Hong Kong Disneyland cuts salaries, introduces unpaid leave as tourist numbers plummet amid global Covid-19 pandemic
- Loss-making resort cites ‘devastating impact’ of coronavirus, acknowledging no clear indication when park could reopen
- Similar cost-cutting moves were initiated just last month at the city’s embattled Ocean Park
Hong Kong Disneyland has temporarily cut the salaries of some senior managers by up to 30 per cent and asked its full-time employees to take several days of unpaid leave in April in cost-cutting measures necessitated by the coronavirus pandemic.
The loss-making resort on Lantau Island on Wednesday said Covid-19 had created a “devastating impact” on individuals and business around the world, including itself.
It added there was no clear indication when the resort – closed since January 26 and now offering only limited services at its three hotels – could be reopened.
Global travel and tourism have cratered in recent months, with at least 65 airlines cutting more than 95 per cent of their flights worldwide for April and May.
Tourist arrivals to Hong Kong, which as of Wednesday had 960 confirmed coronavirus cases, slumped to just 199,000 visitors in February, down 96 per cent from the normal monthly average.
A spokeswoman for Disneyland said “a few” executives at the vice-president level and above would see their salaries cut by anywhere from 20 to 30 per cent from April.
All full-time employees, who receive full pay and benefits, will be asked to take one day of unpaid leave each week of the month.
Asked how long the temporary measures would last, the spokeswoman said it would be reviewed when the resort reopened and would depend on its business performance.
“While the company is carefully monitoring the situation and following health authorities’ guidance as we consider our reopening plan, we are also mindful that there is currently no clear indication of timing,” she said.
Disneyland employs about 5,000 people full-time and about 2,000 part-timers. Its performance was first dealt a heavy blow by months of social unrest, which saw its net loss for the 2018/19 financial year nearly double – to HK$105 million (US$13.4 million), up from HK$54 million the year prior.
The city’s other embattled theme park – Ocean Park – already made similar moves in March, asking its entire workforce to take some form of unpaid leave and slashing senior management salaries.
The measures follow a pay freeze from January for all 2,000 staff and the suspension of all but essential recruitment to avoid lay-offs.
