July/ August 2012 - Orchid Country Club

4
Dear Members,
2011 was a challenging year clouded with high inflation and news of
uncertain global economic outlook. The Club had continued to focus on
improving and upgrading facilities, and enhancing membership value for the
past year, albeit in a financially prudent and sustainable manner.
Over the last 12 months, the Club has invested substantially on facilities
improvement and upgrading which included refurbishing the Grand
Ballroom, relocating and upgrading Jackpot Royale, replacement of buggy
batteries, repairing of building structure and replacing malfunctioned
equipments due to wear and tear over the last 18 years of heavy usage. Each
year, the Club sets aside funds reserved for facility repairs and enhancement
to undertake the upgrading, repairs works as and when required in order to
maintain the service standard. As the facilities are showing signs of age, we
plan to step up upgrading or repair works primarily for members’ benefit.
Better facilities will also help attract more events and banquet functions to
be held at OCC, which translates into higher revenue for the Club.
Leasehold premium will be due for review at the end of next year and we
are expecting the lease premium to increase quite significantly. The Club
was also hit with an increase in additional property tax payable as a result
of revision in annual value, and we are still in the midst of appealing to the
authorities.
In addition to the above property costs, the Club continued to face cost
pressures from higher utilities and manpower costs. Despite energy saving
measures taken to manage electricity consumption, the costs continued to
escalate due to higher electricity tariffs, something that we have no control
over. Manpower costs will continue to rise as well, especially with the recent
government calls to help the low wage workers.
With the escalating Club operation costs and the need for substantial capital
expenditure to maintain and upgrade facilities, generating higher revenue
and achieving better productivity shall remain the key focus for the General
Committee and Management going forward. We will need to stay financially
viable to do more for members.
One of the recent initiatives that the Club had undertaken to cushion the
negative impact generated by the opening of two integrated resorts (IRs)
in 2010 was the relocation of Jackpot Royale to a new premise. The newly
renovated jackpot room and new jackpot machines that were installed
had enhanced members’ playing pleasure. The effort has certainly paid
off as evidenced from the increase in patronage from members. Members
are also full of praise for the newly acquired jackpot machines which are
comparable to what IRs are offering.
To enhance membership value, the Club has also brought in new
renowned tenants such as Gayatri Restaurant and Cristofori Music
School to offer members more variety of products and services in OCC.
Members enjoy exclusive discounts at the outlets and Management will
also be working closely with them to provide interesting activities for
members. The Club’s financials have also benefited with the additional
rental income collected.
The reciprocal and access arrangements with overseas clubs have
been intensified, and we are pleased to update that we now have
50 reciprocal and access arrangements with social and golf clubs
globally. More social activities such as drive trips or group excursions
to neighboring countries have also been organized for members’
participation. Be assured, we will continue our efforts to create more
activities and programs for members.
Last but not least, as members of the Club, we need you to come
and enjoy the facilities as often as you can to make our efforts and
investments worthwhile.
david poh
treasurer