Business News

CCTV Script 28/11/17

— This is the script of CNBC's news report for China's CCTV on November 28, Tuesday.

Tourism is the lifeblood of the Balinese economy, earning the island $7.7 billion a year. It accounts for 80 percent of its annual income. With the international airport as its main artery, the prospect of a volcano forcing its closure is a nightmare scenario.

Two major airports used to channel traffic in and out of Bali, as you can see in the screen, are Ngurah Rai International Airport and Lombok international airport.

The latter closed for one full day due to volcanic ash from Mount Agung over the weekend, while Ngurah Rai International Airport continued to remain closed until this morning. More than 400 flights to and from Bali's airport were cancelled and nearly 60,000 travelers have been stranded.

The closure will hit airlines, according to Corrine Png, CEO of Crucial Perspective. She told CNBC that Indonesia's Garuda Airlines would be the biggest loser, with each day representing $300,000 in loss revenue for the carrier.

[Corrine Png, Crucial Perspective CEO] "It is negative for Garuda because it accounts for 30% marketshare at the Bali route, and each day the Bali airport is closed, basically represents 300 thousand USD lost revenue opportunity Garuda."

Travel disruptions will ripple around the globe as the island is one of Asia's top destinations, attracting 5 million visitors a year. December through the first week of January is one of the island's busy periods. The airport's initial closure is for 24 hours until early Tuesday but there could be prolonged or repeated disruptions because the volcano may spew ash for weeks or have even bigger eruptions.

Mount Agung stirred to life again in September, prompting about 140,000 people to leave the area. Officials have estimated that concerns about an eruption over the past few months have cost the island at least $110 million in lost tourism and productivity as many locals moved to shelters.

Png said it's still early to estimate the total economic damage at this point, but it will mainly depend on how long it takes for airports to reopen and how long it takes for all businesses to be back on track.

CNBC's Qian Chen, reporting from Singapore.