The statistics behind the resort's success

BINTAN ISLAND, Riau (JP): On a warm May afternoon above a forested cliff, Ria Bintan Club Med Resort executives gathered to celebrate the resort's first summer season with 150 corporate clients and 230 journalists from around the world.

General manager Mehdi Serrour and Club Med CEO Philippe Bourgougnov played hosts to the guests enjoying the resort's lush grasslands, clear waters and above all, the complimentary three- day, two-night stay at the resort.

This included fine wine and dining at any of the resort's four restaurants, a circus school, a multitude of activities from trying trapeze acts, archery, windsurfing, scuba diving to animation theater, and staying in luxurious rooms, most of which have a sea view.

The resort, opened on Oct. 24, 1997, is Club Med's newest addition to its current 120 villages in 36 countries worldwide, along with one in Cuba that also opened last year.

At the gathering, Serrour would not say what the extravagant Club Med cost to build, but a corporate client figured that the cost could have reached more than Rp 15 billion.

The Ria Bintan Club Med Resort (RBCM), built on 20 hectares, has guests enjoying a nearby 218-hole golf course, which does not belong to Club Med, an exclusive beach, beautiful architecture and aquamarine waters of the South China Sea.

With Singapore less than an hour away by boat, day trips or two to three-day trips are available from Bandar Bentan Telani Ferry Terminal, Bintan Resorts.

The resort has 308 rooms and two heated swimming pools.

According to Serrour, the resort comprises 15 percent of the S$3.5 billion investment pie significantly baked by the widely diversified Salim Group and Singapore's Keppel Group.

The Salim Group developed Bintan Beach International Hotel on 23,000 hectares in a consortium comprising Riau's provincial administration, the Indonesian Navy and a group of Singaporean investors.

The Indonesian group owns 60 percent of the project and the rest belongs to Singaporean investors.

The consortium has managed to turn the swamps and jungle along the island's northern beaches into a posh tourist resort. Its hotel list includes the Rasa Indah, Sedona Bintan Lagoon, Bintan Lagoon Beach and Resort, RBCM, Banyan Tree Bintan, Mana Mana Beach Club and the Nirwana Garden Resort.

Despite a debilitating economic crisis and the heated political situation, RBCM can still afford luxuries.

Target

When asked about cost-cutting measures, Serrour shrugged. "We have a chairman who believes a lot in brands. It wouldn't be Club Med if we cut costs. I'd say we'll see more and more of the Club Med logo... the same all over the world," Serrour said.

"There are usually two choices. Cutting cost or doing our all to fill up the resort by having more people coming in, even in low season. Cut costs or make incomes better. We chose the latter. Again, it is not about throwing money out the window."

With strong rumors pointing at a 50 percent occupancy rate as the cause of the extravaganza to entertain media and corporate clients, Serrour said a 70 percent occupancy rate was the target.

"We are more or less achieving what we had wanted to at this point of the year. We may have less Koreans or less Indonesians (Asians in general) than expected (due to the crisis)," Serrour said.

"We have, however, gained from the European side. Last week, we had 250 French people who stayed two weeks, which made all the difference. A lot of Japanese in the same week stayed for three days.

"Europeans, because they come from so far off, take full advantage of their time and vacation here."

Weekday room rates cost an adult Rp 1.2 million, a child between four and 11 Rp 780,000, and a child between a few months old and three years Rp 165,000.

Weekend rates cost an adult Rp 1.5 million, Rp. 960,000 for children between four and 11, and Rp 210,000 for infants.

High season room rates differ and cost about Rp 300,000 more for adults and children between four and 11.

This excludes lunch, dinner and sports activities costs.

Serrour reiterated that Club Med was not currently focusing on finance.

"How can we... when you have just started something, you don't expect to make money tomorrow or the day after tomorrow," Serrour said.

He said the resort was currently trying to improve in terms of service and staff.

"Simply by listening and watching the life of the resort (the guests), we are going to see in terms of operation what we are going to propose to our guests.

"For instance, sports. Are we going to talk mainly in terms of land sports (golf) or water sports ..."

The staff at RBCM comprise 66 expat general organizers (full- fledged entertainers and helpers) and 350 Indonesians. The whole staff represents 37 nationalities and 26 languages.

It was also "a little impossible" to cut down on staff, Serrour said.

"The people who perform in the night shows are the same who take care of the kids, the bar, the same who teach you windsurfing. If they are fired, how are we to fulfill our promises to our guests?"

He explained that almost all of them enjoyed being trained to be jacks of all trades.

"You have to understand that all of them are living out a concept," Serrour said.

"They (general organizers) are 20 to 25 years of age, positive about life. They get to live near the beach and live the lives of teenagers... work all day and all night, party all day and all night, eat the quality of food that they eat here... what reason would they have not to be happy?"

This might be true to the last word.

However, the service staff complained of being underpaid.

Sam (not his real name), said that the "French chef nicely pockets Rp 24 million every month" while the "Indonesian chef" makes close to "Rp 1 million only".

Sam pointed out that even if the Indonesian chef was not "of the same level... or not as qualified or not holding a position equal to that of the French chef, the gap is still too wide".

Club Med around the world boasts 76,000 beds, 12 villages in Asia, 89 in Europe and 17 in North America.

At the press conference on May 9, Bourgougnov, Club Med's CEO, said 14 percent of Club Med's business came from Asian general managers.

"Almost 92 percent of the GMs vacationing in Indonesia come from the Asia-Pacific region," Bourgougnov said.

"Seventeen percent from Australia, 20 percent from Japan, 5 percent from Singapore, 14.5 percent from Korea and GMs from the remaining Asian countries contribute 34.8 percent," Bourgougnov said.

He lists the facilities worldwide -- among them about 14,000 service staff, 40 different sports and 950 sailboats. Then there are over 200 restaurants, 30,000 annual parties and an average of 27 million meals served a year. (ylt)