Madura to get three-star hotels after bridge opening

Indra Harsaputra ,  The Jakarta Post ,  Surabaya   |  Sat, 07/04/2009 1:05 PM  |  The Archipelago

The influx of investment into Madura Island, following the opening of the Suramadu bridge, has seen investors planning to build three-star hotels.

Currently, 31 lower-rated hotels are found in the island's four regencies, 12 of which are hotels and the rest modest lodgings.

Yulianto Sochebu, from the East Java Hotel and Restaurant Association (PHRI), said three hotel investors, including the Hotel Sahid Group, would build two hotels, and the Accor Group and Shangri-La Hotel Group would each build a three-star hotel in Madura in 2010.

"The three companies are currently carrying out feasibility studies in Madura," Yulianto told The Jakarta Post in Surabaya on Friday.

"They plan to build several waterfront resorts facing the Suramadu bridge."

The opening of the bridge, linking the economically isolated Madura Island with the East Java capital Surabaya, has led to a surge in planned investments in the island.

PT Sahid International Hotel Management and Consultant (SIHM) director Johnny Subarkah confirmed his company's plan to build new hotels in Madura.

The company has invested Rp 50 billion (US$4.8 million) to build the two three-star hotels in Sumenep and Bangkalan regencies.

"We have conducted field surveys and are planning to build two star-rated hotels in 2010, given the huge potential of Madura following the opening of the Suramadu bridge," he said recently in Surabaya.

He added SIHM was confident about building the two hotels, after being informed the government was keen on developing a 600-hectare authorized zone at each end of the bridge as business and trade areas.

"We were earlier hesitant about investing in Madura, but after being informed of the plan and conducting field surveys, we are now determined to invest there," Johnny said.

He added his company would target businesspeople and government officials to stay at the planned hotels.

"Apart from businesspeople, many provincial officials and even those from the central government will pay visits to Madura in the future," he said.

Bangkalan Regent Fuad Imron said the government was also planning to build a three-star hotel in the area, where the former Pasar Baru market once stood, or near the southern Bangkalan city square, which has already been demolished.

"We envision Bangkalan resembling Singapore. We demolished the old market to make way for the first star-rated hotel in Bangkalan," Fuad said.

"According to the plan, the hotel will be named Hotel Muslimin, with the intention for the guests staying there to refrain from violating Islamic teachings."

The regent added his office would build supporting infrastructure, such as power grids and water pipes, and had set aside funds to provide training for local residents in light of the expected surge in development in the region.

A community leader in Patapan village, Labang district in Bangkalan, Ahmad Ali Ridho, urged the government to cap land prices in Madura, which soared after the Suramadu bridge went into operation.

Land prices are currently rising by more than 200 percent.

This could hamper investment, Ridho warned.

"The soaring land prices are sparked by speculators who began buying up plots of land long before the Suramadu bridge was inaugurated," he said.

"They have acquired nearly 90 percent of the land near the bridge."

Bangkalan councilor Sufyan Rasyidi called on local people to be careful about selling their land to speculators.

He also urged the provincial administration to regulate the land prices around the bridge area.

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