The term integrated resorts now describes urban or beach resorts offering a one-stop R&R with casinos, theme parks, shopping malls, entertainment centres and more, making them relevant to a wide range of clientele, from families to MICE delegates.
In this cover story, we take a look at four familiar names in South-east Asia – Desaru, Lombok, Bintan and Langkawi – whose time to shine has come given developments that are fast making them the next one-stop R&R venues.
By Raini Hamdi, Xinyi Liang-Pholsena, S. Puvaneswary, Mimi Hudoyo and Paige Lee Pei Qi
Overview
This coastal resort in southeastern Johor, Malaysia, with its laidback ways and kampung (village) feel, is a playground for locals and a smattering of Singaporeans from across the causeway. But Destination Resorts and Hotels (DRH)’s Desaru Coast development – pulling in names such as Amanresorts, Datai Hotels & Resorts (which it owns) and The Els Club, plus attractions such as marine and water parks – may change Desaru’s humble image once and for all and bring in the well-heeled and MICE groups to the neglected destination.
Desaru had tried, twice before, to be in the major league of Asian resorts by attracting foreign investment. Twice it failed. This time, it’s different.
“You’ve got to see it to believe it,” said Darrell Metzger, a DRH board director. “When you see the golf courses, when the hotels are up, it won’t take long before you realise this is a premier destination. For a stretch when you drive (to Desaru Coast), there is nothing but plantation, then a whole new world opens up when you see the signage, the landscape, etc, and everything there is new.”
DRH has some 1,700ha of land and what’s on the drawing board currently (see details below) is just phase one, comprising 30 per cent of the land, scheduled to open in 2017, he said.
Established in 2010 by the Malaysian government’s investment arm, Khazanah Nasional, DRH’s mission is to own, develop and catalyse world-class premier destinations. For many, that’s the big difference in helping Desaru to take off. For one, the important aspects of developing virgin territories, such as accessibility and marketing, are being handled.
For instance, DRH has been marketing Desaru Coast as a MICE and leisure destination since 2012 and to-date has built up “a large database of interested corporate clients and travel agencies”, according to Ahmad Burhanuddin, managing director of DRH.
“For MICE, we’ve been attending the major tradeshows in Asia-Pacific such as AIME, IT&CMA, IT&CM China and IBTM India.
“Being part of Malaysia Convention and Exhibition Bureau’s industry partner’s programme, we also leverage on its presence at international tradeshows and attend its events to promote Malaysia as a MICE destination to MICE planners and travel agencies overseas.”
MICE
Burhanuddin said Desaru Coast offers MICE planners and organisers a new choice.
“Desaru Coast is a new venue with a conference facility, varied choice of entertainment within the development including two internationally-managed water theme parks and a 27-hole golf course designed by Ernie Els.
“Then there are the many local tourist attractions within close driving proximity to Desaru Coast which provide options for post-conference visits. These include the Desaru Fruit Farm at Sungai Cemaran, Desaru Ostrich Farm at Teluk Ramunia, crocodile farm at Kampung Belading and a Fishermen Museum at Tanjung Balau.
“While we are targeting mainly delegates from Asia-Pacific, we expect at least half of our visitors will be meetings, incentives and conference delegates coming from Malaysia and Singapore, while many international markets will come through Changi.”
Coming up*
The Els Club
This comprises two championship golf courses with ocean views, a 27-hole designed by The Open 2012 champion Ernie Els and an 18-hole designed by multiple major winner Vijay Singh. Not only are these the first two courses in the region designed by these champions, DRH is also bringing in the lifestyle golf club founded by Ernie. The Els Club Malaysia will be the first in South-east Asia and the third in the world after Dubai and South Africa.
Ocean Quest Marine Park and Ocean Splash Water Park
Ocean Quest is the first educational and interactive marine theme park in Malaysia offering guided and self-guided encounters with thousands of tropical reef fish, marine creatures and wildlife species ranging from birds, mammals, reptiles and insects. Ocean Splash introduces the largest saltwater wave pool in Asia, exhilarating water slides, raft slides and other exciting water features.
Aman Country Club and Aman Villas
Boasting 46 suites and 52 four-bedroom villas, this latest addition to Amanresorts is an exclusive six-star club resort situated in the south-east of Desaru with breathtaking views of the South China Sea.
