1. SCHOOL OF
BUILDING AND DESIGNBACHELOR OF QUANTITY
CONSTRUCTION OF SUPPLY CHAIN
MANAGEMENT ( MGT 60803 )
NAME : TEE WAN NEE
STUDENT ID : 0325074
PROJECT TITLE : TU MARRIOTT HOTEL
LECTURER NAME : MS. TAY SHIR MEN
2. COMPANY PROFILE
TUPDG, TU Property Development Group is a public listed Malaysian company involved mainly in
property development and has provided workforce solution to customer in a variety of industry
throughout the history.
It is a fully integrated company that undertakes the plantation and resource-based manufacturing
businesses. The plantation businesses covers Malaysia and Indonesia with a land bank of more than
100, 000 hectares, making it one of the largest plantation owners in the industry. With its hands-on
management approach and good agronomic practices, TU is ranked highly among the most efficient
major plantation owners with one of the largest oil yields in the industry.
The brand, TU is being spread across three key economic regions in Malaysia with 18 development
projects in total that include in new township, integrated commercial developments, luxury high rise
apartments and green business parks. The Group presently has approximately 15, 930 acres of land
bank in Malaysia with a gross development value (GDP) of RM 25.35 billion.
The Group is helmed by some of the most well-known and respected industry players in the
Malaysia property sector Driven by its vision of Being the No. 1 Sustainable Property Developer in
Malaysia and Beyond and powered by an experienced and dynamic team, TU is set to soar higher in
the years to come.
Our unique approach to property development and passion for quality is what drives us to
constantly design and build exciting and successful build projects.
Serving customers diligently in meeting heir requirement and delivering value for the investment
and aiming to acquire substantial land bank within Klang Valley to grow our revenue and
profitability to meet our vision
3. MAJOR PAST PROJECTS
PUTRAJAYAAn urban oasis nestled in Precinct 15 of
Putrajaya inspired by modern Balinese
concept with lush greenery, it is the
perfect setting for tranquil family life. The
11 acre development offers a harmonious
and refreshing environment to ease the
pressure and stress of modern living with
comprehensive, modernised facilities.
PRECINCT 9, PUTRAJAYA
Launched in 1998 as one of the first
residential developments in Malaysia's
administrative capital, Putrajaya, this
mixed development comprises 2-storey
terraced homes, apartments and
DUTA TROPIKA, KUALA LUMPUR
Launched in 2004, this 13-acre high-end
gated community, comprising 138
courtyard and garden villas within a
resort-style environment, is situated
adjacent to Duta Nusantara in the
exclusive neighbourhood of Sri Hartamas.
4. BACKGROUND OF BANDAR UTAMA
Until 1991, the Bandar Utama Damansara area was originally consisted of palm oil estates with a
population fewer than 100 people. Bandar Utama story began in the late 1980s when See Hoy Chan
Holdings Group, one of the foremost property developer in Malaysia, conceived an idea to build a
township that would address the increasingly sophiscated expectations of Klang Valley dwellers.
Modernisation of the area was made with the opening of Sri Pentas, TV3 broadcast centre which
was officially opened on 22 October 1996, as well as the 1 Utama Shopping Centre, which became
increasingly well known after the Jaya Jusco chain of department stores.
With the opening of several new schools in 1997 and 1998, as well as the establishment of Kolej
Bandar Utama, a tertiary institution, Bandar Utama Damansara continued to grow. In 2004,
additional residential precincts of BU7, BU10 and BU6 (comprising 2½-storey houses) were
completed. These are newer sections of Bandar Utama Damansara compared to the older sections,
BU1 until BU4, which were completed in phases beginning from 1991 until 1996
It has now became an affluent residential township located within Damansara subdivision of
Petaling District, Selangor, Malaysia. Furthermore, it is also a residential suburb and home to the
popular 1 utama shopping centre. As of 2004, there are 59,040 people residing in Bandar Utama
Damansara. The primary residents appear to be Chinese followed by Indian and Malay. However,
there were nearby squatter settlements of illegal immigrants in the neighbouring Kayu Ara village
which is enclosed by Bandar Utama Damansara and Damansara Utama. They have now mostly been
relocated to nearby low-cost flats and their squatter houses demolished to make way for legal
Not only that, there are also places of worships in Bandar Utama such as Grace Assembly,
Damansara Utama Methodist Church and also surau for the Muslims at BU 3 and also Bandar
Utama Damansara Buddhist Society for the Buddhist.
Also in addition to 1U, the opening of several new schools in 1997 and 1998, as well as the
establishment of Kolej Bandar Utama, a tertiary institution, Bandar Utama Damansara continued to
push the district to grow even further.
