Tourists from the region are returning, but those from further afield are still wary Nyoman Widiadana good-naturedly haggles over the price of a kite with Australian tourists in his store on Bali's main tourist strip, just metres from the site of the October 2002 bombing that killed 202 people. 'In the first year after the bombing, Bali was very quiet,' he said after settling the transaction. 'Now, we are still not as busy as before the bomb, but the situation is improving and I am optimistic.' Foreign tourist arrivals into Bali fell by almost a quarter last year to less than one million, their lowest level in a decade as fears of further terrorist attacks were compounded by global panic over the war in Iraq and the scare over Sars. While persistent travel warnings on Indonesia and a new visa policy continue to weigh on Bali's future, observers are quietly confident tourism numbers are finally approaching pre-bombing levels. In January and February, total arrivals at Bali airport were up 56 and 25 per cent respectively from a year ago. The government has forecast a 9 per cent month-on-month rise for March. 'Bali's tourism numbers are recovering and we anticipate they will return to pre-bombing levels next year,' said Robert Kelsall, chairman of the Bali Hotels Association, which groups 55 properties. The growth has been driven by support from Australia and Asia. European and US tourists are still generally discouraged by their governments' travel warnings. 'No one wants to talk about marketing and promotional efforts to North America or Western Europe, they see them as a lost cause because of the travel warnings,' said Bali Tourism Board spokesman Darin Storkson. 'Businesses are focusing on up and coming markets like China, Singapore and South Korea, where people feel more comfortable about exotic destinations like Bali.' Pauline Loftus-Hills, an Australian expatriate based in Singapore with her partner, spent five nights in Bali this month and said she never felt threatened. 'We are used to heightened security around Southeast Asia and it was no different in Bali,' she said. Her visit was also an emotional one; a good friend was killed in the bombing. Another traveller, Ron Wilson, 34, of San Diego, defied US government advice and came to Bali for the first time in four years. 'I do look over my shoulder a bit more now and I'm in no hurry to tell people I'm an American. If asked, I claim I'm Canadian,' he said while buying souvenirs at the markets. 'But it [a terrorist attack] could happen anywhere and you can't hide in your house like Chicken Little, thinking the sky is falling in.' Mr Kelsall, who runs the Bali Dynasty Resort in the main tourist area, Kuta, gets most of his bookings from Australia and projects occupancy will rise to 80 per cent in the peak tourist period from June to September, compared to 55 per cent now. 'It's like somebody turned the tap on. Australians wouldn't come last year but suddenly they started coming back and now the biggest threat is airline availability,' he said.
