Bali’s new international terminal is
opening for service by shutting down to receive Air Force One.
President Barack Obama, China’s Xi Jinping and Russia’s
Vladimir Putin are among the heads of state due to land in the
Indonesian beach resort island this weekend for the Asia-Pacific
Economic Cooperation meeting. That’s prompted a day-time closure
of the airport for four days and some 300 flight cancellations,
two weeks after trials started on the $245 million facility.
The shutdown affects 17,000 travelers a day, who generate
more than $5 million in daily tourism business for one of Asia’s
most popular destinations. Ngurah Rai airport’s new wave-shaped
terminal symbolizes Indonesian President Susilo Bambang Yudhoyono’s drive to showcase modern facilities for the summit,
even as his government struggles to build infrastructure in
other parts of the world’s biggest archipelago.
“It’s not surprising that he’s leaving nothing to chance
with the APEC summit,” said Greg Fealy, an associate professor
at the Australian National University in Canberra.
Yudhoyono inspected the new terminal on Sept. 24, after it
opened for trial runs in time for the Miss World beauty pageant
contest in Bali last month. It will boost capacity to 16 million
international travelers a year from 7.7 million, and 9.4 million
domestic travelers from 1.5 million, according to airport
operator PT Angkasa Pura I.
Obama is due to arrive Oct. 6 for the APEC summit, which
runs Oct. 5 through Oct. 8. Ngurah Rai airport will be closed
during day time for four days, according to its website.
Storm Water
The shiny new terminal has a wave-shaped roof designed to
recycle storm water. Inside, travelers described a chaotic
immigration and baggage collection process while gardens outside
remained unfinished.
Yudhoyono also opened a toll road that cuts the time it
takes to get from the airport to Nusa Dua where the summit will
be held. Nusa Dua is already home to luxury hotels such as Hyatt
Hotels Corp. (H:US) and Westin Hotels Resorts.
“We are grateful for APEC, it’s a gift from the sky,”
Ngurah Wijaya, Chairman of Bali Tourism Board, said by phone.
“Of course there will be some impact from the closure.”
Bali attracted about 6.2 million foreign and domestic
visitors last year, generating an annual tourism revenue of
$1.87 billion, according to data from the Bali Tourism Board. In
comparison, Phuket received 4 million tourists in 2012, the
Phuket News said on its website on Sept. 4, citing Tourism
Authority of Thailand data.
PT Garuda (GIAA) Indonesia, the nation’s state airline, canceled
139 domestic and international flights for next week linking
Bali, spokesman Pujobroto said Oct. 1. AirAsia Bhd. (AIRA) scrapped 81,
Kompas reported on its website Oct. 1.
Tourist Arrivals
PT Lion Mentari Airlines scrubbed 65 percent of its flights
to Bali, the carrier said in an e-mail. Singapore-based Tiger
Airways Holdings Ltd. (TGR) lost about eight flights due to the
closure.
“It will be a loss to the local community because they are
very dependent on tourism, and there’s going to be very tight
security,” said Shukor Yusof, a Singapore-based aviation
analyst at Standard Poor’s. “I don’t think anyone would want
to be there during that time.”
Indonesia was concerned about the impact of the airport’s
closure and therefore notified airlines in advance, Tourism
Minister Mari Pangestu told Bloomberg TV Indonesia on Oct. 1.
Multiplier Effect
The event will still bring in thousands of delegates and
have a multiplier effect longer-term through the new
infrastructure and image projected to APEC nations, which
account for 54 percent of the world economy, Pangestu said.
“You’re telling the world Indonesia is a safe place,
Indonesia is capable of organizing a very important
international event,” Pangestu said. “It has a lot of very
positive and intangible impact on the country branding of
Indonesia, that you will see the benefit, not now, but in the
years to come.”
That’s no solace for Lisa Coombes, a tourist from Derby,
U.K. who arrived Sept. 20 with her 2-year-old son in Bali.
Queues were long for immigration and bags were arriving late, so
it took her more than an hour to get out of the airport.
“It was really chaotic and the last thing we needed when
you have a very cranky child,” said Coombes, 32. “I’ve not
heard of APEC, but I see the banners everywhere. It’s good that
we won’t be here when it starts.”
To contact the reporters on this story:
Berni Moestafa in Jakarta at
bmoestafa@bloomberg.net;
Harry Suhartono in Jakarta at
hsuhartono@bloomberg.net
To contact the editor responsible for this story:
Anand Krishnamoorthy at
anandk@bloomberg.net
Bali"s New Airport Shuts as Air Force One Hosted: Southeast Asia
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