Looking around in Bali, it seems as if the economic crisis never happened. New hotels are coming onto the market; classy boutiques and restaurants are opening or renovating and expanding to accommodate the growing number of tourists coming to the island; and the government is finally launching some long-discussed development projects.
“I think it’s moving pretty well in many aspects, property is growing like crazy, the food and beverage business is pretty good, the wedding industry is growing fast and tourists are coming back,” sums up Sessa Pradyan, head of MnM Innovative Concepts [ RH to check again], a local event management company busy organising fashion shows and Indian weddings with several hundred guests.
After a small blip in the first quarter of 2009, the island has been back on track with an upswing in GDP, direct foreign investment and tourist arrivals – both domestic and international.
“As the world economy faltered, Indonesia took a deep breath: it is not solely reliant on exports and it restructured its economy after the 1997 collapse [the Asian financial crisis],” says Craig Seaward, general manager of the recently opened W Retreat & Spa Bali – Seminyak, explaining the reason for the strength of the Indonesian economy, which made it possible for about four million domestic visitors to visit the island this year. “Bali kept on growing.”
At the same time, inbound tourism held up strongly. Seaward, who has worked in Bali for 13 years, says: “The low season has almost flattened out; feeder markets are very strong and Bali is a lot safer than before.”
Going Strong
In the last quarter of 2010, the island’s GDP growth was an estimated 6.5 percent, according to Bank Indonesia, pushed up by the high year-end demand for hotels, food and beverage and transportation. Tourism, which is the number-one income earner ahead of agriculture and small-scale enterprises, surpassed the year’s target of 2.3 million tourist arrivals – at 2.49 million, it contributed over one-third of the country’s total of seven million leisure visitors.
Australian travellers are coming back in droves. Perth alone has over 50 flights per week and the two-and-a-half-hour flight is shorter and cheaper than going to the Gold Coast. There are more flights from Russia and a corresponding increase in arrivals. The Chinese market is growing, there are more Taiwanese and Korean travellers, while Japan is also holding up, in spite of the flat economy in that country.
Investment is pouring into hotel developments, which make up 80 percent of all foreign investment on the island. Only a few years ago Uluwatu – on the southern side of a small peninsula some 30 minutes from the airport and close to the storied Uluwatu temple – seemed like a faraway destination compared to the centre of tourism, Kuta and Legian beaches, but it is now the centre of development, where several exclusive high-end resorts have opened or will come online later this year.
New Kids On The Island
The Edge (www.the-edgebali.com, Pecatu, Uluwatu), which threw its doors open late last year, perches right on the edge of a cliff 80 metres above the sea. The stunning three-villa estate is spread over 1.5ha of land, taking in expansive views of the Indian Ocean. Each villa has spectacular panoramas through wall-to-wall glass windows and ample space, including a sitting and dining room, and cooking facilities where your personal butler cooks breakfast to your specification. The villas have private swimming pools and a bale, where lunch or dinner can also be served. There is a large spa, communal pool and several water features creating a soothing environment. There is no menu, as the chef prepares individualised lunches and dinners after consultation with the guests. Following the immediate success of the development, the company is already planning extensions to the estate.
The 72-villa Banyan Tree Ungasan (www.banyantree.com, Ungasan, Uluwatu) joined the already crowded resort market just over a year ago but some of the pristine resort’s latest facilities have just opened. Each of the luxurious one- to three-bedroom villas perching on cliffs near Uluwatu temple has a 10-metre pool and entertainment system, including iPod docking stations, DVD players, cable TV and flat-screen television with free wifi internet throughout the property.
Nearby, two exclusive resorts are opening later this year. The Rich Prada (www.therichpradabali.com, Pekatu, Uluwatu), occupying 2.2ha of land within the Pecatu Indah Resort, offers investment opportunities for any of its 910 luxury suites looking either onto the Indian Ocean or over a challenging 18-hole golf course designed by Ronald Fream. The golf course spreads over 85ha of land and incorporates five lakes. The property is said to have the largest spa in Bali at 10,000sqm, plus a swimming pool, private beaches, four restaurants and expansive conference facilities.
