Mon, Apr 28, 2003 page11

• Promised Land founder juggles SARS and tourism

  Liang Ching-cheng , founder of the Promised Land Resort, opened his dream hotel last July in eastern Hualien, boasting that it is close to becoming part of the Marriott International chain of hotels. He took time out on a visit to Taipei last week to talk with `Taipei Times' staff reporter Joyce Huang about his vision of making his five-star hotel a standard of quality in the region and how he deals with an industry badly affected by SARS

  • By Joyce Huang / STAFF REPORTER
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  Taipei Times: As the newest hotel in eastern Hualien, how badly has the Promised Land Resort (理想大地) been affected by the recent outbreak of severe acute respiratory syndrome (SARS) and how has the facility coped with the fall in tourist arrivals?

  Liang Ching-cheng (梁清政): The disease may have seriously affected the Asian tourism industry and business hotels in Taipei and Kaohsiung, but its impact on our hotel business appears to be surprisingly minimal.

  This month, our occupancy rate is expected to average over 60 percent as a promotional discount knocks 52 percent off room charges.

  

  Liang Ching-cheng, founder of the Promised Land Resort gestures in front of a map of the facility.

  PHOTO: GEORGE TSORNG, TAIPEI TIMES

  In late March, the hotel cut accommodation rates by 62 percent to attract local tourists who were shying away from making overseas trips following the outbreak of SARS. The hotel's occupancy rate then remained normal at 60 percent.

  As public recognition of the hotel grows, we are actually benefiting from the disease's fallout since 98 percent of outbound trips to China, Hong Kong and Thailand have been cancelled.

  Instead, 80 percent of those contracted trips are encouraged to turn inbound within the next six months to benefit from local tourism in Hualien, Kenting and Alishan

  Opened just last July, the hotel currently greets few international tourists. But we expect the arrival of international guests to jump from the current five or 10 percent after we're incorporated in Marriott International's booking system next year.

  In addition to fully disinfecting the hotel, our strategies to combat the disease's fallout included organizing events such as religious prayer meetings to help locals and visitors conquer fears of the disease. Also, we will feature a local agricultural product -- mulberries, known for strengthening the immune system -- in meals to attract lodgers.

  TT: How has the hotel's polarized occupancy rates between weekdays and weekends improved and what do you think Hualien hoteliers can do to better promote the county's tourism industry?

  Liang: Weekday travelers hesitate to make long-distance trips to Hualien due to the inconvenience of transportation.

  However, the government's efforts to facilitate the county's infrastructure development including construction of a highway and railways, as well as expansion of a [proposed] international airport in the county, have shed some light on solving the problem in the near future.

  Also, the government-backed credit-card travel plan, launched early this year, has worked significantly to boost the county's tourism by bringing in civil servant patrons during weekdays.

  After offering promotional room rates as low as NT$3,500 per night, we're currently seeing an occupancy rate of 50 percent during weekdays while the occupancy rate continues to peak between 90 and 100 percent on weekends.

  Hualien has abundant natural resources with four national parks, including the prominent Taroko National Park (太魯閣國家公園). It is one of the best tourist attractions in Asia.

  The central and local government has realized that the county has no way out but developing tourism to stimulate its economy and create job opportunities for locals.

  As a long-term goal, I think Hualien should prepare itself for facilitating the nation's development of vacation diplomacy (渡假外交).

  That is, state guests should all be encouraged to visit the county and experience the country's natural beauty during their diplomatic trips here in Taiwan.

  I envisioned the goal some 15 years ago and strived to expand the Promised Land Resort into a full-function 250-hectare resort village surrounded by a golf course, a theme and water park and shopping districts, where visitors can stay for up to four days in the resort without getting bored.

  After the government's Development Fund (開發基金) injected some NT$800 million into the first 260-room hotel project, I'd like to further urge banks to facilitate the resort's future expansion projects by granting the syndicate loan sooner.

  TT: The Promised Land is a NT$20 billion investment project. Since you have no background in hotel management, what motivated you to build the resort in Hualien?

  Liang: Before the Promised Land, I was in the kitchenware business. My company used to treat employees to overseas sightseeing trips every year.

  I myself was very much impressed with recreational facilities in other countries and dreamed about having one of my own someday in Taiwan, if financially possible.

  I was awarded capital of some NT$3 billion when I sold off my kitchenware business and began to plan for the resort project 18 years ago.

  My wife and I traveled to over 100 resorts in the world to learn from their experience in terms of hotel design and management. I then spent two years bidding for the 250-hectare Hualien site piece-by-piece.

  As far as the technical side, is concerned, I invited the renowned Wimberly Allison Tong & Goo Architects, Planners and Consultants to design the residential units and commissioned California-based Harrison Price Co, a consulting firm specializing in tourist attractions and recreational market analysis, to conduct project research.

  Financially, we're beginning to break even in terms of our initial hotel investment while we're able to repay the first loan of NT$2 billion at three-percent interest.

  After we join Marriott International we expect to further generate new revenues by benefiting from the world-renowned hotel chain's timeshare system. (Timeshare is a concept whereby visitors pre-pay their future vacation lodging at today's prices while being guaranteed with rooms in their chosen vacation time and resorts.)

  Marriott manages the world's No. 1 timeshare business, followed by Disney World, the Hilton and the Holiday Inn chains.

  After it introduced its timeshare service in 1995, Marriott has gained nearly 120,000 owners around the world.

  I am confident the Promised Land investment project will be profitable. And most important of all, we will be a role model for hotel management in eastern Taiwan.

  TT: Taking advantage of foreign expertise, you've signed a 16-year contract with the Marriott Group to co-manage the Promised Land. How has the partnership with Marriott been helpful in upgrading the hotel's service and management?

  Liang: Before we officially inked the contract last July, the Marriott Group dispatched professionals to the hotel to advise on the hotel's facilities, management, personnel and service quality for a period of three years.

  One of their high-ranking management officials made a three-month inspection visit to the resort to ensure the hotel followed its guidelines.

  The working relationship between both parties went smoothly.

  Furthermore, we've successfully installed a Marriott computer system, which allows the hotel to link with its 2,500 hotel chains in the world while accurately calculating the hotel's daily profits and tallying the sources of patronage.

  Marriott will continue to dispatch inspectors and professionals to our resort on a regular basis, making sure the hotel keeps up with international standards in the future.

  The Promised Land will pay a royalty of six to seven percent of its annual revenues to the Marriott for professional co-management advice, including training.

  In addition, the hotel's management staff are obligated to take courses on a yearly basis to update their hotel management skills.

  As far as I know, Marriott will also secretly send inspectors to patronize its contracted partners, without their knowledge, for spot checks of the hotels' facilities including, and as detailed as the type of drinking glasses used and the quality of room cleaning services.

  Once a partner hotel fails to improve, Marriott may break its arrangement with the hotel after three warnings.

  We look forward to cooperating with Marriott, which has also expressed confidence in us.
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