In addition, Bandar Utama Damansara, like most of Damansara, falls under the jurisdiction of the
Majlis Bandaraya Petaling Jaya (Petaling Jaya City Council). Like the rest of Damansara, it too falls
under the parliamentary constituency of Subang, and thus is represented in parliament by Sivarasa
a/l K. Rasiah. In the State Assembly of Selangor it is represented by Wong Keat Ping of the Parti
Keadilan Rakyat political party under the constituency of Bukit Lanjan.
5. BU 11 AND
DEMOGRAPHICS IN BANDAR UTAMA
As of 2004 it is estimated that there are 59,040 people residing in Bandar Utama Damansara.
The primary residents appear to be Chinese followed by Indian and Malay. However, there
were nearby squatters settlements of illegal immigrants in the neighbouring Kayu Ara village
which is enclosed by Bandar Utama Damansara and Damansara Utama. They have now mostly
been relocated to nearby low-cost flats and their squatter houses demolished to make way for
BU 1 TO
Bandar Utama Damansara is roughly 1000 acres (4 km²) in size, and is divided into 12 sections
ranging from BU1 to BU12. These sections are served by roads, e.g. Jalan BU2/5 where "Jalan"
is a Malay word meaning road, BU2 is the section and 5 is the road number. Houses on one side
of the road have even numbers, and the other side odd numbers, so one side of a road will
consist of houses with numbers 2, 4, 6, 8 and so forth while the opposite will have houses
numbered 1, 3, 5, 7 and so on.
A bridge over the Sprint Expressway joins the two parts of Bandar Utama Damansara, sections
BU1 until BU10 and BU11 with BU12, which are separated by the expressway.
To go to Bandar Utama Damansara, via the northbound route of New Klang Valley
Expressway (NKVE), you should see the 1 Tech Park on your left, right after the toll plaza.
Continue straight, all the way down until you see an intersection on your left leading
to Damansara Jaya. Make a U-turn here and continue. Just before you see the toll booth again,
go up the ramp on your left. At the traffic light you can opt to turn left to go to BU11/BU12 or
to turn right to head to the BU1 until BU10.
If coming from the Lebuhraya Damansara-Puchong (LDP), look out for Taman tun Dr Ismail on
your left. When you see the intersection leading to it on your left, turn right instead towards
the 1 Utama shopping centre, and Bandar Utama Damansara. If coming from the opposite
direction, look out for the pink facade of 1 Utama on your left and turn left at the appropriate
TU Marriott is located between Ikano Power Center, One Utama Shopping Center and also Empire
City Damansara where people can try the Olympic sized ice skating. Tourists can get to TU Marriott
by public transports which is also one of the easiest way to go around without having a car or
renting a van with a higher price.
FIRST OPTION OF
Taking the MRT to the Bandar Utama station and walk about approximately 10 minutes to reach TU
SECOND OPTION OF
Taking the LRT to the Kelana Jaya station (KJ 24) and and take a shuttle bus to TU Marriott from the
7. THIRD OPTION OF
- Aeroline, Five Star and Transtar
From Genting Highlands
- Genting Express
- Aeroline, Five Star and Transtar
FOURTH OPTION OF
TU Marriott is accessible through 2 highways which are the New Klang South Expressway (NKVE) and
also Lebuhraya Damansara-Puchong ( LDP)
TU Marriott is surrounded with shopping malls such as IKEA, the Curve, Ikano Power Centre, One
Utama, Empire City Damansara, Empire Damansara. There are also free bus services from the Curve
to Bintang Walk which is very convenient for the residents as well as tourists.
Furthermore, there is also one golf and recreation club which is located at Bandar Utama
Damansara. It has a 9-hole golf course with night golfing facilities and it is popular among the
residents not only from Bandar Utama Damansara but areas surrounding Bandar Utama Damansara.
8. GENERAL DETAILS OF PROJECT
TUPDG, currently has access to approximately 10 acres of landbank beside One Utama. The land is
located at the address Bandar Utama City Centre 1, Lebuh Bandar Utama, Bandar Utama, 47800
Petaling Jaya, Selangor.
TUPDG has currently planned to use this 10 acres of landbanks to build a building which can be
used by everyone which is either condominium, landed houses, hotel, shopping mall, SoHo, or the
Address : Bandar Utama City Centre, 1, Lebuh Bandar Utama, Bandar Utama, 47800
Petaling Jaya, Selangor
Coordinates : 3.154070, 101.613845
9. Market segmentation is a process of dividing a broad consumer or business market, normally
existing and potential customers, into sub-group consumers based on some type of shared
characteristics. There are a few types of segmentation base which are the demographic,
geographic, psychographics, behavioral, contextual and situational.
SEGMENTATIONIt divides market according to the geographic criteria. In practice, markets can be segmented
as broadly as continents and as narrowly as neighbourhoods or postal codes. Typical
geographic variables includes country, region, population density, city or town size and also
climatic zone. Geographic segmentation may be considered the first step in international
marketing, where marketers must decide whether to adapt their existing products and
marketing programs for the unique needs of distinct geographic markets. Tourism Marketing
Boards often segment international visitors based on their country of origin.
