The southern Bali resort area of Kuta had been undergoing a cautious revival since terrorists blew up two popular nightclubs there in October 2002, killing 202 people.
Tourism on Bali suffered in the wake of the 2002 bombings, and had only last year recovered to pre-2002 levels.
Kuta's beach is one of the most picturesque on an island known for its sublime beaches and warm tropical waters. Many Indonesians consider Kuta Beach the best place on the island to catch a spectacular view of the setting sun.
It also is a center for nightlife in southern Bali, with shops, boutiques, galleries and restaurants lining its busy streets.
Travelers there can find hotel rooms that range from the small and fairly inexpensive to the luxurious and pricey.
Kuta was a sleepy fishing village when it was first discovered by surfers and backpackers in the 1960's. Over the subsequent four decades it has been transformed into a booming ocean resort whose nightlife is very popular with locals and foreigners alike.