Exit Statement

Primaland Port Dickson Resort & Convention Center

 

Primaland Port Dickson Resort & Convention Centre (PRCC) under Prima Inland Sea Resort Sdn Bhd (PISRSB) announces its exit. The shutters came down on 18th July 2017.

 

Many people start businesses with the eventual goal of selling them - regardless of its success or failure. Given its prime location encase within the then largest man-made beach, nearby two golf courses at a village of Pasir Panjang , the then multi-awards winning Tiara Beach Resort attracted all walks of people to invest/ patronize in the infamous Resort Style Apartment (with Malaysia's Largest Man-Made beach), the first of its kind in Malaysia.

 

It successfully managed to grow its portfolio, create operational synergy with its unique and innovative product until an initial transition of Tiara Beach after 8 years of operations. Inevitably the Resort owners and operator's brief exit in 2012, allowed an opportunity to Primaland Port Dickson Resort & Convention Center to see a takeover (as a Tenant Operator) and manage the Resort with an initial of 250 room inventory, the water park, meeting facilities, and 3 food & beverage outlets.

 

After entering its first year of business operations, PRCC has already suffered a net operating loss of 3.9 million ringgit. It coincided on the election year; the sudden drop in meeting groups and businesses on weekdays' the entire year; the nation's tragedies of MH370 (i.e March 8, 2014) and MH17 (i.e. July 17, 2014) that totally wipes out to zero group, our anchor and core source of weekdays income tour series from China resulting to yet another damaged of a 35% dropped in total revenue for more than 11 consecutive months (i.e. March 2014 - Feb 2015).

Nevertheless, the shareholders still hung on to faith, believing the course of change and continued on, invested and injected additional fund to sustain the resort operations. The prolonged hope and strive resulted to great substantial losses; year after year that toiled till the fourth year.

The endurance is too much to bear, left without a sustainable option, PRCC operators without choice, bite the bullet to an unavoidable and regrettable exit. The company is no longer has the ability to sustain; primarily to the weak market demand condition, many unanticipated adverse issues, the sharp drop in weekday meetings, incentives and training groups and, the ever escalating operating cost. The hidden and contributing factors can be summarized in the many areas of unanticipated hidden major defects of the apartment premises. Noticeable sunken land near elevated water tanks, at certain apartment blocks, the many underground water pipes that gave way, leaked under common and public compound, frequent breakdowns of passenger lifts at residential blocks and in accord with delayed repairs, malfunction of water-pressure pumps in most blocks resulting no water supply to both 4th and 5th floors; are reasons enough which form a part and have in a way contributed to huge reduction in rentable room to sustain.

Much uphold effort and creative initiatives were exercised during these trying periods to keep the business afloat; but to no avail. From strategic room capacity management, green & energy saving initiatives, multi-tasking staff scheduled and cost saving planned undertaking. The alarming utility bills is one of the many factors that resulted to the exit; with an alarming amount of over RM200,000 of utility charges to the landlord. This is by far the most damaging. Further search and analysis concludes to the many underground water pipe leakages at the common compound and storage tanks.  

The Board and Management of PRCC have decided to divest of its operation for it is time to move on and to proceed with minimal impact of an exit; not just towards our guest returnees but also to loyal employees and business associates.

 

With the final surrender of about 100 odd units of the apartments which is about 11% of the existing 980 units sitting on 23 acres of land bank. Needless to say the property needs another round of capital injection to steer away from a tired old building (i.e. refurbishment, interior and exterior painting and substantial upgrading work was done once in late 2012 before the approved Best Western Management). Much attention has to be put into the piping and plumbing systems, the electrical systems and the exterior facade and interior of many rooms which need another round of face lift.

 

The decision of an exit is an extremely difficult one. Much was discussed and thought through for it affects all quarter.  Business is poor and much too slow to help connect the dots; to help the company pull through to the next peak season.

 

Many a time, monetary injection was done; and it has come to a point where there is no more alternatives to grab hold of and to stay and keep this piece of business afloat. Cash flow comes to naught and owing accumulated overnight.

 

With a heavy heart, the exit plan was reviewed many times over with a mind to have the lowest / softest impact to our customers, to the ever loyal staff force, and our business associates.  

 

  

 

The Board and Management of

Prima Inland Sea Resort Sdn. Bhd.

 

July 2017