Sat, 17 Jul 2004

Blackouts cost tourism, Internet businesses

Syofiardi Bachyul Jb, Padang

Rotating power shutdowns in West Sumatra in the past month have hit the tourism and telecommunications sectors in the province.

Businessmen have not yet reported significant financial losses due to the incidents, but they have disrupted the operation of hotels and telephone and Internet kiosks in the province.

Chairman of the West Sumatra Hotel and Restaurant Association (PHRI) Aim Zein said on Friday that the power problem had been an inconvenience to foreign and domestic guests staying at hotels in West Sumatra.

"It's disappointing. The tourism sector has just bounced back after the crisis that followed the Bali and Marriott hotel bombings in the past two years, but now we are facing another crisis," said Aim.

There are 1,500 hotel rooms in Padang and Bukittinggi municipalities alone, and some 90 percent of these are filled by guests staying there during the school holidays.

"We are afraid that the tourists will be disappointed by the poor infrastructure and will decide not to visit West Sumatra anymore," he said.

He said that two weeks ago, state electricity company PT PLN cut power in the province for three hours per day, but now power outages were 6 hours to 12 hours per day.

He said that the hardest hit were non-star-rated hotels, because they were not equipped with power generators. This was disturbing because about 90 percent of more than 100 registered hotels in West Sumatra are non-star-rated.

Aim said that hotels bore the costs of power shutdowns in three ways. First, they were supposed to satisfy customers, but the power cuts had caused disappointment. Second, operational costs for hotels using generators soared as they had to spend much more on gasoline. Third, the rotating shutdowns damaged appliances, air-conditioners and other items.

A similar situation also applied to restaurants. He said restaurants were unable to provide high-quality service because there were frequent disturbances to kitchens and their electrical appliances.

Internet businesspeople also expressed concern at power shutdowns that have affected three provinces: West Sumatra, Jambi and Riau. Chairman of West Sumatra Computer Businesspeoples Association (Apkomindo) Setiawan said most association members had complained over the incidents.

"Sudden, repeated power shutdowns have damaged our computers. Three of my hard disks are damaged and their repair cost me Rp 2 million (US$ 210.5)," said Setiawan.

Setiawan, the director of CV Ikrar Mitra Utama, who is also an Internet Service Provider (ISP), said that he had to spend a lot on running a generator.

He said he was planning to seek compensation from PLN over the losses that he had borne due to power cuts.

Power outages occurred after the decline in water debit in reservoirs and lakes that are the energy source for three power plants in the three provinces.

Deputy communications manager at PLN's West Sumatra office Yusman Radjo Mudo said on Friday that the company was doing its best to bring the power outages to an end.