THE DEMAND AND SUPPLY OF GOODS AND SERVICES IN THE HOSPITALITY INDUSTRY
STUDENT: JUSHTICE PIUS
LECTURER: MR FREDERICK LO VUI HAN
DUE DATE: 22 FEB 2013
TABLE OF CONTENTS
3. Demand and Supply
4. Own opinion
We will be focusing on the Hotel industry in Sabah for the accommodation of tourists visiting Sabah. Also we will understand the demand and supply for the goods and services that is available, whether it is a positive or negative one for the economy of the state and how it will be contributing to the people.
If any sector of Sabah’s economy has been more positively impacted than others by the Sabah Economic Development Corporation (SEDCO), it is the services sector. The successes achieved by SEDCO over forty years and the current pattern of Sabah’s economic progress testifies to this. Today the services sector accounts for almost 50% of the State’s GDP and employs some 640,000 persons or 53.3% of the work force. Hotel
SEDCO has a notable presence in the State’s booming hospitality industry. The Hyatt Regency Kinabalu in downtown Kota Kinabalu is the most prestigious of the hotels owned by SEDCO. It began operations in 1976 as the Kinabalu International Hotel and SEDCO acquired majority share in the hotel in 1978. SEDCO owns 57.3% of the shares and the State Government 42.7 %. Hyatt Regency Kinabalu offers guests the full range of hotel services and facilities one can expect of a hotel of its kind anywhere. It has a Presidential Suite, 16 suites, 5 restaurants, a banquet room for up to 400 people, several function rooms, bars and lounges, a fitness centre & spa, and a swimming pool. In order to remain competitive and hold on to its already excellent market share and reputation in these very challenging and competitive times, the hotel underwent extensive renovations in 1997/98 and 2010. SEDCO’s wholly-owned subsidiary Perkasa Hotels Holdings Sdn. Bhd. (PHHSB), incorporated in 1979, owns and operates three resort type hotels at Kundasang, Keningau and Tenom. These hotels were essentially set up to provide accommodation for government officials and the occasional travelers to the interior of Sabah. When the tourism boom hit Sabah, PHHSB was quick to adapt its marketing strategy for its share of the tourist market. Starting with Kundasang, a rebranding exercise was undertaken. Appropriately renovated with added facilities and renamed the Mt. Kinabalu Heritage & Resort Spa, the former Perkasa Hotel Kundasang is SEDCO’s proud flag-bearer for SEDCO in the hospitality sector in the state’s interior and the renowned Mt. Kinabalu World Heritage Site. The Perkasa Hotels at Keningau and Tenom are also slated for renovations and upgrading in stages to enable these to also tap into the lucrative tourism sector. The newest addition to the hotels owned by SEDCO is the Promenade Hotel Tawau which opened for business in 2009. Part of the Kuhara Point integrated commercial development undertaken by its fully-owned subsidiary, Sabah Urban Development Corporation Sdn Bhd (SUDC), it is now a prestigious landmark in the thriving east coast town. A fifth hotel will join the SEDCO stable when the RM320 million joint-venture South China Sea Place project in Kota Kinabalu is completed later this year. This prestigious integrated development undertaken through SUDC will incorporate a 174-room 4 star hotel, 478 Hotel Suites with leaseback option, business suites and commercial shop lots. Looking beyond the business factor and tapping into the tourism market, SEDCO’s hotel business has given the localcommunity a meaningful stake in the industry by providing jobs and opportunities for career advancement to young Sabahans. Many of them who started their careers at the hotels owned by SEDCO have moved on to better or higher positions in intentionally known hotel chains,...