Villa madness and the Bali recovery

Wednesday, October 10, 2007. 3:48pm AEST

By Samantha Stayner, ABC Melbourne

Balinese businessman Odeck runs a restaurant and small gallery in Ubud. He's seen great change in his community over recent years.

The terror attacks had a dramatic impact on tourism across all of Bali. Now he says, new challenges are arising from the economic recovery.

"After 9/11 it was a big change for us," Odeck says, "first of all losing 30 percent of our American market. Then in 2002 as we all know... losing most of our Australians. So it's been really hard for us."

Adding to the business woes, locals also faced a 150 percent rise in the cost of petrol on one day in 2005. It was October 1st, the same day bombs exploded at Kuta and Jimbaran.

Odeck is disappointed with the level of support from the Indonesian government, and says the banks showed little mercy.

"They didn't give us a break of restructuring our finances, our loans... and et cetera so some of our friends have to be forced to sell their land."

Financial recovery is a fine balance. On one hand, economic investment is much-needed. But Odeck says it also brings new challenges for locals.

"Now the business is coming back, but it's not actually done by the Balinese, because a lot of those assets are moved from Balinese owners," he says.

"While it's good the economy is going, it's not very good for some business people."

With overseas buyers paying more for land, there are also fears that locals will be priced out of the market and risk "becoming a guest in our own island".

"There is a lot of what they call 'villa madness' - a lot of Australian real estate companies building a lot of villas in Bali, and they are benefiting from this," Odeck explains.

"Bali's strength is the culture... culture coming from the sense of community. The people in Bali that produce the culture and art need land."

He agrees that tourists are returning to Bali in increasing numbers, especially over the past six months, but he also worries about the threat level reported for Indonesia on the Australian Government Smart Traveller website.

"Tourism has been good to us, we find a way to avoid conflict between tourism and our culture," he says. "But this event that's happening with terrorism and exiling the community in Bali from the rest of the world by form of travel warning is actually hurting."

"I don't think we need material support, we only need moral support, and a policy that is supporting us as a victim of terrorism... not exiling us from the rest of the world.