Friday, December 1, 2017

Mount Agung’s Eruption is a taking a toll on Bali’s Economy

Saturday, 2nd December 2017 11:30 AM - Christie Harris



Volcanic spewing clouds of ash has plunged one of the top tourists destinations into crisis. Bali has welcomed over almost 5 million foreign visitors in average per year, based on the statistics made in September 2017. However, due to the struggling chaos of Mount Agung’s eruption, local authorities estimate that there are as many as 15,000 tourists have already canceled their vacations to Bali over the past days. 


The eruption of Mount Agung has caused the Ngurah Rai Airport to be closed, until the time is certain for airplanes are safe to be flying again. Until then, each day Bali’s main airport is closed; there is an impact for Bali’s economy costing $18 million in loss, according to a Jakarta-based Concord Consulting. This chaotic situation is estimated to cost 60% of Bali’s economy to deplete, as most of Bali’s economy is dependent on tourism.

Meanwhile the airport is closed down, there are 12,000 tourists who couldn’t leave Bali due to the volcanic eruption causing them to overstay and an extension of their visa; some have found ways to travel to Surabata’s Juanda Airport but most of them are remained stranded in Bali. Bali’s Governor, Made Mangku Pastika immediately requested local hotels to offer discounts for the tourists to stay for additional nights.

This eruption will have a long-term effect for the Bali tourism, Keith Loveard, a Jakarta-Based Concord Consulting stated that through this eruption, “There’s a very strong chance that many would-be tourists will decide to go elsewhere in the future.” Therefore resulting the Indonesian government’s goal of attracting 20 million tourists annually by 2019 won’t be reach as Bali placed 40% of Tourism attractions in Indonesia.

Christie Harris - 00000015786
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