Avillion Bhd, a hotel, property, and travel group, expects to do better this year now that international travel has resumed following the reopening of borders on April 1, 2022.
Tommy Ooi, Avillion's associate marketing manager, said the group is relieved that the worst of the Covid-19 lockdown may have passed and that domestic tourism has begun.
"This enables us to re-establish our tourism footing," he told NST Property.
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In Malaysia and Indonesia, Avillion manages a beach resort and hotel chain with over 700 rooms. Among these are the Avillion Port Dickson, Avillion Admiral Cove, Avillion Villa Cinta Bali, Avillion Cameron Highlands, and the Avi Pangkor Beach Resort.
It also runs the aVi Spa at the Avillion Port Dickson, the city's most popular beach resort.
Avillion Port Dickson is Port Dickson’s most popular beach resort. Courtesy image
The group's property business is developing Desa Impian, a 165-acre township in Johor with inexpensive residential and commercial units, which is anticipated to be completed in 2028, according to its website.
"There is the confidence that domestic travel will remain strong," Ooi said, adding that people are still hesitant of travelling abroad because the process is still onerous.
In the third quarter ended December 31, 2021 (Q3 2021), Avillion recorded sales of RM13.8 million, up 189 per cent over the same quarter the previous year.
The Q3 2021's earnings before interest, depreciation, and tax (EBITDA) were RM4.35 million, compared to a loss before interest, depreciation, and tax (LBITDA) of RM657,000 in the previous quarter.
The hotel division was principally responsible for this improvement. The easing of interstate and Covid-19 restrictions in mid-October 2021 resulted in improved sales and EBITDA for the division in the third quarter of 2021.
The enforcement of a Conditional Movement Control order in the preceding year's corresponding quarter resulted in cancellations and halts of all MICE groups in the group's hotels from October 2020 to early December 2020. As a result, occupancy and revenue dropped dramatically.
According to Ooi, the group is actively seeking new avenues to expand.
This includes developing new and innovative packages as well as looking for management opportunities.
Meanwhile, despite a more hopeful perspective, Ooi said that there will be hurdles that could stifle growth in a variety of businesses.
"First and foremost, there may be a tendency of lower spending once the moratorium concludes as people begin to pay their loans. This could affect travel until they figure out their monthly budget.
"Second, the Ukraine-Russia war has produced inflation, which has led costs to rise, resulting in lower expenditure. People will prioritise essentials over luxury in their spending. As a result of the growing cost, food prices would rise.
"International tourists are yet to return despite the reopening of the borders. As a result, we will not be expecting any international visitors for at least the next year. All of these must be taken into account as a hotel and resort operator," he said.
