Despite the poor showing by most airlines over the past two quarters, some are optimistic that targeting specific service on specific locations will lead to success. Such is the case for Bali. Over the past few years, the Indonesian island has been building up its infrastructure and increasing capacity with new hotels and resorts.



Also, because of the cheap prices to be found on some of the island's outlying beaches, tourists still consider Bali an option even in tough economic times. Airlines are seeking to take advantage of this growth by offering more flights to Bali from other destinations around the region.

Jetstar Airlines, the low-cost subsidiary of Qantas, is increasing the number of flights between Australian and Bali. This despite dropping demand on other domestic and international routes. National Indonesian carrier Garuda is increasing the number of flights from other Indonesian and regional hubs to Bali.

All this will keep airfares to Bali relatively low compared to other regional destinations and will make it an attractive holiday spot for tourists looking to take a vacation without breaking their budget.

Bali's building and infrastructure upgrades have increased its allure to demographics besides those merely interested in the beach. Bali has scored major points as a business and conference destination after it successfully hosted the World Climate Change Summit. Conference centers and upscale hotels and amenities have begun to change the island's image.

For those involved in the island's tourism industry, these are welcome changes. But for those who want Bali to keep its vibe as a laid-back beach haven, the changes are not as welcome.

Airlines are hoping that the combination of business travelers, holiday-makers and budget travelers will keep Bali from falling into the slump that has hurt so many destinations in the region. The island certainly has the framework to keep itself afloat. The question is: how bad will the economic slump get?