Ni Komang Erviani, Denpasar – The Bali Investment Board has recorded a 99 percent drop in investment plans on the island in the first quarter this year.
In the first quarter of 2008, investment plans were valued at Rp 6.3 trillion, while in the same period this year the value of investment plans fell to Rp 53.5 billion or US$4.73 million.
Nyoman Suwirya Patra, head of the Bali Investment Board, told reporters Tuesday the drop in investment plans was due to the current global financial crisis.
"We recorded only 15 foreign investment plans valued about at Rp 53.5 billion in January, mostly in the textile industry, construction, trade and tourism-related busi-nesses," he said. Suwirya added there had been no domestic investment in Bali during February and March.
Around 57 percent of planned investment projects in the country are located in Badung, Buleleng and Gianyar regencies, and Denpasar municipality.
In 2009, the Bali provincial administration set an ambitious target of investment worth Rp 10.3 trillion despite the global crisis. "I am afraid we cannot achieve the target," Suwirya said.
He said he was pessimistic Bali could achieve the 2009 target because his office had also recorded unhealthy investment figures in 2008. In 2008, Bali set investment targets of Rp 11.2 trillion, but only 7.5 percent of this target was reached.
However, the head of the Badung Tourism Agency, Gede Subhawa, said he felt optimistic about the strength of the tourism industry in the region.
Badung is the richest regency in Bali, housing the island's top tourist destinations such as Nusa Dua, Kuta, Jimbaran, Seminyak and Legian. Subhawa said the average hotel occupancy rates in Badung remained at 50 to 60 percent, quite high considering the low holiday season.
"The financial crisis will not be as severe as the post-bombing period," Subhawa said.
Bali tourism industry suffered terrorist bomb attacks in October 2002 and October 2005. Hotels' occupancy rates hovered at between 10 and 30 percent as tourists prefered other destinations.
Following the attacks, the number of tourists dropped drastically with average hotel occupancy rates reaching only 10 to 30 percent of capacity.
Rainata Tjoa, marketing communications director of the Westin Hotel and Resort, admitted there had been a slight drop in reservations and corporate meetings. "But the number is not too significant," she said.
The Westin Hotel is currently hosting an international meeting on human trafficking.
Sugeng Purnomo, director of communications at the Laguna Resort in Nusa Dua, was also optimistic, saying the resort's occupancy rates at 50 to 70 percent were stable.