Reissue of Request for Proposal to Redevelop and Run "Crag Hotel" on Penang Hill

Penang governement re-issue a request for proposal (ROP) to redevelop and run the famed hilltop heritage "Crag Hotel" on Penang Hill in Penang Island.

Apart from wanting to unlock the commercial value of a historic and breathtaking site, the authorities must be commended for finding innovative tourism products for the island state.

Crag Hotel's claim to fame is that it was once a famous hotel, established by the Armenian Sarkies brothers who built the Eastern and Oriental Hotel in Penang, Raffles Hotel (Singapore), Hotel Majapahit (Surabaya, Indonesia) and The Strand in Rangoon (now Yangon), Myanmar.

Located on a hill shoulder on Penang Hill, the hotel fell into disuse after the Second World War. In 1955, the International School of Penang - or Uplands School as it is better known - leased it to operate a boarding school until 1977.

Since then, the site has become a derelict and sorry sight for visitors up on the hill.

The new bid comes on the heels of what was reported to be a failed attempt last year (2009), which was attributed to financial and technical reasons.

Just how far and successful the new bid is going to be is anyone's guess.

For those who have spent a lot of time getting acquainted with the site and Penang Hill in general, the project is one which is akin to throwing precious money into a black hole.

This is because some form of commitment, including a major financial one, is required of the state first, if it wishes to entice any investor up the hill.

For any investor wishing to plough money into a site which has so much potential, a serious infrastructure upgrade in the way of water, electricity and sewerage is needed first.

The pending environmental problems which have plagued the area due to hill land clearance and siphoning of water from the natural streams must also be addressed.

Questions are also being asked on whether a masterplan for the development of Penang Hill is in place, to determine what kind of tourists the state wants to attract to this spot.

As a location which is filled with so much history and the potential - if cultivated properly - to get on Unesco's World Heritage List, any development of Penang Hill must be carried out with care.

Apart from sharing the same history with Hong Kong's Victoria Peak which also boasts a tram as a tourist attraction, there are not that many more similarities between Hong Kong and Penang. And this is why Bukit Bendera, as the hill is also known, must not be developed as a Disneyland of Penang.

The so-called commercialisation of Penang Hill should not give developers the green light to build towering blocks, in order to ruin the outstanding values of the hill.

The Peak may be raking in the tourism dollars, but what charm does it have anymore other than offering a postcard-perfect view of Hong Kong?

The littering of retail outlets and eateries on a hill for thousands of daily visitors may be something which works for Hong Kong. However, to mirror Victoria Peak on Penang Hill would be akin to killing the goose that lays the golden egg for Penang.

As the authority responsible for collecting assessment from individual landowners on Penang Hill, the state government must take full responsibility to come up with an integrated masterplan for the hill.

A list of dos and don'ts must be drawn up for the hill if serious investors are to be courted.

Apart from developing a clear marketing and branding plan for the hill, there must be areas which are clearly outlined for visitors.

An unattractive hawker centre and street vendors greeting visitors up the hill are not magnets in drawing big spenders to the area. These should either be controlled or disallowed.

Also to be considered would be a smooth back-up plan to transport visitors by way of a proper road system, should the new train - which is touted to be able to transport thousands of visitors daily - break down.

An integrated masterplan for Penang Hill must be done in a water-tight manner to ensure that no matter which government runs the state, the integrity of the site is not compromised through policy changes or lack of political will.

Until and unless all outstanding issues are addressed to ensure a steady inflow of revenue stream up the hill, the proposed restoration of the century-old hotel will not serve as a catalyst in bringing investors up the hill and help in spinning the state's economy.