SEDC Resorts Back Under Local Management

Poolside, Damai Beach Resort (file picture)

SEMATAN: Sarawak Economic Development Corporation (SEDC) resorts, once operated mainly by international franchises, are now reverting back to local managements.

SEDC has surprised many by not renewing its contracts with companies like Holiday Inn in respect of a prominent resort in Miri several years ago, and the latest, Damai Beach Resort at Santubong.

The latter has been under the management of Sara Resort (a SEDC subsidiary) since the first of this month.

Last year, a similar move resulted in the newly re-branded Damai Puri Resort and Spa.

“Sometimes, it’s better to consolidate rather than to expand,” SEDC chairman Datuk Talib Zulpilip said yesterday.

He told The Borneo Post that SEDC would not build any more hotels or resorts in the near future, adding that the corporation preferred to ‘watch the market’.

“There will be more competition two or three years down the road with new hotels (coming up) in and around Kuching City,” he explained.

Tourism and leisure-related properties constitute about 20 per cent of SEDC’s revenue annually.

Since its foray into the industry almost 30 years ago with Holiday Inn Kuching, SEDC has invested more than RM300 million.

It owns or co-owns at least seven hotels in Kuching, Bintulu, Miri and Mulu.

Other tourism related efforts comprise the likes of Sarawak Cultural Village and Kuching Waterfront.

“However, the hotels and resorts remain our biggest money-makers … (SEDC is) concentrating on upgrading the properties. We need to repair the resorts that have been around for more than 20 years,” Talib said.

On Damai Beach Resort, the older of the two resorts the corporation owns at Santubong, Talib said renovation works could cost RM5 to 10 million.

“It won’t be cheap,” the chairman said, adding that for the time being there would also be no new rooms.

As for Damai Puri, the local private holder of its 30-year lease declared close to RM30 million would be invested in it.

There will also be no new rooms.

In fact, Damai Puri’s management has said there would be a room reduction in a bid to go more high-end and exclusive.

On the overall tourism industry in Sarawak, Talib lamented that there were still some flight interlining problems.

“Sarawak’s population base is small so we need more flights, better connectivity, after which, the tourism industry will develop,” he said.

“As far as I know, we need better interlining facilities. For the moment, I believe there are only a few Malaysia Airlines flights to Kuching and that is not good for the industry.”

Asked about the increase of AirAsia’s international flights to Kuching, Talib said it was ‘good’ but customers of the low-cost airline were not big spenders.

“We are hoping for more tourists who are willing to pay more. For example, an American tourist will happily pay RM200 to RM300 a night for Crowne Plaza (Riverside).”

About 50 per cent of SEDC’s tourism revenue comes from foreign travellers.

For now at least, Talib conceded, most hotel customers are ‘used to paying RM100 to RM200’.

“We cannot increase to RM300 per night what is only RM100. That is the reality of the situation now.”

Asked whether SEDC believed investing in budget accommodation would be beneficial, he said: “… not at the moment … We want to cater to the development of the industry, but if there are private sector players, we should not compete with them unnecessarily. SEDC is here to ensure the tourism industry doesn’t suffer.”

Talib also requested complaints and suggestions to be sent to his e-mail: talibzu@pc.jaring.my.

Taken From:

The Borneo Post Online , 10/04/2008