SEGMENTATIONIt is based on consumer-demographic variables sich as age, income, family size and socio-
economic status. Demographic segmentation assumes that consumers with similar
demographic profiles will exhibit similar purchasing patterns, motivations, interests and
lifestyles and that these characteristics will translate into similar product/brand preferences.
The variables can be described as age, gender, occupation, social class, marital status, family
life-stage and income.
SEGMENTATIONIt is can sometimes be called lifestyle segmentation and is measured by studying the activities,
interest and opinions. Psychographics is a very widely used basis for segmentation, because it
enables marketers to identify tightly defined market segments and better understand
consumer motivations for product or brand choice.
It divides consumers into groups according to their observed behaviors. Its can be varied into
purchase, benefit-sought, user status, usage rate, loyalty status, buyer readiness, attitude to
product or services and adopter status.
10. MARKET SEGMENTATION
Damansara is a township in Kuala Lumpur, Malaysia which straddles the state border into
Damansara, Petaling Jaya, Selangor. It is located mostly in the constituencies of Segambut and
Lembah Pantai. Not only that, Damansara is a central of commercial hub and houses several
affluent residential areas. As the place is filled with mostly residential houses, tourists and locals
from other district would find it difficult to find a temporary space to live near to the area. Thus, it
would be most suitable to build a hotel as there are too many residential houses around that area
and if we still build a landed house, it will cause the price to fluctuate.
As for what kind of purpose that we are trying to do and whom we are trying to direct to, we have
already made a market segmentation to three groups which are the backpackers, family holidays
and also business trips to choose the types of rooms such as single bed room, double bed room,
duplex room, interconnecting room and also business suite that are needed in a hotel for TU
Marriott. Market segmentation is a process of dividing a broad consumer or business market,
normally existing and potential customers, into sub-group consumers based on some type of
shared characteristics. There are a few types of segmentation base which are the demographic,
geographic, psychographics, behavioral, contextual and situational. As for this segmentation, we
have used demographic segmentation because it is according to demography based on consumer-
demographic variables such as age, income, family size and socio-economic status.
Therefore, for backpacker, we have segmented into age from the range 22 – 40 years old and
budget of RM 60 – RM 120 with the number of 1-3 pax. Next, as for family holidays, we have also
segmented into sizes of families such as family with kids and elders and also couples with the
number of people from 2 pax to the pax of 9 and above within the budget of RM 100 – RM 900
and above. In addition, for business trip group, we have also segmented into the number of pax of
1 – 6 people and within the budget of RM 500 to RM 1000 and above.
Not only that, to add in a plus point for TU Marriott, we have also added some facilities such as
swimming pools with Jacuzzi, parking spaces, jogging track, pergola and also transportations which
are very efficient to bring the guests around without any worries that there are no transportations
around or the highly cost of transportation if there are too many paxes.
11. Target Market Segment Hotel
Types of Rooms
Single Bed Room Double Bed Room
Interconnecting Room Duplex Room Business Suite
Budget (RM) 60 - 80
80 - 100
Pax 1 - 2
2 - 3
Family Holiday Size Family with Kids
elders and kids
Budget ( RM ) 100 - 300
300 - 600
600 - 900
Pax 2 – 5
6 – 9
Business Pax 1 - 3
3 - 6
Budget 500 - 1000
Total 6 10 7 4 4
Single Bed Room Double Bed Room Interconnecting Room Duplex Room Business Suite
RESEARCH ON THE TYPES OF ROOMS BASED ON TYPES OF TOURISTS
Single Bed Room Double Bed Room Interconnecting Room Duplex Room Business Suite
Another major decision in developing the segmentation strategy is the selection of market
segments that will become the focus of special attention. The marketer faces a number of
important decisions such as what criteria should be used to evaluate markets and also how many
markets to enter or which market segments are the most valuable ones.
According to the research that has been done by the staffs and members on the guests of TU
Marriott, based on the types of tourist which are from the three groups, backpackers, family
holiday and also business traveler, the above chart are the results of the types of the hotels that
they would live in.
Most of the travelers that would travel to the Damansara Utama area are for family holiday and
also business travelling purposes. Most of the families are from the family with kids and also family
with elders. Not only that,the budget that the families would use on the hotel are between RM
300 – RM 900 based on the size of the family and the number of pax. For instance, if the number
of pax are 2-5, which would probably from the two targets that we’ve set, family with kids or the
family with elders, the budget would be RM 300 – RM 500 and they would most probably stay in
the themed double bed rooms or the interconnecting rooms.
On the other side, for the business travelers, most of the business travelers would use RM 500 -
RM 1000 to stay in a hotel. This is because they would probably live in the business suite to have a
more comfortable stay after a long meetings or presentations. Not only that, they would also
probably choose to stay at the single bed room or the business suite.
