Luxury hotel operator My Humble House Hospitality Management Consulting Co (寒舍餐旅) yesterday confirmed that it laid off nearly 100 employees last month after reporting a net loss of NT$260 million (US$9.34 million) for last quarter.
The Taipei-based conglomerate runs Le Meridien Taipei (台北寒舍艾美酒店) and Humble House Taipei (寒舍艾麗) in Xinyi District (信義), the Sheraton Grand Taipei Hotel (台北喜來登大飯店) near Taipei Railway Station and hot spring resort Mu Jiaosi Hotel (礁溪寒沐) in Yilan County.
“The company had no choice but to downsize its payroll following a close review of its operations, which are taking a hard hit from the virus outbreak,” My Humble House said.
The company reported losses of NT$2.33 per share in the second quarter, and had posted losses for the past six quarters, with cumulative losses reaching NT$687 million, or losses of NT$6.16 per share.
The situation might not improve any time soon, with global infections caused by the Delta variant of SARS-CoV-2 escalating and locally transmitted COVID-19 cases lingering, it said.
My Humble House said it is pinning its hopes of recovery on the nation’s vaccination rate allowing consumer activity to improve, aided by the planned distribution of stimulus vouchers in October.
The vaccination rate approached 40 percent yesterday for those who have received their first dose and is expected to reach 50 percent next month.
Taiwan Tourist Hotel Association (觀光旅館商業同業公會) director Hsiao Ching-tien (蕭景田) said he is not surprised that My Humble House cut staff, as the industry was likely to suffer until Taiwan’s vaccination rate hits 70 percent.
Severance is a relatively common measure, while many other hotels are trying to make do by cutting working hours or introducing unpaid leave, Hsiao said.
Hsiao, who owns luxury hot spring hotel Grand View Resort Beitou (北投麗禧溫泉酒店), said that a boom in domestic tourism would not help hotels that depend heavily on international tourists and business travelers.
Hopefully, Taiwan would open its borders to vaccinated tourists as the EU has done for member states, he said.
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