The Riverwalk
A waterfront landscaped retail and lifestyle village located within easy reach of hotels and theme parks in Desaru Coast. The Riverwalk offers retail outlets, chic restaurants, al fresco cafes and entertainment venues.
Datai Desaru
Representing the first expansion of the Datai marque, Datai Desaru is a five-star luxury resort which pays homage to its inspiration, The Datai Langkawi. Nestled on a hilltop, the hotel and villas enjoy stunning golf and ocean views. There will be 16 villas and 84 rooms.
Plantation Hotel (working name)
A family-oriented hotel designed around the Ocean Quest theme park, integrating the immersive experience of marine life right into the heart of the property, the entertainment areas and even guestrooms. There will be 383 rooms.
A Starwood brand resort
This is a 275-room beachfront resort located in the heart of Desaru Coast with easy access to The Riverwalk, conference centre and the theme parks.
Conference centre
Located adjacent to the above resort, it will boast an exhibition space of about 1,200m2, banquet capacity of up to 1,000 pax, meeting rooms, VIP lounges/pre-function rooms.
* All projects will open in 2017
Kilim Geoforest Park mangrove area at the
northeastern tip of Langkawi
Overview
Langkawi will sharpen its focus on the premium travel segment, including MICE, in order to increase yield and reduce its carbon footprint.
Arrivals climbed 12 per cent last year to 3.4 million tourists, surpassing the three million target initially set for 2015 in the destination’s 2011 tourism masterplan, according to Khalid Ramli, CEO of Langkawi Development Authority (LADA).
Hence, LADA is revising its 2015 target to four million arrivals, he said. However, tourism receipts are still below its aim of RM3.8 billion (US$1.2 billion), so this will be a critical year to reach it, he added.
“We need to look at high net worth tourists because (this segment) will give higher revenues with smaller numbers.”
This includes the MICE market, whose delegate yield is thrice more than international leisure tourists who spend on average between RM2,200 (US$686) and RM2,600 (per tourist, per visit).
In line with the high-yield drive, Langkawi’s hotel pipeline comprises several luxury hotels, including The Ritz-Carlton, which will boost the destination’s room supply from the current 9,000 to 15,000 by 2017.
In addition, a host of new tourism products are opening (see Coming Up).
Property and leisure group Tradewinds Corp is also reportedly investing some RM4 billion to develop Perdana Quay in Langkawi’s Pantai Kok-Teluk Burau area on the northwest of the island. This will be the first integrated leisure, retail, residential and commercial development on the island.
The project is said to span 10 to 12 years in six construction phases, covering a total of 96ha of land. Phase one and two will include attractions such as butterfly, forest and water-themed adventure parks.
Retaining the destination marketing slogan as Naturally Langkawi, LADA will also leverage Langkawi’s natural appeal to attract more sports and eco-related events, including high-profile ones like the IFMA Muaythai World Championship, which was held for the first time in May, and the 5th Asian Bird Fair, which will be held for the first time in Langkawi in November.
Meanwhile, LADA is in talks with airlines and relevant authorities to welcome direct flights from the Asia-Pacific region, revealed Khalid.
MICE
Last year, MICE contributed 10 per cent of Langkawi’s 3.4 million total arrivals. Most delegates came for meetings and incentives, said Rosnina Yaacob, manager tourism division, LADA.
She said Langkawi is focused on attracting MICE delegates from the Asia-Pacific region by participating in MICE tradeshows such as AIME and Malaysia Convention & Exhibition Bureau’s roadshows overseas.
Small and medium-size groups of up to 400 pax are ideal at present. “More than that, there will be a problem to accommodate all delegates under one roof as there are only three properties on the island that have more than 300 rooms – Berjaya Langkawi Resort, Meritus Pelangi Beach Resort & Spa, Langkawi and Resorts World Langkawi. Flights are not really a problem because charters are an option,” she said.
Of Langkawi’s 9,000 rooms currently, 30 per cent are four- and five-star hotels.
For group sizes of 100 delegates or more, of which 70 per cent are foreign delegates, LADA will host a complimentary dinner and cultural performance, or a meet and greet at the airport and a cultural performance there.