In addition, as for a hotel there would be various of rooms, so, as it can be clearly seen from the
table above, double bed room and interconnecting room are the top 2 highest from the research.
As for a hotel there should be various rooms so that guests have more choices, so we have added
single bed room and business suite into the target for the businessmen so that they are able to
find a place to stay if they were to work abroad for 2-3 day or even weeks if they have events and
etc. Single bed room and business suite are mainly for the business trip guests when the guest
doesn’t want to stay in a business suite, they can choose to stay in the single bed room to save
their cost more.
13. TU Marriott is a hotel development project which consists of 3 blocks 2 with 26 floors which is
mainly for family rooms and 1 block (Tower 3) with 5 floors which is mainly for the businessmen to
stay in. Not only that, as it is located at a strategic place, which is next to One Utama Shopping Mall,
guests are able to go to One Utama shopping mall within a 5 minutes walk from TU Marriott through
a underground pedestrian tunnel which is being built with the cooperation of One Utama and also
The breaking down of the rooms on each floor are 6 floors of single bed rooms with the amount of
300 rooms, 12 floors of 360 double bed rooms each floors on each tower and 6 floors of 20
interconnecting rooms on each tower and 5 floors of 40 business suites. The single bed room and
also the business suite is located at Tower 3 and the double bed rooms and interconnecting rooms
will be located at Tower 1 and Tower 2. The reasons why there are 2 towers for family holidays and 1
tower for businessmen because we are planning to give ease and comfort to the businessmen as
they would not like to be disrupted by the families as they might just finish a long day.
In addition, there would be conference rooms and also meeting rooms in Tower 3 for the
businessmen to hold meetings and conferences. As for Tower 1 and Tower 2, there would be halls
for wedding occasions and also events. As for Tower 1 and Tower 2, rooms will start from level as
level 1 is for the receptionist and level 2 is for restaurants and level 3 is for halls. Not only that, for
Tower 3, the rooms will start from level as level 1 is for receptionist, level 2 is for restaurants, level 3
is for meeting rooms and level 4 is for conference rooms. Parking bays will be located Tower 4 with
10 floors of 400 parking bays mainly for the hotel guests.
The room towers were being built in octagonal shapes with a reason to give the guests the most
beautiful view from different perspective. Not only that, there are a various facilities that are to top
standard which is available for the guests to accommodate such as the swimming pool which comes
with Jacuzzi, badminton court, playground, pergola at the mini park, barbeque area and also a bar
mainly for the adults who wanted to try the Malaysian bar with live bands that the guests can relax
but doesn’t want to go too far for it. Not only that, TU Marriott is also being surrounded by a 3-tier
security with a high maintenance of 24 hours security system, CCTV surveillance on every block.
OVERVIEW OF HOTEL
15. PLANS OF THE ROOMS
DOUBLE BED ROOM SINGLE BED ROOM
INTERCONNECTING ROOMBUSINESS SUITES
16. ASSESSMENT OF VALUE ADVANTAGE
Hotels are very common in every country which aims to serve and give the best “temporary
accommodation” to the guests and make them feel as if they are staying in their own home. Thus, it
has come to a point that the guests want something new for the “temporary house” they are staying
in, therefore, in TU Marriott, guest could experience a whole new technology and also front service
from the hotel.
In the 21st century, mobile phone has become a “close friend” to humans. It has become as easy as
that everything can be done in from the mobile phone. Thus, in TU Marriott, we have come out with
a new technology where guests can unlock their door from their mobile phone which makes the
mobile device as a door key for them. The only thing that they have to do is just only getting the NFC
or the QR code from the receptionist instead of having a card and having to pay for penalty if the cad
In addition, once you have entered the hotel room, you can also control the lights and all the air-
conditioner by just a few touch from the mobile phone. Guests can pair the QR codes that are
available in the room and start controlling the temperature and also the lighting in the room with
just a few touch from their phones for them to experience. Not only that, requests such as morning
call from the receptionist desk can also be done just by a click from the mobile phone.
Next, we also have swimming pools with Jacuzzi which can help the elders to relax while swimming.
Other than that, we also have a playground which can be connected to the swimming pool. This
enables the children to have the fun of the playground and also swimming pool.
ASSESSMENT OF MARKET OPPORTUNITIES
Many of the tourists would find it a difficulty to move around in the country especially to find a
particular place. Many would always give up on using the public transports around finding their own
hotels and use the cab as an easier option. Thus, in TU Marriott, it is a worry free matter as we do
provide a cab in advance to pick up guests from the airport to avoid the nuisance from taking the big
luggages and moving around with the elders or to get more worst with kids running around and
worrying that they will get hurt.
Furthermore, short distance to the public transport also brings TU Marriott to a plus point. This is
because guests can move around Kuala Lumpur and also the tourist attractions reachable by public
transports such as the Pasar Seni, Petaling Street and also Dataran Merdeka easily by the MRT and
Not only that, in TU Marriott, we also do provide a tour van with really reasonable prices as low as
RM 400 per van for a day which will bring the guests to the places of attractions.
