The flow of foreign tourists into Bali, following the October 12, 2002 bombing has dropped sharply and has caused a chain reaction on the economy of this island resort, like drops of water creating an ever-widening ripple on the waters surface.

In a publication titled Bali Beyond the Tragedy. Impact and Challenges for Tourism-Led Development, UNDP, USAID, and the World Bank describe the chain impact, as stated below:

Tourist Arrivals

Follo