'SARS to cost 10,000 Batam jobs'

'SARS to cost 10,000 Batam jobs'

Fadli, The Jakarta Post, Batam, Riau

The outbreak of Severe Acute Respiratory Syndrome (SARS) that has
badly hit Singapore, Hong Kong, China, Vietnam and Canada, has
had an adverse impact on the tourism and service industries on
Batam island, with more than 100,000 workers facing layoffs or
dismissals.

More than 7,000 low-level workers employed in around 40 hotels
and some 3,500 others employed in entertainment centers,
restaurants and massage parlors are facing dismissal or layoff
because of a drastic decrease in foreign tourist arrivals.

According to data from the Batam Industrial Development
Authority (BIDA), the number of foreigners visiting the island
has drastically dropped by 50 percent to about 1,000 per day over
the last two months from around 3,000 per day in March and April,
2002.

The owner of the Novotel hotel, Anas, said the occupancy rate
had dropped to 30 percent over the last two months from 60
percent in January and February.

"We are making savings and calculating the number of employees
that will be laid off for several months until the SARS epidemic
has been overcome in the Asia Pacific region," he told The
Jakarta Post here on Tuesday.

Turi Beach Resort marketing manager Trozzy said that of 100
rooms in the resort, only five were occupied. "Many European and
Middle Eastern tourists have been reluctant to visit Singapore
for fear of the SARS virus while many Singaporeans and Malaysians
don't want to visit Batam for the same reasons," he said.

The frequency of the fast ferries plying the Singapore-Batam
and Djohor-Batam routes has also dropped by 50 percent because of
the unfavorable situation.

Health Massage 234 manager Evi said the number of foreign
guests visiting the biggest massage center on the island had
decreased to around ten from between 50 and 100 per day
previously.

"We are still receiving around 10 guests per day but they are
mostly locals," she said, adding that she was considering laying
off some of her employees to reduce costs.

She added that she might have to close the massage center for
the time being should the worst come to the worst.

She admitted that the massage center made a profit of around
Rp 90 million per month in January and February, "but this month
our income is only Rp 18 million and it is not enough to cover
our operating and labor costs."

Joyo, a traditional masseur, regretted the situation, saying
the SARS epidemic affected not only Singaporeans but also his
income.

He said he and the three other members of his family could
survive the economic crisis not from his monthly salary of Rp
400,000 but from the tips his customers gave him.

"Speaking frankly, I usually get between Rp 1 million and Rp
1.5 million in tips from my customers," he said.

Rio Rita Karaoke House manager Mery said she has 12 VIP rooms
in the entertainment center but only around two rooms were rented
per day.

"Don't ask me about our monthly income. The situation is
threatening our survival. The SARS issue has hit the service and
entertainment sector worse than the Bali blasts and the Iraq
War," she said.

BIDA head Ismeth Abdullah called on the government to forge
collaboration with other countries in the region to handle the
SARS epidemic and to prevent it from affecting investment on the
island.

"The industrial sector will be worst hit if the epidemic
cannot be overcome in the next one month," he said.

Riau Deputy Governor R.A. Aziz said the provincial
administration has delayed several collaboration projects with
Singapore for the time being until SARS had subsided.

"The SARS outbreak has also hit the tourist industry in
Tanjung Balai Karimun and Tanjung Pinang," he said.

He called on the Batam municipal administration and BIDA to
remain on the alert for the possible spread of SARS to Indonesia
through the island by imposing tight checks at the airport and
all four seaports on the island.