In the village of Merang, north of Kuala Terengganu, the Aryani is the creation of a cousin of the local sultan, its layout inspired by a former royal palace. Anyone familiar with the more discreet Balinese resorts will instantly be at home among these pagodas and lily ponds, but the style is simpler and less decorative than in Bali. The combination of wood and stone in clean rectangular shapes brings a touch of Japanese. There are only 17 villas spread over nine acres, each with its own garden and outdoor bath. Within easy distance of traditional-village houses, the fishing harbour and boat jetties of Merang, this is the departure point for the offshore islands of Perhentian and Redang, both excellent for diving, but the hotel is so self-contained, its shore so pristine, that you might as well be on an island here, too.