Denpasar – Bali is the first province in Indonesia to have carried out a comprehensive survey on the implementation of the new visa-on-arrival (VoA) policy as a quick response to government requests for the island's tourist industry to provide "real data" on the impact of the policy, which has been effective since Feb. 2004.

The survey was carried out jointly by the Bali Hotels Association, comprising 55 star-rated hotels and resorts on Bali, in cooperation with the Bali Tourism Board, five months after the enforcement of the new VoA policy.

Ten thousand questionnaires were distributed to 55 member hotels and a response rate of 21 percent was achieved, with 2,119 returned. Some 99.6 percent of respondents needed a tourist visa.

The nationalities of respondents ranged from visitors coming from Southeast Asian (ASEAN) countries to Japan, Taiwan, China, Korea, Iran, India, Saudi Arabia, Turkey, Latin America, the United States, European countries and African countries.

The survey indicates a 30 percent decrease in the arrival of foreign visitors to Bali. Around 65 percent of respondents from the Netherlands – one of Bali's major markets – felt they were inconvenienced, 33 percent thought that the visa application process was unclear and inefficient.

Around 60 percent of Japanese respondents said they felt unwelcome and only five percent felt they would return to Bali, while 95 percent would go to other holiday destinations.

Japan and Australia have been Bali's largest sources of overseas tourists for the last 10 years.

Despite the government's insistence that the visa policy benefits Indonesia in generating income from tourists, the entire tourist industry, particularly in Bali, has suffered a severe blow.

Some policies, such as the enforcement of the new VoA policy, are considered to have significantly damaged Bali's ailing tourist industry, which has not yet fully recovered from the bombing tragedy in 2002 and the SARS scare in 2003.

The policy also appears to indicate central government inconsistency in supporting the country's tourist industry. The policy restricts visa-on-arrival entry to tourists from 21 countries, down from the previous list of 60. It exempts nationals from Brunei, Malaysia, Singapore, Thailand, Vietnam, the Philippines, Macau, Hong Kong, Morocco, Peru and Chile from having to pay for a visa.

The three-day visa for US$10 and 30-day visa for $25 are issued on arrival to nationals from countries that include Australia, Argentina, Brazil, Britain, Canada, Denmark, France, Hungary, Italy, Japan, Norway, Poland, South Africa, Switzerland, Taiwan, the United Arab Emirates and the United States.

Citizens of countries not listed above must apply for visas at the Indonesian Embassies in their respective countries.

Previous surveys In a survey carried out in May 2003, prior to the visa policy's implementation, 62 percent of visitors to the island claimed they would not return if the policy went into effect, 3 percent said they were unsure and just 35 percent indicated that they would return, even if the policy was implemented.

In an online industry survey conducted by the travel industry, over 54 percent or respondents indicated that the visa fee had a direct impact on bookings to Bali, and 57 percent indicated that they were dealing with disgruntled clients following the implementation of the policy.

This survey represents the opinions of people who were in Bali and chose to come to Bali despite the implementation of the policy. Bali has been the icon of national tourism. Every year, except 2003, more than 1 million foreigners have vacationed on the island.

Due to this controversial policy, Indonesia has lost many tourism opportunities.

In Malaysia, visitors do not have to stand in a long queue in order to get an entry permit and to pay the visa fee. The airport is efficiently run, as is its infrastructure. Visitors are made to feel welcome with such excellent services.

Despite the fact that Bali's tourist industry is beginning to regain the trust of international visitors, with an increasing number of tourists coming back to the island, there is still some cause for concern. Market shifts, decreased tourist spending power and a weak position in the international airline network are among the problems identified.

In 2003, Malaysia and Thailand received 10 million visitors and Singapore 6 million, while only 4.2 million tourists arrived in Indonesia.

What is more disturbing is the decrease in revenue from tourism because visitors reduced the length of their stay in Bali.

Package tourism

In 1994, every overseas visitor spent an average of $123.66 per day, as compared to only $73.38 in 2001, and $60.95 in 2003. But, the duration of their visit dropped from 9.48 and 10.97 days in 2001, to only six days in 2003.

Data revealed by Australian tourist agencies shows a disparity in package tour prices between Bali and other destinations in Asia and the Pacific islands.

Bali tour packages for four days – staying at low-cost hotels – are priced at A$1299, excluding visa fees and other additional costs. A Fiji four-day package at a luxury beach resort costs only A$919, visa-free. A Thailand-Phuket four-day package costs $999 visa-free, Malaysia $899 visa-free.

According to the survey, the results indicate that Bali is an expensive holiday destination with a complicated, inefficient immigration system and additional costs. Security concerns have deterred visitors from Australia and other countries from coming to Bali and other places in Indonesia.

The survey suggests that the government ought to revise the visa policy. Competition within international tourism has become stiffer over the years.

The emergence of alternative destinations in neighboring countries, including Malaysia, Thailand, Vietnam and Cambodia, should be considered by those involved in Indonesian tourist agencies.

Bali's tourist industry must act immediately to create innovative packages and to improve its services to lure back visitors to the island.

It is hoped that the new tourism minister will revise the visa policy, enhance promotional activities in targeted sectors and improve infrastructure, otherwise, Bali and other places in Indonesia will soon be forgotten.

[Data analysis by Rita. A. Widiadana.]

Survey conclusions and findings

• A significant proportion of respondents encountered delays in processing their visa at the airport or the Indonesian Embassy in their country of origin.
• There was a higher level of dissatisfaction for nationals that had to apply for a visa before departing their country.
• Initial indications are that the queuing-time target of 10 minutes for visas on arrival has not been met.
• Group handling procedures at the airport have to be reviewed to ensure more efficient and speedy processing times.
• The reduction in visitors of certain markets is directly related to the difficulty within that market of obtaining a visa. Europe has registered a 30 percent decline in arrivals in 2004 in comparison with 2001.
• The recent arrival statistics indicate that the current situation is severely limiting Bali's source markets, with the average length of stay and, consequently, spending per stay reduced.
• Competitor destinations, such as Thailand, have seen an increase in visitors that corresponds with Bali's decrease.
• Key markets, such as Japan and Taiwan, are registering higher levels of dissatisfaction with the current process.
• The current Ministry of Foreign Affairs website is misleading as it makes no mention of the new visa policy and still mentions a "visa-free, short-term visit" of up to 60 days on arrival.
• The key principle of issuing free visas to nationals of reciprocating countries is acceptable; however, it is unclear as to how the decision came about to discriminate between those entitled to a visa on arrival and those that need to apply through their embassy before departure.