17. ASSESSMENT OF CURRENT TREND
Malaysia’s tourism industry is indicating signs of recovery in 2016 with latest figures showing
more tourists visiting the country after the slowdown in 2015.
Tourist arrivals to Malaysia for 2016 registered a hike of 4.0% compared to the same period in
2015. The country received 26.8 million tourists compared to 25.7 million tourists in 2015.
Correspondingly, tourist receipts rose by 18.8%, contributing RM82.1 billion to the country’s
revenue against RM69.1 billion in 2015, which translates to an average per capita expenditure of
RM3.068.2. Total receipts in shopping also recorded positive growth, with RM26 billion in 2016
compared to RM21.6 billion in 2015, an increase of 20.3%. The average length of stay of a tourist
increased 0.4% in 2016 to 5.9 nights.
The top 10 tourist generating markets to Malaysia in 2016 were Singapore (13.3 million),
Indonesia (3.1 million), China (2.1), Thailand (1.8 million), Brunei (1.4 million), India (0.64 million),
South Korea (0.44 million), the Philippines (0.42 million), Japan (0.41 million) and the United
Kingdom (0.40 million).
The ASEAN region continued to be the largest contributor of tourist arrivals with a 75.8% share of
the total arrivals. Thailand registered the highest growth of 32.5%, followed by Laos (+27%),
Brunei (+22.7%), Indonesia (+9.4%) and Singapore (+2.6%).
The medium-haul markets contributed 18.5% share of Malaysia's total arrivals. Markets that
registered positive growth included China (+26.7%), Saudi Arabia (+24.2%), Iraq (+12.1%), Taiwan
(+6.2%) and South Korea (+5.5%).
Tourist arrivals from the long-haul markets reached 5.8% share of the total arrivals to Malaysia.
Malaysia’s stronger tourism performance in 2016 is attributed to improved flight accessibility and
travel facilitation, as well as the foreign exchange rate.
18. PROPOSED PROJECT DETAILS
After a period of growth of tourist arrivals averaging 3.2% during 2009-13, Malaysia had a record
year in 2014 with 6.7% growth; this was just short of the 28 million international tourist arrivals
targeted by the national tourism campaign, Visit Malaysia Year 2014. Compared to 2013, tourist
receipts increased by 10.0% in 2014.
However, the international tourist arrivals dropped by 8.6% in the first quarter of 2015 as
compared to the same period in the previous year. The decline is largely due to a combination of
internal and external issues such as the impact of the plane tragedies, the drop in arrivals from
immediate source markets because of flooding issues in parts of Malaysia, and the increase in
tourism competitiveness of other regional countries, for example, Japan and South Korea.
The international arrivals in the mid and long haul may be further impacted by the cut down in
flight numbers by the Malaysian national carrier. In response to the plane tragedies in 2014 and its
previously unprofitable expansion, the national carrier had to undergo restructuring in an effort to
boost profitability. The restructuring saw its international seat capacity reduce by 18% from
307,000 in 2014 to 252,000 in September 2015.
As per estimates from leading agencies such as Euromonitor, Malaysia is expected to witness a
steady growth of 4.5% per annum in international arrivals for the medium term till 2018.
Considering the 25% cut in current national tourism promotion and advertising budget, Malaysia is
expected to take a more targeted approach to promote travel from emerging key markets such as
India and China
FIGURE 1 : INTERNATIONAL ARRIVALS AND RECEIPTS (2000-18F)
Source : HVS Research Malaysia Tourism Office, Euromonitor 18
19. International Source
In 2014, ASEAN travellers make up 74.3% of all international visitations to Malaysia. Singapore was
the largest international feeder market for Malaysia, contributing approximately 50.7% (or
13,932,967 arrivals) of all international arrivals. The low cost of goods and services in Malaysia and
good connectivity via land and air attract multiple visits from Singaporeans. The proposed
Singapore-Kuala Lumpur (KL) high-speed rail project (expected in 2020) and the Singapore-Johor
Rapid Transit System (expected in 2018), will improve connectivity between Singapore and
Singapore, Indonesia, China, Thailand, and Brunei are the top five international source markets for
Malaysia. China was the third major source market in 2014 and 1Q2015. However, Chinese arrivals
experienced a sharp decline in 2014/2015, which is attributed to the loss in travel confidence
owing to the three plane tragedies and the abductions of Chinese in Sabah. In an attempt to
bolster travel from China, the Malaysian government implemented a visa fee waiver scheme
(applicable from 15 February 2015 to 31 December 2015) for Chinese nationals; however, the
success of this waiver can only be gauged at the end of this period.
