Crackdown blamed for fewer tourists
Fadli, The Jakarta Post, Batam
A drastic drop in Batam's tourist arrivals in the January-October period has forced dozens of entertainment establishments, such as karaoke and massage parlors, to close down.
Based on data from the Batam Tourism Office, tourist arrivals started decreasing after the government started to crack down on gambling activities few months ago. Batam's 2005 target for tourist arrivals is 1.5 million.
Casinos indirectly contributed much to tourism on the island by attracting visitors from nearby Singapore on weekends. The considerable drop in the number of tourists to Batam can be seen in 2004's figure of 1,527,216 arrivals, in which from January to October the number stood at 1,271,948, compared to 870,356 in the same period in 2005, a deficit of 402,583 tourists, which has had an adverse effect on the entertainment industry.
The situation was different between 2001 to 2004, during which the number of foreign tourists visiting Batam was on an upward trend. In 2001, Batam recorded 1,145,578 foreign arrivals, in 2002 foreign arrivals numbered 1,101,208, 2003 it was 1,277,098 and in 2004 the number reached 1,527,216 tourists.
Over the past few months 10 of the 40 karaoke halls registered at the Batam Tourism Office have closed down, as have a number of massage parlors, both of which contribute significantly to revenue from tourism, mostly derived from Singaporeans who visited on weekends.
The head of the Tourist Attractions and Service Department of the Batam Tourism Office, Saad, told The Jakarta Post on Wednesday that the drop in the number of tourists and the impact from the closure of entertainment centers on Batam also negatively affected Batam municipality's tax revenue from the tourist sector.
In 2004, tax collected from tourism amounted to Rp 472.7 million. From January to October 2004, tax revenue stood at Rp 401.1 million. It dropped 15 percent this year to Rp 341.7 million. This year's targeted Rp 450 million is unlikely to be reached.
According to Saad, decreasing foreign arrivals to Batam and the consequent impact on the entertainment sector is due to the crackdown on gambling activities across the nation, which began in July at the instruction of the then new National Police chief, Gen. Sutanto.
Despite poker machines being classified as gambling equipment and therefore illegal by law, the Batam municipality had issued 3,800 permits for poker machines and 90 amusement business licenses.
Foreign tourists, especially from Singapore, used to travel to Batam to gamble and also proved a boon to the karaoke and massage centers, some of which also had sex workers on their premises, which was a further attraction.
The absence of customers could be seen at the entertainment hub in Nagoya. Normally, the place would be packed with foreign tourists patronizing karaoke, massage parlors and other entertainment centers until 3 a.m. These days, however, the area is quiet by 11 p.m.
Only a few bars in the Harmoni Batam shopping complex, where Western expatriates hang out, are busy until 1 a.m., but fewer Westerners visit Batam than Singaporeans.