Operators Feel the Pinch of Global Crisis

December 13th, 2008

Aquatic recreation businesses on the island are feeling the pinch of the global financial crisis, an executive disclosed Thursday. “After three years of continuous growth, the water leisure operators now face a possible contraction of their business,” said Yos K Amerta, the head of the Bali chapter of the Indonesia Maritime Tourism Association (Gahawisri).

During an association gathering this week, Amerta said, several operators had reported cancellations by foreign clients. Most of the cancellations were of activities packages booked for next year. “Nearly every available water leisure package has had its share of cancellations, including fishing, rafting and diving,” he said.

Visitors from Europe, Russia, Japan and the U.S., Amerta said, were the main clients of the island’s aquatic recreation operators. “Unfortunately, the ongoing global financial crisis has significantly affected those regions,” he said, adding that a large number of operators had reported cancellations. “We have yet to compile the actual number. The cancellations for booked packages for this year are smaller than the ones for next year,” he said.

He said the November to December period, which brought with it the rainy season, typically constituted the low season for aquatic recreational activities. “Honestly, my colleagues and I are very worried about the number of clients we will receive next year,” he said. If the number of cancellations continues to increase, Amerta said, operators would begin having to shut down their business.

Gahawisri has 142 registered members, but only 70 percent of those are currently operating. The remaining businesses under the organization failed during economic contractions resulting from the 2002 and 2005. “More will have to shut down their operations if the ongoing crisis turns into a prolonged one,” Amerta said. Budi Prabowo, an employee of Bali International Rafting in Telaga Waja, Karangasem, voiced a different sentiment.

“Rafting’s primary markets are Japanese and Korean visitors and so far the numbers are still good,” he said, citing that his facility received an average of 70 visitors per day. “If the number of foreign visitors decreases, the number of domestic visitors will offset the decrease,” he said. Amerta said the clients of the businesses could be put into two classes: Upper and lower. The upper class, he said, spent more money and purchased more expensive packages.

He said the upper class comprised visitors from Europe, Japan, the United States and Russia. “American and Russian visitors generally love cruises and fishing packages while the Japanese ones usually purchase diving, snorkeling and rafting packages,” he said. The lower class largely consists of Taiwanese and Korean visitors, he continued, stating that their activities of choice were typically parasailing and riding on banana boats.

Written by Wasti Atmodjo, featured by The Jakarta Post -  thejakartapost.com

This entry was posted on Saturday, December 13th, 2008 at 11:27 am and is filed under Tourism. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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