KUALA LUMPUR: Berjaya Tioman Resort at Pulau Tioman in Pahang is due to close on June 15.
The resort on its Facebook page said its operations are ceasing 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," it said.
"Our hearts go out to those who are affected by this closure," said the notice.
"It is with deep regret 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 notice further stated 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, which comprises 268 rooms and suites, is managed by Berjaya Hotels and Resorts, which is a division of Berjaya Land Berhad.
Berjaya Land is a subsidiary of Berjaya Corporation Berhad.
In Malaysia, the company owns hotels and resorts in Kuala Lumpur, Johor Baru, Penang, Langkawi, Pulau Redang and Bukit Tinggi.
Its website also lists hotels and resorts it owns in the Philippines, Sri Lanka, Seychelles, the United Kingdom and Japan.