The Berjaya Tioman Resort on Pulau Tioman in Pahang will close permanently on June 15.
The resort announced on its Facebook page the decision to cease operations is due to the Covid-19 pandemic which has adversely impacted the tourism industry.
“Throughout this closure, the management will embark on a much-needed major redevelopment to revitalise the resort which is more than 50 years old.
“Our hearts go out to those who are affected by this closure,” the hotel’s management wrote.
It added that retrenchment will be carried out and all affected employees will be fairly compensated in accordance with the Collective Agreement and the Employment Act, amounting to a compensation of more than RM8 million.
The announcement also said that upon completion of the redevelopment exercise, the management would consider offering new employment opportunities to all its affected employees.
“Thank you for your dedication and for staying with the resort through thick and thin,” it added.
The four-star resort, located in Kampung Tekek, one of Tioman Island’s many sub-island tourist spots, comprises 268 rooms and suites, and is managed by Berjaya Hotels and Resorts, which is a division of Berjaya Land Berhad.
Berjaya Land is a subsidiary of Berjaya Corporation Berhad.
Berjaya Resort Hotels and Resorts also manages and owns hotels and resorts in Kuala Lumpur, Johor Baru, Penang, Langkawi, Pulau Redang and Bukit Tinggi.