Last October, Bali was enjoying an unprecedented boost in visitor arrivals associated with the hosting of the Annual IMF-World Bank Event in Nusa Dua. There was a buzz in the air and a lot of talk around how successful Bali's MICE market was (is) and how much potential there was going to be.

A report published by Allied Market Research last year and reported by Lodging Magazine, claims the global MICE market "registers a compound annual growth rate (CAGR) of 7.5-percent from 2017 to 2023. Valued at USD 752-billion in 2016, the MICE industry is projected to reach USD 1,245-billion in 2023."

MICE impact on Bali's economy

Local news wires reported the IMF-World Bank event drew around 36,000 visitors and hotel occupancies in the Nusa Dua area, where the event was being held, were hitting record highs for October - between 90 to 95-percent. Gapura Bali reported on the positive impact the event would have on Bali's tourism industry.

And it did. But this year the local press is reporting that this October MICE schedules are practically empty and the tourism industry now finds itself scrabbling to make up the numbers.

Creating special moments?

Ricky Darmika, Chairperson of the Bali Hotel Association (BHA) is under no illusions that if Bali's tourism industry wants to meet its ambitious 2019 tourist targets it has to buckle down and work hard.

Bali's MICE facilities hit a high note during the IMF-World Bank Annual Meetings in October 2018. Image by Marufish on Flickr.

Putu Astawa, acting head of Bali's tourism office (Kadiparda), explained this scenario was anticipated which is why "the Great Bali Xperience (GBX)" was launched last weekend, to promote discounted low-season travel package rates from October 1 - December 15.

Governor Koster, in his remarks at the recent launch of GBX said the plan was not to make Bali cheap "but rather to create special moments." Perhaps a nod to the growing interest in the experiential travel trend and the very real potential Bali has to tap into this lucrative market.

In addition there is the Nusa Penida Festival (from October 5 - 8), a planned promotional tour from the Regency of Badung to London and a renewed focus on generating more Indian visitors.

Quality versus Quantity

Andrzej Barski from Harcourts Seven Stones and a keen tourism industry and travel trend observer feels the focus is all-wrong. He told WILLIAMS MEDIA "unfortunately, it appears Bali's tourism industry is distracted by quantity rather than quality again. There have been numerous opportunities to develop a culture of quality tourism in the last couple or three years but each time they present themselves, knees jerk and short-term, quick-fix solutions are found, which are not very sustainable. It's a frustrating cycle."

Bali's almost magical attraction has made it Indonesia's leading tourist destination and a major player in global tourism. Image by Marco Tjokro on Unsplash.

What happened to Tourism 2020?

The frustration lies in the apparent mixed messages and industry U-turns. Last November, Gapura Bali reported on an initiative called 'Tourism 2020', which emphasized quality over quantity at a time the country was targeting 20-million foreign arrivals by the end of 2019. This was later revised to 18-million in July 2019 according to Antara News.

"The key is not to just pursue quantity and reduce prices. We must improve the quality and importantly tourists will spend more," House of Representatives Commission X Member, I Putu Supadma Rudanan told members of the press on the sidelines of the 2018 Indonesia Tourism Attraction Expo and Forum (ITAEF).

Tri Hita Karana

Instead of the traditional 'price wars', which aim to increase arrivals through cheaper holiday packages, Rudana suggested a 'quality war' that would provide big benefits not only for tourists but also for local stakeholders, citing a growing global trend for sustainable tourism and Bali's award winning destination status as reasons to move toward tourism development based on the concept of Tri Hita Karana.

The Tri Hita Karana concept is based around three reasons for prosperity and well-being; 1) harmony among people, 2) harmony with nature/the environment and 3) harmony with god. It is a philosophy and tradition with significant meaning in Bali, where the concept of balance can be seen in the island's daily ceremonies and traditions.

Sources: Nusa Bali, Gapura Bali, Liputan 6, Tempo, Antara News, Lodging Magazine

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