They are still debating whether to rebuild the bombed Sari nightclub in Bali, where 200 people were killed in a terrorist attack last October 12, or to turn the ground into a garden in memory of the victims.

The area remains fenced off and locals and passing tourists offer flowers or scribble homage in remembrance of a tragedy they had never thought could happen. But six months after the incident, people want to forget the trauma and get on with their lives.

This island of some 3.4 million people has little else to depend on than tourism. Even its industry and exports are tourist-related: textiles and garments, wood products, handicraft and furniture arising from tourist demand.

Hotels, restaurants, nightclubs, resorts, souvenir shops and all the other activities that revolve around the visiting foreigners, constitute the bulk of the Balinese economy, and that economy has been badly mauled by the bombing.

Before the blast, Bali used to account for 40 per cent of Indonesia's more than $5 billion annual tourist income. An estimated 5.1 million foreign tourists visited Indonesia in 2001, and most of them ended up visiting this paradise island at some stage or other of their trips. Over 1.2 million flew directly into Bali. But that traffic has slowed almost to a trickle.

Where 5,500 people used to pour into the island daily, only about 700 did until a month ago. The Australian government has not withdrawn its warning that Bali travel is dangerous. Japan Airlines has stopped its direct flights to Denpasar.

At the Bali Hyatt Hotel in Sanur, occupancy is down to 30 per cent. Stores are either closing down or laying off people. Waiters at restaurants have little to wait on and the part of their salary that depended on tips has evaporated.

Still, there are Bali diehards who refused to leave even after the bombing because doing so would have meant letting the terrorists win. Like Meghan, an American and a friend of my daughter's from college, who, with her Indonesian boyfriend, runs a craft store in Ubud, in Bali's picturesque north. "We never thought of fleeing Bali," she said, "although we had to close down one of our outlets."

Some Ubud businesses are down as much as 80 per cent. Many of them have put their employees to work half time. But people have hope that things would be all right again. Upbeat stall-holders are selling T-shirts saying "Terrorism Won't Stop Me".

When Meghan and her boyfriend, Kadek, organised a Peace and Unity Festival in Ubud, about a month after the bombing, some 10,000 Balinese and foreigners filled a soccer field and declared their faith in the future.

After all, the bombing hasn't changed the essence of Bali. The place is still as beautiful as before, and just as serene, with its stunning beaches, picturesque rice terraces, lush tropical forests, fast-flowing rivers and volcanoes with pristine crater lakes. The beauty and tranquillity of Bali that has attracted visitors for decades remain undiminished.

And tourists have indeed started to come back. The daily average has climbed back to over 2,000. Most of them are Asians from Taiwan, South Korea and Japan. There are Europeans, too.

Young Australians, in particular, are showing renewed interest in a Bali holiday, even though as many as 89 Aussies had perished in the nightclub bombing. Some Sydney travel agencies are reporting a 50 per cent increase in travel enquiries.

Even survivors and families of those who died in the October blast want to forget that it happened. They are angry that the Australian government hasn't revoked the travel warning. "We're all trying to get over the bombing and they just keep bringing it up," said a mother whose 23-year-old daughter had died in Bali. "We won't accept that."

As if to express their faith, tourism ministers from the Asean group of nations and from China, Korea and Japan met at a mid-March retreat in Bali and promised to do their bits to support the island's tourist economy. The Indonesian government itself is going to launch an active campaign to promote Bali, and hoteliers and stores are offering juicy incentives and bargains.

Of course, getting back to the pre-October level won't be easy, and the war in Iraq poses a new uncertainty. Besides, the bombing has changed people's perception of Bali. It is no longer seen as an isolated piece of paradise but as part of a Muslim nation, and, for some, that may be a hard thing to accept.

Meanwhile, Bali store-owners are trying to cope by exploring markets abroad. But the US economy being what it is, that's not easy either. Ultimately, Bali has to get back its tourists because that's what it's about; and, fortunately, there are still people in the world who believe there are things in life more important than politics and religion.