The shortage comes as the island reported its first human bird flu death on Monday, triggering fears that a tourism recovery, finally gaining momentum in the wake of bombings by Islamic militants in 2002 and 2005, could stall.

A quota allowing alcohol imports is usually issued every six months to the state-run Indonesian Trading Company, which controls supplies to the hospitality industry, but the one for the second half of 2007 has been delayed.

Donny, an executive from the company, told AFP that nothing could be brought into the country for anything except duty-free outlets without the quota. The outlets are supplied by a separate state trading company.

The quota "usually should have already been released, but we are still awaiting word from the trade ministry, which acts as the regulator," he said.

He declined to comment on a report that the delay was due to an investigation into irregularities in its operations.

Zaenuri, an official from the alcohol import section of the trade ministry, confirmed the quota had not been issued but declined to explain why.

The government needed to urgently address the situation or risk tourists going elsewhere, warned the chairman of the Bali Tourism Board, Bagus Sudibya.

"I am also a hotel owner and I know that even though tourists are returning in droves to Bali, it has become increasingly difficult to find alcoholic beverages, especially wine," he told AFP.

"I can understand that we have strict alcohol import regulations, but we must also take into account that Bali is a major tourism destination," he said.

"If we hope to make tourism a leading source of income, then we should rethink the restriction wisely, especially for the case of Bali," Sudibya said, arguing that the resort island contributed about half of the country's annual tourism revenue.

Tourism arrivals to Bali, a Hindu majority island in predominantly Muslim Indonesia, jumped 34 percent to 781 059 in the first half of 2007, compared to a year earlier.

Visitors shied away from the island after bombings in 2002 left 202 people dead, mostly western holidaymakers. Just as recovery was in full-swing, triple suicide bombings in 2005 left 20 bystanders dead.

AFP