Recently-opened
Vivanta by Taj-Rebak Island Langkawi
The former Rebak Island Resort has been renovated and extended with an additional 12 guestrooms, bringing the total room inventory to 94 units. It was officially launched as a Vivanta by Taj resort on May 28. This 390 acre, five-star private island resort managed by the Taj Group of Hotels & Resorts has an 18m x 3m function hall which can accommodate up to 100 pax theatre-style. There are three F&B outlets.
Els Club Teluk Datai
Els Club Teluk Datai, an 18-hole championship golf course, opened for play in May. The club is open to The Datai Langkawi hotel guests and to the public for a daily fee. It also has tie-ups with various hotels in Langkawi and golf packages are readily available to clients who want to play multiple rounds of golf.
The most significant feature about The Els Club Teluk Datai is its incredible location. From the lush backdrop of the rainforest of the Machincang Mountain range to the turquoise waters of the Andaman Sea, it’s a feast for the eye.
The Els Club
Coming up
Langkawi Sky Bridge
The iconic bridge has been closed for maintenance since July 2012 and is due to reopen by year-end. Hanging 700m above sea level from the peak of Machinchang Mountain, the 125m curved cable-stayed pedestrian bridge has been dubbed an engineering marvel. A new inclinator will take visitors up to the bridge.
Langkawi Sky Bridge
Oriental Village (1Q15)
Home to more than 50 F&B outlets, retail stores, galleries and activity providers, the Oriental Village is undergoing an expansion over the next few years to welcome a 13.4ha eco-theme park and an exclusive resort.
In the first phase of the eco-theme park development, a key attraction will be an Omnidome 3D flight, a 3D theatre showcasing the island’s beauty created in partnership with National Geographic. Other attractions will include a bio-dome highlighting the flora and flora of Langkawi, a cultural village with an amphitheatre and a 250-room hotel.
The first phase is due to be completed in 1Q2015.
A second phase will follow, adding tree-top walks, rope bridges, an adventure park, a VIP tree-top resort and more hotels.
Hotel and Langkawi International Convention Centre (2015)
A new luxury hotel with 84 suites and 11 villas with an adjoining convention centre, to be known as Langkawi International Convention Centre with a capacity to accommodate up to 1,000 pax, is being built in Kuah and is scheduled for completion just before the ASEAN Summit in Langkawi in April 2015.
The hotel and convention centre is owned by the Rajawali Group and is likely to be managed by an international brand.
The Ritz-Carlton Langkawi (2015)
The 132-room luxury resort is scheduled to open in 2015 on Pantai Kok, overlooking the Andaman Sea. It will offer a family-friendly escape with three swimming pools, a Ritz-Carlton Spa and three dedicated event venues for small to medium sized events.
Rahsia Estates Resort Residences, Eco-Hotel and Spa (mid-2016)
The 6ha resort development is set along a river estuary overlooking Pulau Dayang Bunting, in Kampung Temoyong in Kedawang. Comprising three precincts – 30 luxury cabana villas, 130 resort suites and a 116-room hotel – the RM480 million resort will also boast a non-invasive aesthetic clinic and a wellness centre featuring both Asian and Western spa treatments. It is set to be the first resort to achieve the Green Building Index certification in Langkawi.
The Sultan’s Palace (2017)
This 9ha exclusive resort on Pulau Intan Besar can be reached via a 1.6km boat ride from the main Langkawi island. The RM500 million development will have 100 luxury suites and 17 high-end villas.
Overview
The province of West Nusa Tenggara, along with Bali and East Nusa Tenggara, has been marked a tourism corridor in Indonesia’s Economic Master Plan 2011-2025.
West Nusa Tenggara covers the main islands of Lombok and Sumbawa, and as many as 280 tiny islands surrounding them. The status gives them priority in developing infrastructure and facilities.
Lombok, too, is one of 16 destinations Indonesia’s Ministry of Tourism and Creative Economy is focusing on for MICE arrivals.
Lombok International Airport, which replaced Selaparang Airport in 2011, is scheduled to expand its runway from 2,750m now to 3,000m next year.
