Tanjung Balai is famous (or infamous) for it's sex tourism like it's cousin, Batam. This industry took off when gambling was booming in Batam and Karimun island and drew lots of tourist from Singapore and Malaysia. With gambling, prostitution expanded too.
In 1995 General Sutanto was chosen as the head of Indonesian National Police force and he closed down all illegal gambling. This had a dramatic effect on the sex industry but it still remains as one of the major draw for tourism to Tanjung Balai.
The current world economic slowdown has affected the flow of tourism to Tg Balai. The visitors from Singapore and Malaysia is much less now compared to one or two years ago. Hotels in Tanjung Balai are definitely feeling the effect.
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