BALI’s economy has taken a hammering over the past month, as tourists seek to avoid the threat of a Mount Agung eruption.
By JOE TAMBINI
PUBLISHED: 22:31, Mon, Oct 30, 2017 | UPDATED: 22:41, Mon, Oct 30, 2017
GETTYBali volcano update: Mount Agung has severely dented Bali's economy
Official estimates suggest uncertainty around the Bali volcano has cost the island a staggering Rp2 trillion (£112 million) since the alert was first raised on September 22.
Unsurprisingly, Bali’s tourism sector has been particularly damaged by the volcano, suffering losses of about Rp264 billion (£14million) alone.
However, it is the island’s banking industry that is expected to bear the brunt of the losses, according to Purwo Nugroho of Bali’s Disaster Mitigation Agency.
He explained that Balinese locals have lost jobs and income and will no longer be able to repay their debts, costing banks in the region of Rp1.05 trillion (£61 million).
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Bali volcano update: Mount Agung alert lowered but threat remains
Bali officials downgraded Mount Agung’s alert status to level three yesterday (October 29), after a sustained drop in seismic activity beneath the volcano - a move that will be welcomed by hotel owners on the island.
Despite the reduction, Bali’s Volcanology Centre (PVMBG) has warned that the threat of an eruption has not yet passed.
“The volcanic activities have not completely calmed down and there is still a potential for an eruption,” a spokesperson said.
An exclusion zone around the volcano has been reduced from 12km to 7.5km, allowing thousands of refugees to return home.
Mount Agung latest pictures: Volcano on brink of eruptionWed, October 25, 2017
Authorities have raised alert levels for a volcano on the Indonesian resort island of Bali after hundreds of small tremors stoked fears it could erupt for the first time in more than 50 years.
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Mount Agung volcano spews steam and smoke into the air as seen from Bangli on Indonesia's resort island of Bali on October 23, 2017
GETTYBali volcano news: People photograph Mount Agung
There are now only six villages in the danger zone - down from the previous 28.
The volcanic activities have not completely calmed down.
Kasbani of the PVMBG
The decision prompted the UK Government to update its travel advice for Britons planning on visiting Bali.
An new statement reads: “On 29 October 2017, the National Disaster Management Authority for Indonesia reduced the volcanic alert level for the Mount Agung volcano in north east Bali from the highest level, level 4 to level 3 due to a reduction in seismic activity.
“If the current level of seismic unrest continues there is still potential for an eruption.