Mandalika Resort in the southern coast of the island is a Special Economic Zone, with the government providing incentives to investors developing projects in the integrated resort. A convention centre and a show hall will also be built there, dedicated facilities which stakeholders said Lombok needs in order to grow the MICE business.
Mandalika covers a total area of 1,175ha and will be developed in three stages with final completion by 2020.
Development has started with the first phase of a 4km road construction, to finish this month. The total 22.5km road is expected to be completed in 2020.
Meanwhile, a solar cell with a total output of 15 megawatt is under review at the ministerial level with a target to start before the end of the year on a 40ha land, said Edwin Darmasetiawan, director of development, Indonesia Tourism Development Corporation, the master developer of Mandalika. Construction of other basic infrastructure such as telecommunications and water supplies is also scheduled to start early next year.
Three investors are preparing to build six hotels, including Club Med and Marriott Vacations, and an 18-hole golf course which is targeted to open in 2018, according to Darmasetiawan.
Apart from Mandalika, there are three other integrated projects in Lombok:
• The 200ha Mekaki Bay Resorts in the southwestern tip of the island with slots for 14 four- and five-star properties and two luxury villa complexes. Surfing is a major attraction here.
• The 7.4ha Medana Bay Marina in North Lombok, which opens investment opportunities for hotels and recreational facilities.
• The 400ha Tanjung Ringgit in the southeastern part of Lombok and the Eight Islands in the northwestern part of Sumbawa. Both are earmarked for integrated eco-resort development.
Indonesia’s Minister of Tourism and Creative Economy Mari Elka Pangestu said tourism to West Nusa Tenggara (where Lombok by far is the major destination) has picked up since it was singled out as a tourism corridor in 2011.
Domestic and international arrivals to the province rose to 1.2 million last year, from 887,000 in 2011.
Accessibility has tailed the growing demand. Air links between Singapore and Lombok have increased with Tiger Airways starting thrice weekly services last year, adding to SilkAir’s five-weekly flights, while AirAsia has a daily service between Kuala Lumpur and Lombok.
Meanwhile, an increase of Garuda Indonesia services between Bali and Lombok, from one to thrice weekly, has given Lombok new opportunities to reach the Japanese and South Korean markets as well as Australian markets beyond Perth.
Data from Lombok International Airport showed that foreign arrivals are rising significantly. Last year, 1.1 million movements were domestic traffic and 79,000 were international, a rise of 17.3 per cent and 194 per cent over 2012 respectively.
MICE
According to Darmasetiawan, the convention centre and show hall will be built when hotels and other supporting facilities are up and running.
He said the show hall would host national and international concerts, performances and other showbiz events. “Bali does not have this facility and Lombok has the opportunity to develop this market, setting it aside from its neighbour.
“We have approached the Kompas-Gramedia Group (which owns several convention centres in Indonesia including the Bali Nusa Dua Convention Centre) and it has shown an interest,” he said.
But no concrete details are available.
Meanwhile, Lombok has been enjoying growth in domestic MICE, which its stakeholders have been building steadily over the last decade.
Regional data shows in 2013, the destination received around 900,000 domestic arrivals and more than half were there for MICE events.
What Lombok needs to do next is to develop infrastructure and human capital so that it can reach the level of Jakarta or Bali as a MICE destination, according to industry players.
The tourism ministry and MICE Centre, an Indonesian MICE research and development body, have done destination mapping for Lombok and, based on the findings, believe its greatest potential lies in meetings and incentives.
Christina Rudatin, advisor of MICE Centre, said: “As it is, Lombok is a promising destination. But it needs to have a MICE venue, its people need to be ready to be MICE hosts and there must be vendors which can cater for MICE organisers’ needs.”
Coming up
The Golden Palm Hotel, Mataram (3Q14)
180 rooms
Marina Del Ray (second half 2015)
A yacht marina in Gili Gede Island, West Lombok
Archipelago International (late 2014/2015)
Archipelago International will open four hotels in Lombok this year and two next year. Royal Kamuela Lombok, with 50 villas, and three Fave Hotels in Mataram and Senggigi with 100 to 140 rooms each will open later this year. Its two properties opening in 2015 are a 290-room Aston in Senggigi and a 140-room Aston in Mataram.
