CRAG HOTEL - WHO WILL WIN THE TENDER?

Posted by Unknown On Friday, June 18, 2010 2 comments
How many of you know about Crag Hotel in Penang? It might surprise you that Crag Hotel was once a famous hotel. Despite all the history behind the place, it is a derelict structure located on a hill shoulder in Penang Hill. Crag Hotel, which commands a panoramic view of Penang Island, was established by the famous Sarkies Brothers who were ethnic Armenians who hailed from Isfahan, Iran.

They arrived in Southeast Asia at the fourth quarter of the 19th century and were involved in various trades at the beginning. They only ventured into the hotel line after they got acquainted with the famous Khaw family. Then they started E % O Hotel in Penang, Raffles Hotel in Singapore, Kartika Wijaya Hotel in Batu, East Jawa, in 1891, the Strand Hotel in Yangon, Myanmar, in 1901 and Hotel Oranje (now called the Hotel Majapahit Mandarin Oriental) in Surabaya, Indonesia, in 1910.

During that period, Captain J. Kerr, a Scotsman, leased a plot of land and built his bungalow which he named The Crag. When they heard about this, the Sarkies brothers acquired the bungalow from him and opened the Crag Hotel there in 1895 although THIS SITE says it was opened in 1890. According to various records, Crag Hotel was operational until the Second World War after which it was abandoned until 1955, when the International School of Penang, commonly known as Uplands School, leased it to operate its primary boarding school. The first intake of 60 pupils began classes there in mid January, 1955. Uplands School occupied Crag Hotel until it moved out in 1977. Since then, it has been vacant except when it was used as the set for Indochine in 1991-1992. As such, the building is in a derelict condition and an eye-sore to any visitor.

THIS SITE (which has a few good photos of the hotel) said:

"The original Crag hotel comprised of several chalets for guests dotted around the main building, these were all linked by winding pathways and lush planting. The main building had dinning rooms, entertainment and lounge areas."


According to Penang Chief Minister's blog, the state government of Penang issued a tender for the redevelopment of Crag Hotel on 1 June, 2009. The tender was closed due to financial and technical reasons. On 26th May 2010, the state government is offering the hotel through a Request For Proposal (RFP), to be submitted to the State Secretariat by 30 August, 2010. Only companies with a minimum paid-up capital of US$100,000 will be considered for the proposed redevelopment. This is one of the avenues the state is undertaking to generate revenue, through Public Private Partnerships. The RFP can be downloaded from the Penang State Government portal at THIS SITE beginning 1st June 2010 and submitted to the Secretariat by 30th August 2010.

A few days ago, Marina, an acquaintance, raised a few issues in THE BUSINESS TIMES HERE:

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.

Subsequently, my friend James (who resides in Winchelsea Beach, East Sussex, UK) and a very active member from the Uplands Alumni wrote to theSun a few days ago. His letter is worth a read and I am reposting it here because of the pertinent issues raised.

The local grapevine is abuzz as to who may get the contract. Whatever the case, I sincerely hope that it will be someone who will work hand in hand with the state government after they have settled a master plan to develop Penang Hill. The profit motive and should not be the main consideration in how the tender is awarded but the authorities concerned MUST consider all aspects of the development, including addressing existing problems of Penang Hill and conserving and maintaining the heritage aspect of the hill and Crag Hotel, which has a special place in the hearts of Uplanders, including yours truly who was part of the teaching faculty of International School of Uplands from 1988 to 1995.

Letter from James to theSun

Better a state restored Crag Hotel

I WOULD like to add a few comments in reply to the articles in the Business Times about the Crag Hotel heritage site in Penang.

I am a son of a British planter and Kedah JP born in Penang in 1955. I am also an alumnus of Uplands School 59-66 and organiser of its 55th anniversary reunion in March. This year’s event brought well over 100 Uplanders and their families back to Penang, prompting me to make enquiries with the state government, if they would in conjunction with the alumni restore the Crag Hotel site as a heritage site.

When I made enquiries in March, there had not been any structural survey made of the site in 35 years. So how could it be restored? What stands out in this latest offering is that no developer wanted the old school to restore as it would not be profitable enough. But they would do it if enough land surrounding the school was made available to build on.

The state government under the pretext of Penang Heritage is allowing some developer to destroy the beauty of Bukit Bendera.

Considering the investment needed just to repair the road and bridge to the Crag before any restoration can be started how is this going to work? Penangites should insist a clause be inserted saying that the Crag’s restoration and its opening must be the first phase before any other works start?

The state government should explain with the limited infrastructure, water, sewage and electricity how the hill can cope with the new train, let alone new buildings. Also without the cable car to Teluk Bahang that was once suggested how will the 3,000 people stuck on the hill get down when it has breakdowns? Not a problem with the old train with 300 at a time at the top.

I have a suggestion for the Penang Government if it is really interested in heritage that will put money in its pockets and the pockets of locals on the hill. It should do what the previous state government failed to do. It should invest in heritage tourism right under its nose with the help of thousands of people like myself, Penang born and schooled on the hill to boot. A state restored and run site will not make millions, but it will turn a profit and not destroy the beauty of the hill.
I have watched Penang closely for some years and see it turning into a cheap Dubai full of MM2H, until the money runs dry that is and all real Penangites are forced to live in Butterworth, because they can’t afford the houses there.

Imagine the day the bridge is blocked and the idle rich wake up to find no staff and Penang silent?

The bubble burst in the US and Europe and the strength of the ringgit is slowing tourism down already. But Malaysia carries on doing what it does best, building roads and bridges to nowhere, factories and hotels that remain empty. And someone always makes a profit.

Remember Rome was not built in a day, but it burnt to the ground in one.

James Justice
Winchelsea Beach
East Sussex
UK

With this, you have a brief overview of Crag Hotel - then and now. What does the future hold for Crag Hotel and Penang? Who will win the tender? I know James is interested in the project :-). Whatever the case, may it be awarded to the party that has the best interests of Penang, Crag Hotel and Penangites at heart....



2 comments to CRAG HOTEL - WHO WILL WIN THE TENDER?

  1. says:

    Cat-from-Sydney Aunty Paula,
    We remember there was a Bellevue on top there, not Crag. What a name... Who's gonna crack the Crag?har har har *evil laughs*

  1. says:

    Unknown Dear Angelina

    Bellevue is a hotel run by Lim Chong Keat and is famous for its steamboat...It also has an aviary that houses a good collection of feathered friends. The lawn area offers quite a beautiful view of the island. Let's check it out if ever you swing by to Penang. Take care and have a great weekend!

    Salam

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