The statistics behind the resort's success
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)