Opening in June, the 74 suites, private pool villas and duplex penthouses of Anantara Uluwatu Resort and Spa (http://bali-uluwatu.anantara.com/default.aspx, Uluwatu) sit on 1.7ha of land by the picturesque Impossible Beach. The limestone cliffs, wild waves and secret caves ensure a romantic and memorable stay at the property, which offers private pools, restaurants, a bar and a gym, as well as meeting rooms, a mini-theatre and an amphitheatre.
A Growing Paradise
“Bali is really at the top,” says Jose Louis Calle, founder and managing director of Lifestyle Retreats, which this month opens the 26-room The Menjangan (www.themenjangan.com, Buleleg), a luxury resort in Barat National Park on the northwest coast of Bali. A wide range of experiences await the vacationer here, from snorkelling or horse riding to discovering the wildlife in the forest and kayaking in the mangroves. Similarly, the accommodation differs whether it is on the water’s edge, in the forest or perched on a cliff. Lifestyle Retreats also operates The Bale and The Amala, and Calle is now working on a completely new concept of modern, stylish but affordable boutique resorts which offer excellent value. The next 80- to 120-room resort will be launched in Jimbaran.
The adjoining beach area of Kuta and Legian– the epicentre of tourism, where one would think every square metre has already been built on – is expecting new additions as well. The Pullman Bali Legian (www.accorhotels.com, Legian) opened at the end of February with 351 rooms and over 550sqm of meeting space – it plans to get about 40 percent of its business through MICE events.
Philippe Battle, Pullman’s general manager, says a 160-room Mercure Harvestland will open in Kuta in the first part of this year and, soon after, will be joined by a mid-scale All Seasons. “The Kuta area is a kingdom for shoppers, and it is good for families,” he says.
Another All Seasons is opening this year in Denpasar, while an Ibis is under construction in Tuban; all are brands of the Accor chain. “Nine hotels are under negotiation, and probably four or five will be realised,” adds Battle.
W Retreat & Spa Bali – Seminyak (www.starwoodhotels.com/whotels, Seminyak) opened in March with 158 rooms and suites and 79 villas. The fresh and modern interior of the rooms is further enhanced with all mod-cons to keep guests entertained, including iPod docks, Bose CD and DVD players, 42-inch televisions, a CD library and free wifi. The units are soundproofed to ensure privacy. The spa and fitness centre covers 1,500sqm and there is a 1,792-square-metre pool. Two restaurants and a bar cater to guests’ every whim and can look after up to 180 people for meeting groups in the ballroom. The W also offers investment opportunities.
On the other side of the peninsula, in Nusa Dua, the Courtyard Bali Nusa Dua (www.marriott.com, Nusa Dua) opened last month. The 250-room hotel’s clean lines and earthy colours blend in with the beautiful garden and the central pool. The MoMo restaurant, deli counter and poolside bar cater for food and beverage requirements all day. There is a spa, a pool and a 15-minute shuttle ride takes guests to the hotel’s dedicated beach-club facilities.
Under negotiation are The Ritz-Carlton, Jumeirah and Kempinski in Nusa Dua, and The Regent and InterContinental in Sanur, on the southwestern side of the island. With this speed and volume of hotel development in the southern part of Bali, calls are increasing for the government to announce a moratorium on further developments. Problems with the electricity supply are not new, but hoteliers are also worried about possible problems with the water supply, given the huge demand for water by the pools and decorative water features. “Environmental concerns are high,” says Battlé.
Marketing through movies
Bali is My Life is a collaborative movie co-produced by the Bali Hotels Association (BHA) as part of its ongoing “Bali is My Life” destination marketing campaign.
The movie was directed by award-winning film professional Kim Kindersley, the producer of the feature documentary Whale Dreamers, which was the recipient of eight international accolades including Best Film at the Monaco International Film Festival.
Bali is My Life features many of the optimistic people and projects based on the island, working together to maintain and enhance Bali’s world-famous harmony and beauty in a sustainable way. The movie brings the voices of Bali natives together with long-time residents and the hospitality industry, to present audiences with the genuine side of the popular island destination, one that travellers to the island may not have seen before. It spreads the message of how Bali can evolve organically, and how this approach can change visitors’ entire worldviews.
