The Impact of a Terrorist Act to the Inbound Tourism Study Case: How Bali Bombing Affects the Tourism in Bali
The Impact of A Terrorist Act to The Inbound Tourism
Study Case: How Bali Bombing Affects the Tourism in Bali
Introduction
As the third biggest industry in Indonesia and the biggest industry in Bali, tourism is an important industry that will definitely have such a big role in the country’s economy. There was 20% of Bali’s working population which directly involved in the tourism industry. Moreover, in 2001, there were 5.1 million tourists that visited Indonesia and most of them ended up in Bali at one stage. The importance of the tourism industry in Bali was disturbed by the first Bali bombing that happened in October 12, 2002 and causing 202 casualties which triggered a dreadful impact for tourism industry. The tragedy is called as the worst terrorist act in Indonesia’s history. It also became biggest tragedy experienced by the Bali’s provincial government since Bali had a dramatic fall in terms of international visitor numbers later on.
At least 57 percent of number of tourists were decreased because the issuing of travel warning from countries such as Australia, America and also several countries in Europe. This became a huge loss for Bali since the gross regional domestic product (GRDP) in Bali is predominantly generated from tourism. Moreover, most hotels were collapsed due to the low occupancy. The negative images and growing concerns regarding safety served to undermine the tourism industry in Bali (Kalla, 2003).
The decrease in the number of tourists also had spillover effects which reducing Indonesia’s foreign exchange income that also negatively affected the Indonesia's economic recovery. After the bombing, Indonesia’s GDP in the fourth quarter of 2002 also fell sharply to 2.61 percent compared to the previous quarter. The tourism sector was also down as much as 0.9 percent. But in early 2003, GDP had grown by 2.04 percent return, including the tourism sector grew 0.47 percent.
This paper signifies the impacts regarding the first Bali bombing that
Study Case: How Bali Bombing Affects the Tourism in Bali
Introduction
As the third biggest industry in Indonesia and the biggest industry in Bali, tourism is an important industry that will definitely have such a big role in the country’s economy. There was 20% of Bali’s working population which directly involved in the tourism industry. Moreover, in 2001, there were 5.1 million tourists that visited Indonesia and most of them ended up in Bali at one stage. The importance of the tourism industry in Bali was disturbed by the first Bali bombing that happened in October 12, 2002 and causing 202 casualties which triggered a dreadful impact for tourism industry. The tragedy is called as the worst terrorist act in Indonesia’s history. It also became biggest tragedy experienced by the Bali’s provincial government since Bali had a dramatic fall in terms of international visitor numbers later on.
At least 57 percent of number of tourists were decreased because the issuing of travel warning from countries such as Australia, America and also several countries in Europe. This became a huge loss for Bali since the gross regional domestic product (GRDP) in Bali is predominantly generated from tourism. Moreover, most hotels were collapsed due to the low occupancy. The negative images and growing concerns regarding safety served to undermine the tourism industry in Bali (Kalla, 2003).
The decrease in the number of tourists also had spillover effects which reducing Indonesia’s foreign exchange income that also negatively affected the Indonesia's economic recovery. After the bombing, Indonesia’s GDP in the fourth quarter of 2002 also fell sharply to 2.61 percent compared to the previous quarter. The tourism sector was also down as much as 0.9 percent. But in early 2003, GDP had grown by 2.04 percent return, including the tourism sector grew 0.47 percent.
This paper signifies the impacts regarding the first Bali bombing that
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