FIGURE 2 : MAJOR
Source : Malaysia Tourism Office
COUNTRIES NUMBER OF VISITORS
SINGAPORE 6, 596, 452
INDONESIA 1, 378, 699
CHINA 922, 463
THAILAND 864, 453
BRUNEI 637, 369
INDIA 359, 853
SOUTH KOREA 228, 023
THE PHILIPPINES 220, 163
UNITED KINGDOM 206, 313
JAPAN 198, 693
TABLE 1 : NUMBER OF VISITORS
TO MALAYSIA IN 2015
Source : Malaysia Tourism Office
20. Domestic Arrival
Domestic tourism is an important component of Malaysian tourism with nearly 90% of the
domestic trips made for leisure purposes. The top four destinations for domestic travellers, based
on 2014 figures, are the states of Pahang, Kuala Lumpur, Sarawak, and Sabah. Pahang
accommodated eight million or 17.7% of all domestic stays in classified hotels while Kuala Lumpur
followed close behind with 14.5% (6.6 million )
The growth in domestic tourism is not limited to the top four destinations, with the highest growth
being recorded in Labuan (140.6%); the domestic travellers increased from 239,843 in 2013 to
577,120 in 2014. Selangor ranked second in domestic tourism growth rate with an increase of
53%, from 1,610,726 in 2013 to 2,466,995 in 2014. This positive growth bodes well for Malaysian
tourism and maybe attributable to efforts in better promotional activities and upgrades in
transport and tourism infrastructure.
Domestic travel peaks during school holidays in March, May and August while more outbound
travel is recorded during the longer year-end holidays. Domestic travels’ average length of stay has
been recorded at three days, and these travellers tend to be more price sensitive than
FIGURE 3 : PERCENTAGE DOMESTIC HOTEL GUESTS
ACCOMODATED BY STATE (2014)
Source : Malaysia Tourism Office
21. Hotel Demand
The hospitality market in Malaysia witnessed approximately 71,666,295 hotel guests staying at
properties across the country in 2014, of which nearly 63% comprised of domestic travellers.
Commercial accommodations (hotels, bed & breakfast, etc.) are the top choice for international
travellers to Malaysia with almost 96% of the arrivals utilising commercial accommodation in
Although hotel demand in 2015 slowed down together with the drop in arrivals, the long-term
demand for hotels remains resilient given that the country is still an attractive destination with
several gateway cities such as Kuala Lumpur, George Town, and Johor Bahru. Previously, the
Commercial and MICE travel segment was fuelled by large primary and secondary industries that
specialised in oil and petroleum products. However, shifts may occur due to the weak
performance in the oil market and the new drivers are expected to be from the financial and
consumer products sectors.
The national tourism campaign in 2015, the Year of Festivals, focuses on festivals and exhibitions,
promoting the attractiveness of Malaysia as a MICE destination in the South East Asian region. This
is expected to induce demand for MICE and Leisure travel. Kuala Lumpur, in particular, is a vibrant
MICE location in the region by virtue of good infrastructure, international connectivity, cost
competitiveness and a wide array of facilities (convention centre, retail, F&B etc) and
FIGURE 4 : MALAYSIA HOTEL
Source : Malaysia Tourism
In the hotels and rooms supply report by the Malaysian
Tourism Office for the year 2014, a total of 4,072 classified
hotels, which account for 262,021 rooms were recorded.
During 2010-14, Malaysia’s hotel supply grew by a CAGR of
14.5% in terms of hotels and 11.7% in terms of rooms. The
states of Sabah (533 hotels), Johor (509 hotels), and Pahang
(424 hotels) have the highest number of hotels in the country,
with an average inventory of 60 keys.
Of the existing hotel supply (by number of hotels) in Malaysia,
22.7% is branded and affiliated with an international company
while the rest comprises of independently run operations. The
branded hotels are mostly located in Kuala Lumpur, along
famous tourist attractions in coastal areas such as Langkawi,
Penang and the key cities of East Malaysia such as Kota
Kinabalu and Kuching.
22. Hotel Performance
From 2011 to 2013, demand for Malaysian hotels remained stable despite the continued increase
in tourism accommodation*. In 2014, however, the additional supply (+978 hotels) with 52,500
rooms (25% growth) could not be absorbed by the rising number of incoming tourists leading to a
simultaneous drop in hotel occupancy and average rate.
The repercussions of the significant addition to supply combined with the Malaysian Airlines
incidents impacted Malaysia’s hotel performances even further in 2015 leading to a RevPAR
decrease of 6%. While rate continued to decrease for the third consecutive year in 2016,
occupancy gained 2 percentage points.
Malaysia’s hotel performances had a solid start into the new year. With occupancy increasing by 2
points and ADR recording 4.8% increase, RevPAR in Malaysia was up 7% as of March 2017.
FIGURE 5 : MALAYSIA OVERALL HOTEL PERFORMANCE (2011-2016)
NEWS REGARDING TOURISMS
PETALING JAYA: The tourism industry contributed RM73.3 billion to the nation’s coffers last
year, says Tourism and Culture Minister Mohamed Nazri Abdul Aziz.
