On shop-house hotels in Batam<\/p>\n
Your article that blames Batam shop-house hotels for taking
\nbusiness away from star-rated hotels tells only half the story
\n(The Jakarta Post's April 11 edition, page 5).<\/p>\n
Shop-house hotels fulfill a valuable social role in helping
\nthis expensive city stay economically competitive. Nobody wants a
\nreturn to the bad old days in the 1980's\/early 1990s when the
\ncheapest wooden boarding house charged US$20 for a tiny
\nunventilated room, and a room in one star hotel cost over $50.<\/p>\n
However, it is true that Batam hotel occupancy is in it's
\nworst state ever, with most hotels running well under a third
\nfull, ever since Batam's local government closed all
\nentertainment venues during Idul Fitri, last November. Thirty
\npercent occupancy is barely enough to pay a hotel's wages
\nand electricity bill.<\/p>\n
The reason for this low hotel occupancy is that four of
\nBatam's strongest economic engines are dead in the water at the
\nsame time<\/p>\n
Batam's largest industry is still electronics, but it is
\nsuffering from the new Free Trade Zone (FTZ) Enclave rules, which
\nare driving up the cost of just-in-time production logistics. No
\nnew factories are setting up and about a dozen are moving out.
\nLike the rest of Indonesia, Batam is slowly de-industrializing.<\/p>\n
YOHANNES YANSEN
\nBatam<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/on-shop-house-hotels-in-batam-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}