Bali is back on the tourist map after the Foreign Office dropped its warning against non-essential travel to Indonesia. The move comes just in time for the opening of two luxury hotels and has sparked a flurry of cheap deals to the country.

Two years after a bomb blast killed 200 people, including 30 Britons, in Kuta, tour operators are hopeful that Bali will resume its place as one of South-East Asia's hotspots.

Sue Biggs, of Kuoni Travel, said: 'This is great news for the Balinese tourism industry, whose business has suffered as a result of the advice since October 2002.'

Kuoni is offering 14 nights for the price of seven at the four-star Putri Bali from £789 per person for holidays between 1 September and 30 November.

The new luxury hotels should help kickstart the island's tourism revival. Set among paddy fields and coconut palms, the Uma Ubud is the latest offering from the Como Hotels group, which also owns the Metropolitan in London and the luxury Parrot Cay in the Turks and Caicos. The five-star hotel, located just outside Bali's cultural hub, has stylish rooms with private gardens and plunge pools and a spa offering holistic therapies and yoga. Seven nights with flights costs from £1,270 booked through tour operator ITC Classics.

Also opening this month is the Royal Jimbaran Bay, a collection of luxury villas with private pools set in walled gardens; services include private chefs, a spa, chauffeurs and cookery classes. Until 31 October, guests will receive two free nights when they book five in a three-bedroom villa for £1,500 including transfers, bottle of wine and massage for two people.

The change in the Foreign Office advice is part of a wider strategy review which will see the FO scaling down travel warnings in response to criticism from the travel industry and tourists. It stated: 'In the future, in the case of intelligence-based terrorist threats, [the FO] will advise against travel to a specific country only in situations of extreme and imminent danger.'

See www.fco.gov.uk or call 0870 606 0290 for more information.

Kuoni Travel (01306 747008; www.kuoni .co.uk); ITC Classics (01244 335310); Royal Jimbaran Bay (00 62 361 708800; www.royaljimbaranbay. com) ; Uma Ubud (020 7447 1029; www.uma.como.bz)