Attributing the revenue to his ministry’s efforts in “propelling the Tourism National Key
Economic Areas (NKEA) towards delivering commendable results”, Nazri said the ministry had
achieved 112% of its Key Performance Indicators (KPI) last year.
“The government’s decision to enable e-visa applications from China, including a visa free
option, saw immediate results with a 26.7% increase in Chinese visitors last year.
“This facility was subsequently extended to other countries like India,” Nazri said at the launch
of the Malaysia Business Events Week 2017.
Meanwhile, the tourism sector is expected to remain the third largest contributor to the
Malaysian economy this year, despite a drop in tourist arrivals.
The latest official data released by Tourism Malaysia, which was compiled with the
cooperation of the immigration department, revealed that overall tourist arrivals slipped by
0.9% year-on-year (y-o-y) until May to 10.82 million visitors compared with the first five
months a year ago, The Edge Financial Daily reported.
Based on an average of tourist arrivals for the first five months in the past five years, this year
also shows a slight drop of 0.61%.
However, the attraction of the Kuala Lumpur 2017 SEA Games held last month has not been
factored in. Nazri had previously been reported as saying that 700,000 tourists were expected
in conjunction with the SEA Games.
However, on a positive note, the Tourism Malaysia report states the number of tourists
increased from some countries, most significantly, China.
According to the report, the number of tourists coming from China has gone up by 7.8% in the
first five months of the year, compared with the same period last year.
Four out of the nine Asean countries also had such an increase with Brunei leading the way,
showing a 37.7% increase to 741,420 tourists arrivals. The other Asean countries with
increased numbers were Vietnam, Laos and Thailand.
The increase from these four countries helped to offset the reduced arrivals from the other
five countries – Singapore, the Philippines, Myanmar, Cambodia and Indonesia – and boost
overall Asean tourist arrivals by 0.62%.
Tourism brought in RM73.3 billion in 2016, says Nazri
24. MARKETING STRATEGIES
After we have already proposed the site of the site, what do we need in the hotel and what we
can do to make the guests comfortable, the next step for a company to add their revenue is to
have a market strategy whereby.
Market strategy is a section of the business plan which describes who the customers are and
how you will get word to them about goods and service we offer. Not only that, it also explains
the competitive analysis of the business you are doing.
I. Creating a social media
platformIn this generation, people are too keen of their phone and by that it indirectly means that they
would create social medias to connect to the world. Thus, we can advertise with a low budget
on the platforms. We can create some videos about the internal of the hotel and what we
provide on the video to attract more customers.
Some of the social media platforms are : Facebook, Twitter and also Instagram.
II. Creating pages in social
mediasCreating pages in social media like Facebook can also help to push the revenue of the hotel.
Not only that, guests can also pre-book the hotels that they wanted from the pages of the
social media with a few easy steps that doesn’t cause nuisance to the customers.
Creating pages can also gives chances to give the guests follow the latest updates that we have
in the hotel such as new facilities and also new technologies that can be experienced by the
25. III. Collaborating with company and giving promotion codes
The other way is to collaborate with telephone companies such as Maxis, DiGi, Celcom and
etc. Not only that, by collaborating with the telephone companies we can also give worthy
promotion codes to the guests by just downloading the telephone company’s application.
Thus, both parties can also get benefits by having the guests to download the applications and
also by attracting the guests into the hotel.
IV. Inviting influential travel bloggers
Bloggers are one of the most influential groups in the digital world. And in travel industry,
travel bloggers are one of the most trusted sources of the information on the Internet.
Travel articles written and published by the travel bloggers are topping the search ngine result
pages and making rounds on social media. That is why if they blog about our hotel, we will
have a better potential and chance to attract more potential guests.
Bloggers can be invited a few days or weeks before peak season to visit the hotel and blog
about it. Not only that, bloggers also need to be checked on their content, their number of
followers and also significant numbers of social media engagements. Their blogs are also not
supposed to be involved in unethical online marketing practices, such as spamming and
V. Managing online reputation
Opinions on every guests would be different and we would need to expect that our hotel will
receive mixed reviews on Facebooks, Google Places, TripAdvisor and other sites that are
enable for users to give reviews and rate the places they’ve been to.
Therefore, to get the best online reputations the picture that the hotel has posted must be
tally and similar to the ones that the guests would be experiencing. So, all the facilities and
services must be on the tip top conditions.
Procurement is a process of finding, agreeing terms and acquiring goods, services or works from
an external source, often via a tendering or competitive bidding process. The process is used to
ensure the buyer receive goods, services or works at the best possible price, when aspects such
quality, quantity, time and location are compared.
Procurement must be planned as part of the project. This will help ensure that the schedule allows
the project to meet regulations and obligations. Basic decisions should be summarised as a
procurement plan, which defines the main areas of client responsibility. The client adviser can help
put this plan together. The procurement plan may be part of the plan for carrying out the whole
project, sometimes called a Project Execution Plan (PEP).
