PETALING JAYA: The management of Berjaya Tioman Resort today announced that the popular island resort will be closing on June 15.
In a statement, it attributed the closure to the Covid-19 outbreak which has had a heavy impact on tourism.
It said retrenchments would be carried out, with employees to be compensated in accordance with the collective agreement and the Employment Act.
This compensation will amount to over RM8 million.
“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 have been affected by this closure.”
Once the redevelopment is complete, it said, new employment opportunities will be considered for staff who were retrenched.
A number of hotels, including five-star properties, have ceased operations due to Covid-19 and the ensuing movement control order.
FMT previously reported that some hotel building owners were even looking to sell off their properties due to the bleak prospects for tourism.
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