Bali is one of Indonesia's wealthiest regions. Agriculture used to be the fertile island's biggest earner, but while more people are still employed by farming, tourism has long since overtaken it as the largest single industry.

The bombings in 2002 and 2005, targeting Western tourists, took a big toll on Bali's earning power. The local economy was devastated as tourists left the place for dust. But slowly, Bali has picked itself up again and rebuilt. So is it back on its feet now or still suffering from a reputation as a terrorist hotspot?

New Zealand's Ministry of Foreign Affairs and Trade still views Bali (and all of Indonesia) as a high-risk destination and advises against all travel. Australia's government also warns against travelling there - but the US and some other nations have lifted their warnings and the travellers are flooding back.

During my trip to Bali it was obvious that tourist operators have moved to safeguard their most precious commodity. On arrival at the resort area of Nusa Dua, the teeming streets give way to wide avenues and manicured gardens. But no one ever seems to walk around the giant statues, bridges and water features. If tourists leave the resort they tend to take a taxi or hire a driver, rather than wander around willy-nilly.

Security going into the resorts is tight. All traffic passes through a security checkpoint where cars stop over a platform with cameras so the underside can be monitored, while their boots are checked by a guard.

Again at the gates to Club Med, the undersides of all vehicles are checked with mirrors on poles. Guests are advised to sign in and out of the resort and have taxis ordered for them at reception - this means if anything should happen and they go missing, the resort at least knows their first port of call.

Guests staying in Nusa Dua's upscale resorts could be forgiven for forgetting about economic woes. (Recession? What recession? Yes, another round of cocktails please, waiter.) But as soon as you set foot outside it's evident that many are struggling.

The resort next to Club Med has closed down. Corrugated iron surrounds its empty buildings and its beachfront is empty save for a few local fisherman and groups of women touting their massage services.

Further afield are Kuta and Legian: long strips of surf shops, brothels, nightclubs, bars and restaurants. Interspersed among these is a relentless series of souvenir shops, all selling exactly the same stuff. The owners are desperate for a sale and will hound you along the street until they get to the end of their turf.

It was in Kuta and Legian that the Bali bombings took place. Today, they're still crowded with locals and tourists alike. I have to admit I didn't experience the area by night, when the nightclubs and bars come alive

Kuta's Discovery shopping centre seems to be doing a roaring trade with tourists and locals. But outside, Kuta Beach seemed empty dirty and uninviting. Maybe it was the slightly overcast day but it didn't seem as "unbeatable" as Lonely Planet describes.

But there are still so many positive factors in a visit to Bali. As Indonesia's currency is worth considerably less than most overseas denominations, travellers can get plenty of bang for their buck.

It is hard to imagine, though, how all the bars and shops stay in business when they're all selling the same thing. Tourists are spoilt for choice: when there are two souvenir salesmen both shouting at you to get you to buy that t-shirt, walking away without it is a much more inviting prospect.

Some bars and cafes are onto a good idea. They're offering free wireless internet in a bid to target the new breed of traveller: still wearing sarongs and Birkenstocks, but now carrying a laptop so they can Skype their friends back home.

Perhaps the secret to capturing the tourist dollar, though, isn't up-to-the-minute technology. After all, it wasn't Bali's shopping or its nightlife that really grabbed me. It was the time spent away from the bustle and hum, out in the rural villages that I'll always remember: stunning scenery, gorgeous people and age-old customs. This is the real Bali, and it's priceless.

Amy Williams travelled to Bali courtesy of Club Med and Pacific Blue.

Check out the pictures from my trip to Bali on Flickr or find out more about Bali.

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