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Bali wants more in tourism revenue

6:38 8 April 2009

Ni Komang ErvianiThe Jakarta Post ,  Denpasar   |  Wed, 04/08/2009 3:48 PM  |  Bali

Bali Governor Made Mangku Pastika has urged the central government to allocate the province a larger portion of the national tourism revenue since it contributed more than 30 percent of the total income.

“We don’t have natural resources. Tourism is the island’s major source of income,” Pastika said.

In 2008, the national tourism income achieved revenues of around Rp 80 trillion (US$7.1 billion), an increase of 16 percent from 2007. The government is projecting a modest 1 to 2 percent expansion of the Indonesian tourism economy in 2009, due to the global financial crisis.

According to the Culture and Tourism Ministry, the tourism-generated income was driven by 6.45 million foreigners visiting the country, with each spending up to $1178 per day last year.

Pastika said Bali received only Rp 556.9 billion, which the government said was insufficient to finance various development programs in the province.

About 1.9 million tourists visited Bali in 2008 spending an average of of $1,000 per visit.

“This *revenue* excludes the income from visa on arrival fees,” Pastika said. He added Bali generated around $2 billion to $3 billion a year from its tourism and hospitality industry.

Bali is also well-known as one of the country’s major producers of handicrafts, garments and wooden furniture.

Despite robust tourism and handicraft exports, Bali is facing serious poverty.

Bali’s population agency recorded that 215,700 out of the total 3.5 million inhabitants are still living below the poverty line. Per capita income in Bali only reaches Rp 12 million ($1,200).

“There is still a wide wealth disparity among regencies. The tourism industry flourishes only in the southern part of Bali, leaving other regencies underdeveloped,” the governor said.

Although Bali has been declared one of the world’s most famous tourist destinations, the province has to work hard to upgrade its decaying infrastructure and other supporting facilities.

Suzetta promised to voice the Balinese aspirations to the central government.

“However, Bali has to restructure its development programs.”

The rapid development of hotels, villas, and shop houses, locally known as ruko, have threatened the island’s environment.

“Most development projects in Bali were not in line with master plans,” he said.

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