Bali may be one of the main targets for terrorist action in the 21st century, but that does not seem to deter luxurious businesses. Despite two bombings in the past four years, the island still attracts investors for super-luxury hotels for the rich and famous. Following the establishment of hotels like the Conrad and the Ritz-Carlton, Italy’s Bvlgari – famous for watches and jewelery, but now expanding into the luxury accommodation business – has opened a hotel in the hills of Bali’s southwest.

It is definitely a daring move, as Bali is not fully recovered from its economic slump after recent attacks aimed at foreign tourists. But Bvlgari’s chief executive believes Bali is resilient. “I believe that the bombings will hurt only for a short time, but eventually the tourism will go up again,” Francesco Trapani says, “because Bali has the history, beauty and kindness of the people.”

Following the 2002 bombing which killed more than 200 mostly Australian tourists, the 2005 suicide bombings at Kuta and Jimbaran killed 20 innocent people, including four Australians, and had a heavy impact on tourism. The number of foreign tourists arriving in Bali has dropped more than 26 per cent since last year, and for Australian tourists the decline is even worse, at 57 per cent.

But the Balinese believe the opening of exclusive hotels like Bvlgari will help restore international confidence. “Looking at Bvlgari, which has set a high standard of service and price, and they think it can be reached, I think it will bring the tourism market to a higher segmentation,” Bali tourism board executive director Wiwin Suyasa said. “It proves that Bali can achieve that target level, and adds to our pride and confidence as a main tourist destination,” Suyasa said.

It will also help reduce unemployment. “This new hotel will help absorb unemployment caused by many hotels’ lay-offs after the 2005 bombings,” Badung district vice-regent Ketut Sudikerta said.

The building of luxurious hotels in Bali also shows there is a change of market sentiment from group travel to individual travel. While group travelers choose to stay in big, international-chain hotels, the growing numbers of individual travelers prefer to try unique and private ways to enjoy their leisure.

Japanese sentiment plays a big part in shaping the tourism market in Bali, because more visitors come from Japan than from any other country. Japan is also the target market for the Bvlgari hotel.”Asia for us is a strong market. Bvlgari have a big business in Japan, and we know that Bali is a Japanese destination point,” Trapani said.

Bvlgari’s rates start at $1,300 per night and go up to $14,000. The local government supports the idea, promising total secrecy and privacy for VIP guests. “We have celebrities and important figures holidaying in Bali and so far we believe we always keep the secrecy of their presence in our area, we assure that,” vice-regent Sudikerta said. But he still will not tolerate drugs. “Drugs is an exception,” he said. “Indonesia is very tough on drugs, and has recently sentenced six young Australians to death for heroin trafficking.”

News by The Age – theage.com.au