Kaohsiung-based Grand Hi-Lai Hotel (漢來大飯店) has temporarily cut wages for all employees by 18 percent and is encouraging them to take unpaid leave to withstand a slump in business caused by the COVID-19 pandemic.
The hotel, which features 540 rooms, on Thursday said that it had no choice but to take the steps to stay alive, as it does not see light at the end of the tunnel.
The pay cut, tentatively for three months, would affect all 300 employees, Grand Hi-Lai Hotel general manager Lin Zi-kuan (林子寬) said, adding that occupancy has plunged to less than 20 percent.
Photo: Chang Chung-i, Taipei Times
Hotel officials proposed the measure, which won the support of all staff, Lin said.
The five-star hotel had earlier shut down some floors to save costs, but concluded that further belt-tightening was necessary, Lin said.
The disease is taking a far worse toll on the local hospitality industry than the SARS outbreak in 2003, Lin said, as the number of foreign tourists has dropped to zero, while domestic travelers remain at home to avoid infection.
The industry witnessed a quick rebound 17 years ago, but there have been concerns that a recovery might prove evasive this time, as no cure has been developed for COVID-19 and the development of a vaccine is expected to take 12 to 18 months.
The Grand Hi-Lai Hotel has also encouraged employees to take unpaid leave, and it would distribute NT$5,000 in monthly subsidies and pay for their health insurance until the hotel can resume normal operations, Lin said.
The hotel is also to provide interest-free loans equivalent to 80 percent of reduced wages for two years to help those with cash needs during the transition, Lin said.
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