Spa Business issue 2 2012 - Leisure Opportunities

© 2011 DESTINATION RESORTS AND HOTELS SDN BHD. ALL RIGHTS RESERVED
INTERVIEW
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JENNIFER HARBOTTLE » JOURNALIST » SPA BUSINESS
�arrell Metzger has a twinkle
in his eye. Mild-mannered
and mischievous, his calm
demeanour belies the task
ahead of him. As chairman
of the Executive Committee Board of Directors
for Destination Resorts, Metzger is in
charge of making sure his team delivers on
its promise – to invest in and create worldclass,
leisure and residential developments
for the Malaysian market. And to make
them profitable too.
Destination Resorts is a subsidiary of
Khazanah Nasional Berhad, the investment
arm of the Malaysian government, tasked
with developing industries that will benefit
the nation’s long-term economic interests.
Alongside its sister company, Themed
Attractions, Destination Resorts is responsible
for enticing more international travellers
to Malaysia through the development of the
country’s leisure and tourism industry.
While Themed Attractions is in charge of
creating entertainment facilities and attractions,
Destination Resorts is providing the
investment, development and management
expertise for destination resort and
hotel-related projects – all with spas – in
the region. Although they’re both run as
separate companies with their
own CEO, Metzger has a role
in each of them, ensuring
they leverage the opportunities
between the two.
He reports to Nadziruddin
Basri, the managing director
of Destination Resorts.
Metzger reports to Basri
(right) managing director of
Destination Resorts which is
part of the investment arm of
the Malaysian government
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Destination Resorts has three
integrated leisure developments
underway, all of which include
resorts and hotels with spas.
There are two in the southern
region of Malaysia in the state
of Johor, and one on the island
of Langkawi (see opposite). And
they’ve already attracted some
of the top branded resort owners
and operators around the
world such as Amanresorts,
Shangri-La and Sheraton.
Although the government’s
Economic Transformation Programme
for tourism doesn’t
specifically include a focus on
spas, Metzger knows Destination
Resorts can’t afford to ignore the
importance of this market.
“Part of having great destinations
is to have very well known,
impressive spas,” he says. “We know we need
to build off Malaysia’s natural assets to get
people to come here rather than Phuket or
Bali, so we’ll make sure we have as good or
better spa and recreation facilities as they
have in those places.” This could prove a
wise move, considering that according to
Metzger, over 50 per cent of the target
market for its resorts will be from
Europe and the Middle East, where
people expect no less than a luxury
spa as part of a five-star hotel.
This sentiment is echoed by Basri,
who says: “Destination Resorts, as a
developer of premier, integrated
developments, will position
Malaysia as an appealing
and complete holiday
destination of choice
for all travellers. We
© 2011 DESTINATION RESORTS AND HOTELS SDN BHD. ALL RIGHTS RESERVED
Darrell Metzger, chairman
of Destination Resorts’
Executive Committee
Board of Directors
We need to get people to
come here rather than Phuket or
Bali, so our spa and recreational
facilities will be as good or better
will bring out the best of our country’s natural
wonders and complement them with
world-class leisure and tourism products.”
To ensure it delivers, Destination Resorts
is exploring joint venture opportunities with
hotel partners which have a proven track
record and which have a philosophy that’s
in line with the concept and positioning of
its projects. As its goal is to become the lead
investor in resorts and hotel brands in the
country, Destination Resorts owns a “not
insignificant” shareholding in each of the
branded hotels being built.
In 2012, Destination Resorts also became
the majority (51 per cent) shareholder in
an existing hotel group called Archipelago
Hotels & Resorts. The Asia-based company
was established in 2010 and has four, five-star
hotels with spas, which it owns and manages
in Malaysia. They include The Datai Lang-
SPA BUSINESS 2 2012 © Cybertrek 2012