overall performance and infrastructure before taking any decision on the issue.

"We need to have more private participation in the aviation sector to increase the number of tourists but the government must evaluate the performance of private airlines before taking any decision," said a leading aviation expert, on condition of anonymity.

Bali, a popular tourist destination of Indonesia, is sea-locked while Kathmandu is landlocked. But both cities are facing similar problems in tourism. After the September 11 terrorist attacks in New York and Washington, Bali's sea beach, which would normally be full of tourists this time of year, is virtually empty. Kathmandu, which enduring the fallout from international and internal terrorism, still is in a relatively better position than Bali. Despite the gloomy picture, private parties have shown an interest to invest in international aviation. At a time when tourist arrivals and the aviation business around the world are facing an uncertain future, private parties in Nepal are pressing for permission to operate international flights