By : ELSA FERNÁNDEZ MIRALLES - Caribbean Business Online
Even though November is going better than October, management hopes occupancy will rise in winter’s high season
The Caribe Hilton recently had to lay off more than 50 people due to increasing operational costs and declining room revenue.
After three years of a local economic recession, now made worse due to the downturn in the U.S. and world economies, hospitality industry experts noted it was only a matter of time before some of Puerto Rico’s main hotels began to lay off personnel.
“We had to restructure our operations. Although our occupancy levels aren’t as bad as they were last month—we are at around 60% to 70% because of a couple of groups—the hike in operational cost is so high we couldn’t withstand the blow. Our fares, however, are almost $20 lower than last year. With every single cost growing, we simply couldn’t afford it,” expressed José Campo, general manager of the Caribe Hilton.
Campo said the hotel had to let go around 30 union workers and about 20 nonaffiliated employees because the global recession has made it impossible to raise room rates as the hotel did during past high seasons. However, the executive feels optimistic that with the new changes in government administrations—both locally and on the U.S. mainland—consumers will regain their confidence and the industry can recover during the upcoming high season.
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