Hong Kong-listed travel agency EGL Tours has laid off 120 tour guides as business activity remains dormant owing to border restrictions during the pandemic.
The layoff accounted for a quarter of its existing workforce, with a total of HK$20 million expected to be paid to retrenched staff.
This marked the second major retrenchment exercise conducted by a Hong Kong travel agency, after Wing On Travel Service sacked 120 staff last December.
EGL Tours executive director, Steve Huen, told TTG Asia that affected employees were tour guides in charge of conducting tours in Japan and longhaul markets.
“Since our business was dormant for almost one year, only 20 of them chose to continue to work, while the rest opted for no-pay leave over the past 10 to 11 months. (The layoff) is a timely move and we hope to help them by offering some cash payouts before Chinese New Year,” Huen said.
Each retrenched worker received an average of HK$160,000 (US$20,600) in severance pay, with long-time employees (i.e those who have spent 20 years with the company) receiving HK$300,000.
“We promise to give them the priority to rejoin the company when the situation improves and business rebounds,” Huen said, adding that no further retrenchment is on the cards.
An agent, who requested anonymity, said that with many agencies downsizing in manpower to keep businesses afloat during the pandemic, it would be tough for agencies to return to pre-pandemic scale when travel recovers, as many agents may have already switched careers by then.
She added that as an independent travel agent, operating costs are “pretty low”, especially given that she is able to share her office space with two other agents after the Travel Industry Council relaxed the rule. She said they were holding out hope for business to improve at the end of 2021.
Bus operators are also suffering the brunt of prolonged border closures. One such company is Chinalink Express Holdings, a subsidiary of Kwoon Chung Bus Holdings, whose fleet of 550 coaches and small vehicles account for nearly 50 per cent of total market supply.
The company, which provides cross-border coach services between Hong Kong and Guandong province, has seen its staff count plunge from 2,000 before the pandemic to 900 since borders were closed.
Managing director Alan Chan lamented insufficient government assistance for coach bus operators. He said: “We have been losing HK$1.3 million on a daily basis, and most operators owe money to the banks, so it would be a big help if the government could set aside HK$200-300 million for us to cover costs for safety, repair and anti-pandemic measures on coaches.
“Currently, more than 1,000 coach buses have been sitting in a government site in Kwai Chung for months and we call it the graveyard for coaches.”
Princess Cruises has sold the Pacific Princess to an undisclosed buyer, as parent company Carnival Corporation looks to accelerate the exit of less-efficient ships from its fleet.
The boutique-style ship first joined the cruise line’s fleet in 2002, and originally entered service in 1999 as R3 for Renaissance Cruises.
Pacific Princess sailed more than 1.6 million nautical miles, and completed 11 World Cruises. In fact, The Love Boat’s “Captain Stubing” and Princess Cruises ambassador Gavin MacLeod was on the ship’s navigation bridge as the ship sailed under the Golden Gate Bridge for the first time to kick off the inaugural season sailing to Alaska from San Francisco in May 2003.
In another historic moment, Pacific Princess sailed a throwback cruise on December 3, 2015, recreating the cruise line’s very first itinerary to the Mexican Riviera in celebration of Princess Cruises’ 50th anniversary.
The cruise line said that guests with bookings will be notified, and along with their travel advisors, will receive information on how to book another Princess Cruise when operations resume. Guests can also opt for a refund.