Indonesia tourist arrivals up nearly 14 pct in May

JAKARTA, July 1 (Reuters) - The number of foreign tourists in Indonesia rose nearly 14 percent in May from a year ago, the statistics bureau said on Tuesday, helped by higher arrivals in the key resort island of Bali.

The tourism industry, which accounts for about 5 percent of gross domestic product, was hit by a string disasters in recent years including tsunamis, bomb attacks in Bali, its main tourist attraction, earthquakes, and outbreaks of bird flu.

However, tourist numbers have gone up thanks to an increasing number of visitors to the predominantly Hindu island of Bali which has recovered from a severe blow when Islamic militants launched suicide bomb attacks in 2002 and 2005. The number of foreign tourists in Indonesia rose to 508,955 in May from 447,000 a year ago. Tourist arrivals in Bali rose 23.72 percent to 167,342 from a year ago.

"There are a lot of positive things happening to us, one of them is the travel warning being lifted by the U.S.," chairman of the Indonesian Hotel Association, Yanti Sukamdani, said.

"We expect to be able to attract more foreign arrivals in the peak season of June-September to meet the 7 million target. But we also acknowledge lack of flights will be one of the problems."

The U.S. State Department lifted its travel warning for Indonesia in late May reflecting improved security, while Australia lowered travel warnings for two Indonesian provinces in late June.

The archipelago, which boasts tourist attractions ranging from rainforests to beaches, volcanoes and ancient temples, is aiming to attract 7 million foreign visitors this year.

Foreign tourist arrivals in Southeast Asia's largest economy climbed to 5.51 million in 2007 from 4.87 million in 2006, but fell short of the government's target of 6 million. (Reporting by Andreas Ismar; editing by Sugita Katyal)