Pangkor Island Beach Resort sees flat growth

PANGKOR Island Beach Resort expects occupancy and growth in room rates to be flat this year and 2009, as promotional activities and access into the island remain the same.

The four-star resort, owned and operated by IGB Corp Bhd, achieved a 65 per cent occupancy and an average room rate (ARR) of RM210 last year.

"For 2008 and 2009, we expect occupancy to remain at 65 per cent. We should finish this year at an ARR of RM230 and 2009 by about 20 per cent more," general manager Jimmy S. H. Yeo said.

YEO: Introducing various packages to improve performance

Although a 20 per cent increase in ARR translates to RM276 per night, Yeo said this is to mostly account for the increased cost of operation.

Yeo said if the hotel raises rates to help increase revenue, tourists will simply opt for other destinations.

"People are very conscious and sensitive about costs and they have options. Low-cost carriers offer attractive fares to other regional destinations," he said.

The option of filling more rooms to improve revenue is also proving to be tough.

Yeo said that the number of Taiwanese guests, making a major component at the resort, is reduced by 40 per cent this year compared to last year as they chose to travel to different locations.

"As a result, the hotel is now working on introducing various packages to improve its performance," he said in Pangkor recently.

One such package recently introduced is the Fly & Stay Free at Pangkor Island Beach Resort. Flights on the 48-seater Dash 7 air-craft into Pangkor, managed by Berjaya Air, are five times a week except on Tuesdays and Thurs-days.

For example, a return air journey for two persons for a one-night stay is RM1,252 (RM496 per person for flight and RM260 per night based on best online rate) and RM856 nett for one-night twin sharing, including breakfast and free usage of non-motorised land and sea sports.

The package is valid until December 19.

Meanwhile, Yeo, who is also the chairman of MAH (Malaysian Association of Hotel) Chapter in Perak, plans to present a memoran-dum to the authorities to consider helping to improve Pangkor Island, especially in terms of accessibility.

"If the island had a bigger runway to accommodate bigger planes, it will definitely help tourist arrivals into Pangkor," he said.

In fact, the hotel sits on a 40.5ha site, of which less than half has been developed. Yeo said that further development in Pangkor by IGB or other investors is unlikely to take place until and unless access into the island improves.

The 258-room hotel, which opened in 1986, was first managed by Pan Pacific. In 2004, IGB decided that its hotel management subsidiary Cititel Hotel Management will run the resort.

By New Straits Times (by Vasantha Ganesan)