The luxury Peninsula hotel will not cut wages or lay off staff in the city despite an “uncertain” business outlook, according to Clement Kwok King-man, chief executive officer at owner Hongkong and Shanghai Hotels Limited.
Kwok’s promise came after the luxury hotel operator released its first quarter results yesterday, which saw a 2 per cent drop in average room rates to HK$5,017 compared to the same period last year. Its occupancy rate also fell 4 percentage points to 71 per cent.
“The outlook for Hong Kong market in terms of tourism … is somewhat uncertain,” Kwok said.
Instead of cutting labour expenditure, Kwok said the company would find other ways to control costs and improve the efficiency of the staff.
“The demand for luxury hotels remains strong,” said Barry Mak, an associate professor at Polytechnic University’s school of hotel and tourism management, adding high-end travellers were less affected by the current tourism downturn.
Despite the year-on-year decline, Peninsula still outperformed the broader hotel sector in Hong Kong at the start of the year.