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"Bali has proven that you can come back after a major
calamity and this
calamity of October 1 was a smaller scale blast," he said. "In terms of direct
hit to tourism, perhaps this would not be as bad as the one three years ago.
We're quietly optimistic that the Balinese will make a rebound within weeks
rather than months or years."
Any serious economic downturn in Bali would have an impact throughout
Indonesia. Tourism accounts for around five percent of the Indonesian economy,
and most tourist dollars are spent in Bali and surrounding areas.
Even before the bombings, Indonesia was taking drastic economic measures
because of high oil prices. On Saturday, domestic fuel prices more than
doubled after the government cut subsidies in order to reduce its deficit. The
Indonesian economic planning minister said Sunday that the price
hikes and the
bombings are expected to weaken economic growth. |
