Does Penang Need a New Convention Centre?

Artist impression of the PICC

While I was busy with an event, there was a debate about the viability and suitability of building a new convention centre in Penang. A number of activists have voiced out their opposition to the project.

The proposed convention centre is supposed to be constructed right next to the Pisa. Funding for the project is expected to be borne by the MPPP. It is expected to register a deficit of RM40 million in 2010 on the back of revenue of RM230 million (two thirds of which is raised from assessments/taxes).

The Council has allocated RM30 million for the convention centre in 2010 and a further RM20 million is expected to be incurred in 2011. Moreover, maintenance cost is expected to raise the budget by another 10 percent.

It is without a doubt that Penang can benefit from a world class convention centre. Head of a foreign tourism board shared with me how good convention centres have helped to attract world class events to some provinces in his country.

However, the opposition from these activists and Penangites is not without a basis. We need to consider the right timing, other priorities, suitability of location, action plan, management know-how and others before deciding to push ahead with the project.

There are several considerations:

1) Choice of location: Not suitable

Building another convention centre next to Pisa may not be such a good idea. Take for example if there are two simultaneous events at both Pisa and PICC (Penang International Convention Centre), the area might be choked with traffic. Availability of enough parking lots may also be another nightmare for event participants.

It is important for the state government to source for other more appropriate locations such as Batu Kawan or Balik Pulau which it has bigger land reserves. Moreover, a new convention centre might help to catalyst hospitality and infrastructure development in the area.

2) Priority: Low

PICC is still a good project if it can be undertaken and managed professionally. However, the project should not be initiated and managed by the state government or MPPP. The current government, MPPP and its vital departments are running on a skeletal and lean management structure.

Previous projects initiated and managed by the state government are now in dilated condition e.g. Pisa, Komtar and others. What has happened to the Dome in Komtar? It is now not utilized at all and left to rot. Pisa is under utilized. How many world class events or concerts have been held in the facility?

I agree with the suggestion to first utilize, upgrade, refurbish and rebrand these facilities. Attracting quality events is not only about having good facility but also good management and promotional support.

The state government should first make its plan to promote MICE tourism clear. Its Visit Penang 2010-2012 can use some meat and content for its promotional activities.

Hence, the local council should focus on improving local amenities, public services, cleanliness, public transport system and other support services. Improvement in these areas are essential to make Penang a leading MICE hub.

As an event organiser, it is not economically feasible and viable to hold an international event or concert in the state at the moment. Some of us still brought good events to Penang out of our affection for the state. Most of these events face difficulty in attracting the right crowd, sponsorship or paid audience. Local authority red-tape to apply for event permit is horrendous and frustrating. These areas need improvement too.

It is wiser for the state government to focus on its heritage conservation effort and capitalize on George Town's world heritage status. George Town needs serious upgrade and attention. The city centre is prone to flash flood. Its streets and drains are filled up with rubbish and pot holes. However, it has a unique charm to attract foreign and local visitors.

Put the money where the mouth is.

3) Strategy and Action Plan: None

It is inevitable for us to ask for an action plan from the state government. The new government tenure is fast approaching its first mid-term but there is no clear policy direction or strategy on economic development. It appears to me that the state government is merely adopting the same old development model and claims that it can do better than the predecessor.

Hence, it is legitimate for the people to voice out their reservation about the new convention project. We do not want yet another monument and white elephant. It is time to revive Komtar and enhance Pisa. The state government needs to improve its planning, implementation and evaluation capabilities.

If Penang is far from being world-class, how can we attract world-class events?

Moreover, some state agencies and departments are still not sure about their role and responsibility. Some departments have turned into event organisers themselves instead of playing a role to facilitate, catalyst and promote MICE and tourism. Decent resources should be allocated to newly established organisations tasked with promoting tourism and protecting heritage and environment in the state. Here is where some of the RM50 million can help.

I support a call to reconsider the project. Public have been given until 8 January 2010 (expires tomorrow) to submit their opinions and views to the state government. Use this chance to register your views and opinions.

You can submit your views to the Penang Municipal Council or you can email your views to riduan@mppp.gov.my before the deadline expires.