There are 4 types of procurements which are :
• Traditional Procurement Method
• Design and Build Procurement Method
• Management Contracting Procurement Method
• Public- Private Partnership (PPP)
From the 4 methods of procurement, we have
chosen to use the traditional procurement method.
Traditional procurement is a common method that
has been usually used in the construction industry. It
is a method where the design work is separated from
the construction. The developer or client would
appoint an architect to complete the design and
produce specifications of the building. The
consultant team is being appointed to take control of
design and cost. Upon completion of the design,
client will appoint a main contractor to carry out the
works through bidding. The contractor then prepares
the tender documents based on the specifications
and drawings or the bill. The lowest tenderer usually
will be awarded the contract. The contractor need to
take responsibility to all the workmanship and
materials which including all works by sub-contractor 26
The reasons that we have chosen traditional procurement method is because it is done paper-and-
conversation based. Not only that, the employer would take his scheme to an advanced stage with
his professional team before appointing a contractor. In addition, to keep the work within the cost
limit and within the standard, the designer would also always advise us on the design so that the
cost can be taken care. As a new building, we would always find a method where it is safer and
cost-saving method as we are unable to bear any loss or a high price to build the hotel up. Not only
that, as it is traditional method, it would be very little risk, this is because the contractor takes the
financial risk for the construction and this is the most appropriate choice for us to take as we are
inexperienced in building a hotel.
ADVANTAGE OF TRADITIONAL PROCUREMENT
The main advantage of using a traditional approach to procurement are :
accountability due to a competitive selection
Competitive equity as all tendering contractors bid on the same basis
Design lead and the client is able to have a direct influence which can facilitate a high level of
functuality and improve the quality in the overall design
Price certainty at the award of the contract
Variations (changes) to the contract are relatively easy to arrange and manage
A tried and test method of procurement which the market is very familiar with
DISADVANTAGE OF TRADITIONAL PROCUREMENT
The main disadvantage of using a traditional approach to procurement are :
can be a timely process to produce the full contract documentation. Tender documents from an
incomplete design can be produced but can lead to less cost and time certainty and may lead to
Overall project duration may be longer than other procurement methods as the strategy is
sequential and construction cannot be commenced prior to the completion of the design
No input into the design or planning of the project by the contractor as they are not appointed
during the design stage.
Labor shortage and the impact in almost geographic location
are consistently among the most difficult challenges. A
shrinking labor is the number one challenge labor facing in the
global hospitality industry. As TU Marriott is still new in the
industry, it would be difficult for us to hire the employees as
they still doesn’t have confidence on us.
In Damansara Utama, there is one more hotel which is the
OneWorld hotel and it is a well-known 5-star hotel. Not only
that, building a hotel very near to the OneWorld hotel would
bring a huge competition for us. As we are a new hotel in that
area, people would choose OneWorld over us as they have
already been in Damansara Utama for a very long period.
Going green is now a white-hot issue in the hospitality-design
industry. People are now beginning to look at sustainable
solutions in a whole new way. The perception of green as
changed and had became a mainstream now. Therefore, in TU
Marriott we would always try to be green in every aspects
such as the lights that we are using that would go eco mode
when the guests leave the room.
Sustainable Development Calls for Green Hospitality
29. FUTURE DEVELOPMENT
As we have a huge competitor, we need to always update our technology innovation so that we
are always up to date on our technologies and also our facilities. Not only that, we can also use the
robot-staffed as the staff who would guide the guests to their rooms. This can also overcome the
shortage of the employment and also fascinate the guests
As we would overcome some of the guests to arrive in the morning after the long-haul flight, we
can also offer a luggage store if they wants to head out to shopping or what not. Not only that, the
guests can also have a room for free before their check in for them to shower and get some rest
before we get ready for their room. This would ease the guests and would not make them unease
by having to lug the luggages around after the long-haul flight and having nowhere to rest.
Being transparent in the social media would be a plus point for the hotel. Guests doesn’t like to be
feeling as if they were “cheated” when they arrived and saw that it doesn’t seem like it is what
they saw on the picture. Not only that, for the worst, guests would even give poor ratings and bad
comments that will give a huge impact to the hotel as well.
Being transparent in the industry
Green Building is a very crucial thing that is needed in a building. By making the building green is
not enough, therefore, we would impose it into the daily life of the guest such as using
technologies such as making the air-conditioner and also lights to eco-mode when the guests are
out of the room. Not only that, we would also plant more trees around the building as Bandar
Utama has more buildings and also houses, it wouldn’t have enough spaces for the trees.
Therefore, planting plants in the compound would give a helping hand to the ecosystem.
Imposing more “Green”
As TU Property Development Group has only built landed property such as residential houses, it
would be a fresh experience and milestone toward TUPDG.