This production captures the true spirit of Bali with the creativity put in by a large number of Indonesian talents such as Paulus Herry Arianto, the producer and second unit director from Art Vision Bali (AVB). AVB specialises in executing videos and documentaries for the island’s tourism industry. Another local talent is Javanese writer, editor and post-production supervisor Ernest Hariyanto, who is an established filmmaker with 13 years of experience working in the television broadcast industry.
The movie, shot in high definition, boasts spectacular visuals that capture the lush beauty of Bali, and is complemented by the vocal styling of contemporary local musicians. The BHA plans to screen the movie on flights in and out of Bali, as well as travel channels on paid and cable TV.
Rachael Ho
Island Cuisine
What is a tropical paradise without some great food? Here is a list of restaurants where you can sample some of the best fare Bali has to offer.
Sardines
With a white, beige and light-green colour scheme, wicker chairs, flowers and the green background of paddy fields, this open-sided restaurant is at once elegant and comfortable. The speciality is seafood with live lobster, crab, calamari, tuna, salmon and catch of the day prepared western style, and daily sashimi. Main dishes cost around IDR70,000 (US$7.80).
n Japan Petitenget 21, Kerobokan
Tel +62 361 738 202
Cocoon Restaurant and Beach Club
Featuring a pool and lounge seats, this bright-white, nicely decorated restaurant is airy and part open. It also has an upstairs section with a great sea view. Opened last July, it specialises in Mediterranean and Spanish dishes. Prices at lunchtime are between IDR70,000 (US$7.80) and IDR140,000 (US$15.50), while at dinner time they range from IDR130,000 (US$14.40) to IDR300,000 (US$33.25).
Jalan Double Six, No 66 Blue Ocean Boulevard, Seminyak
Tel +62 361 731 266 or 731 155
Warisan
The shopfront of an elegant gallery selling art and antiques sets the tone. This upmarket restaurant is squeaky clean with wooden armchairs and white tablecloths. Its sides open, the restaurant spreads onto the lawn in the front courtyard, and looks onto paddy fields and a banana grove. The restaurant has just opened after nine months of renovation; its space has now roughly doubled, and there is an underground parking lot for about 30 cars. It specialises in French and Italian dishes. Prices of main dishes are between IDR100,000 (US$11.10) and IDR250,000 (US$27.70).
n Jalan Raya Kerobokan, No 38,
Br Taman, Kuta
Tel +62 361 731 175
Métis
Behind its classy art gallery shopfront, this restaurant looks onto a lotus pond and a small garden. Its wooden deck has a lounge, and there is a private dining area upstairs, with a terrace and a bar. The beautifully decorated wine cellar situated in a side room can accommodate 10 to 12 people and offers a six-course degustation menu for IDR950,000 (US$105.28).
n Jalan Petitenget, No 6, Kerobokan Kelod
Tel +62 361 737 888
A Promising Future
Two big events are coming up which have provided a major incentive for the government to speed up work on long-needed infrastructure improvements.
The 19th ASEAN Summit will be held in October with about 1,000 participants, and the Asia-Pacific Economic Cooperation (APEC) Summit will be in 2013, when 2,000 delegates are expected to hit town.
According to the latest news by the local Antara news agency, work on the airport is starting this month to extend its capacity from the present 13,000 passengers a day to 70,000 per day. The work is expected to be completed in 2013, just in time for the APEC summit. Discussions are also nearing a conclusion on a six-lane flyover to connect Denpasar and Nusa Dua, also to be completed for the APEC summit. Another similar road is proposed between Denpasar
and Kuta.
The Bali Development Corporation is also building a new convention facility right opposite the existing convention centre in Nusa Dua. The large convention hall, plenary hall and meeting rooms are expected to open in May.
The government is planning ways to spread tourism development to other parts of the island. One important step will be a slow train circling around the whole island. The government is conducting a feasibility study for a site in the regency of Bulaleng to build an airport, which would open up the island’s northern part, famous for hot springs, waterfalls, and opportunities for diving, snorkelling and dolphin viewing.