Overview
Since breaking ground in May 2008, Lagoi Bay has elevated the allure of Bintan Island with its highly-anticipated launch of resorts and attractions. A string of lifestyle and resort operators have opened, including the Lagoi Beach Village Mall, Air Adventures, The Sanchaya and, most recently, the 196-key Grand Lagoi Swiss Belhotel, equipped with MICE facilities. More are on the way (see Coming Up) in the Lagoi Bay development.
Upping the anticipation factor further is a deal inked between Garuda Indonesia and Singapore-based investment company Gallant Venture to develop a new international airport, located just 35 minutes from Lagoi Bay.
The new airport has already garnered interest from low-cost carriers, according to Asad Shiraz, Bintan Resorts International (BRI) marketing director. Shiraz is hopeful it will result in vital domestic and regional airlinks such as to India and China.
“We also see the opening up of charter flights from Europe for this airport,” he added. European markets such as the UK, France, Germany and, increasingly, Russia are significant for Bintan, comprising eight per cent of arrivals.
Bintan Island is currently served by Raja Haji Fisabilillah International Airport, located in Tanjung Pinang, the capital city of the Riau Islands. The bulk of visitors though arrive from Singapore via a 45-minute ferry connection.
With development picking up pace, BRI is stepping up marketing to the travel trade and consumers in selective markets, using channels including advertising both in online and print media, and social media.
A series of roadshows and mini-travel marts to India, China and Indonesia, and sales calls to Japan and South Korea, are also planned. Among segments targeted are weddings, MICE and school tours.
MICE
According to Shiraz, while the meetings and incentive segment comprises a mere eight per cent of visitors to Bintan, new offerings will help bring this number up.
Pointing to Bintan Lagoon Resort, although the property is not part of the new Lagoi development, it has one of the newest MICE facilities on the island. Shiraz said the three-storey 2,000m² banquet hall, which opened early last year, can fit 1,300 pax in a theatre setting, and is a major pull factor for meeting delegates.
Additional space in this centre includes a ground floor reception foyer holding 500 pax (standing) and an outdoor roof terrace which can accommodate 200 guests.
Over at the 196-key Grand Lagoi Swiss Belhotel which opened in May, the Diamond Grand Ballroom, with three partitions open, can fit 220 pax in theatre-style. The hotel also offers five additional meeting rooms ranging between 45m² and 64m².
Keeping in mind that MICE organisers are often on the lookout for golf courses, Shiraz said: “We (BRI) have four courses in Bintan which are among the best in Indonesia, with the Ria Bintan Gold Club being the best in Asia.”
Ria Bintan Golf Club is a 27-hole championship course designed by world-celebrated golfing legend, Gary Player, and has lured golf enthusiasts with its award-winning 18-hole Ocean Course and the nine-hole Forest Course. The club also has two function rooms that can jointly accommodate up to 80 for a sit-down dinner.
Coming up
Plaza Lagoi (end 2014)
Touted as Asia’s first beach village mall, Plaza Lagoi, which is built across 20ha, will have the highest concentration of commercial, leisure and recreational activities on the island. Resort visitors will have easy access to the mall via regular shuttle buses.
Bintan Market Place (end 2014)
Comprising 41 shophouses, an F&B enclave and a weather-proof canopied walkway, Bintan Market Place aims to offer visitors a new retail and dining experience. In the evenings, the four-storey complex will be illuminated with the latest lighting technology, followed by night entertainment with various live bands and music.
Alila Villas Bintan (2015)
Located on a hillside on Lagoi Bay, Alila Villas Bintan is the third addition to the Alila Villas brand. The 14.4ha gated development will comprise 12 three-bedroom beachfront residences and a luxury boutique resort with 52 one- and two-bedroom villas. Key to the development will be ‘The Village’, an additional 4ha hub for the arts, culture, culinary and wellness activities for guests and visitors.
Bintan Resorts International Airport (early 2016)
The airport will have one terminal and a 2.5km runway. It can accommodate aircraft such as the Boeing 737 and Airbus 320, which have an operational radius of about five hours. This would place much of ASEAN as well as southern China and South India countries within its reach.
The new airport is set to be operational by early 2016. The terminal will be linked to a ferry terminal serving Singapore-Bintan ferry services.
Lagoi Bay
