The UK government still has a warning out, advising travellers
against non essemtial travel to Bali, after last October’s bombings.

However, reports from hoteliers and hostel owners in
Bali say that the back packing hostels are almost full now, and the upper
end hotels are one third full. Garuda, Indonesia’s state airline
resumed flights from the UK to Bali at the end of July 2003.