Crackdown blamed for fewer tourists

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.