Berjaya Tioman Resort closes ops, employee compensation over RM8 million

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Berjaya Tioman Resort has ceased operations, effective 15 June, due to the COVID-19 pandemic which has adversely impacted the tourism industry. In a Facebook statement, its management said throughout the closure, it will embark on "a much needed major redevelopment to revitalise the resort which is more than 50 years old".

Upon completion of the redevelopment exercise, the management will consider offering new employment opportunities to all its affected employees. "It is with deep regret that retrenchment will be carried out and all affected employees will be fairly compensated in accordance to the Collective Agreement and the Employment Act, amounting to a total compensation of more than RM8 million," the management said. It added that its hearts go out to those who have been affected by this closure. A+M has reached out to Berjaya Tioman Resort for comment.

Berjaya Tioman Resort is one of the hotels under Berjaya Hotels and Resorts. The list of hotels and resorts under the group also include Berjaya Times Square Hotel and ANSA Hotel in Kuala Lumpur, Berjaya Langkawi Resort, Berjaya Makati Hotel and Berjaya Hotel Colombo.

Separately, another hotel management company, Swiss Garden International (SGI), also closed two of its hotels - Swiss-Inn Chinatown in Kuala Lumpur and Swiss-Inn Sungai Petani in Kedah. A+M understands that its Swiss Garden Beach Resort Damai Laut will also be closed for renovation, and subsequently converted into a DoubleTree by Hilton hotel. A quick check by A+M showed that Swiss-Inn Chinatown in Kuala Lumpur and Swiss-Inn Sungai Petani have been removed from SGI's official website.

Meanwhile, Four Points by Sheraton Sandakan in Sabah also ceased operations and terminated its employees in May. In a letter to employees by general manager David Scully seen by A+M, the hotel had been experiencing economic downturn over the past few months due to a lack of demand for products and services in the hospitality sector.

Travel firms in Asia have also not been spared from the impact of the pandemic. Travel tech and marketing company Sojern laid off 50% of its global workforce earlier this year due to the pandemic. A quick check by Marketing previously found that staff based in Singapore and Hong Kong were also impacted and laid off. Meanwhile, travel activities and services booking platform Klook also streamlined its workforce globally either through temporary leave or headcount reduction. CEO and co-founder Ethan Lin said the move will impact 10% to 20% of its headcount for most functions.