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Hotels expected to lay off staff

figures dipping to less than 50 percent in August -- to the consternation of the Bermuda Industrial Union.

Union president Mr. Ottiwell Simmons laid the blame at the door of hotel management and the Tourism Department for failing to fill beds this summer.

"It is very unfair,'' he said. "We are demanding that we have more competent management and better promotion programmes by the Department of Tourism.

Calling for unemployment compensation he said there was a need for a "safety net'' for working class Bermudians.

Both the Hamilton and Southampton Princess hotels will be laying off staff.

But Bermuda Hotel Association president Mr. Steven Barker could not put a figure on how many.

While summer lay-offs were virtually unheard of in the 1970s and 80s they have become more prevalent in the 1990s. Hotels are forced to shed staff when occupancy levels dip below 70 percent in the summer months.

"It is most unfortunate,'' Mr. Barker said. "In the better years never would we be faced with lay-offs in July and August. Unfortunately it has become more common in the 90s.'' The lay-offs he said were Island wide but concerned some hotels more than others.

June and the first part of July enjoyed some strong group traffic, Mr. Barker said, but occupancy levels were expected to slide into a softer area toward the end of the month which could run on into August.

"It is not a good sign,'' Mr. Barker admitted. "Bookings are not coming in as quickly as they should.'' But, he added, hotels would continue with marketing and promotional efforts in an attempt to improve occupancies.

However, Mr. Simmons protested more needed to be done. Under the union agreement it was understood lay-offs were to be expected from time to time, he said. But, it was up to management to promote hotels and attract customers.

On one hand hotel employers touted the hotel industry as an attractive career for Bermudians. On the other, there was no guarantee of full-time employment or worthwhile opportunities, Mr. Simmons said.

Each day a worker was laid off he lost income, he added. Meanwhile the hotel made a 100 percent saving on wages.

Belmont Hotel managing director Mr. William Griffith also admitted staff would be laid off in July and possibly in August too if bookings did not break the 70 percent barrier.

The lay-offs would mostly affect service employees and especially restaurant staff who would be rotated or given vacation time.

Those two months tended to be the softer part of the peak season, Mr. Griffith said, adding the hotel was always hopeful it would get last minute bookings to fill in the gaps.

"July and August are major holiday periods in the United States with a lot of domestic holidays,'' Mr. Griffith said. "It is the time when most people go on domestic vacations.'' Bermuda Hotel Association figures released last week showed that while June ended with 84.6 percent occupancy -- just one half percent down from last year, July figures are projected to drop to 68.9 percent.

Both July and August projected figures are down from those made the at the same time last year. However, September shows a slight rise over last year with 45.5 percent expected compared with 42.2 percent projected for September 1994.

Nevertheless, actual occupancy levels usually exceed projected figures, boosted by last minute bookings. While August 1994 occupancy was projected at 55 percent, final occupancy levels exceeded 80 percent.