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.