Sharp drop in mainland tourists + labor regulations lead to closure of Kenting Bay Yacht Hotel

VIDEO: Is Kenting’s tourism industry collapsing further? Bay Yacht Hotel faces wage arrears again

Kenting’s tourism sector has been hit by continuous turmoil. In addition to high consumer prices deterring Taiwanese visitors, the number of local tourists has plummeted “like an avalanche” in recent years. Coupled with factors such as the “one fixed day, one flexible day” labor policy, accommodation operators can no longer sustain operational costs. After repeated reports of wage disputes, Kenting Bay Yacht Resort will officially cease external operations starting today.

Has Kenting lost its charm? This year, during the New Year’s holiday, local visitor numbers dropped by 20%. According to a report by the Liberty Times, Kenting Bay Yacht Resort in Checheng, Pingtung, has shut down starting today. A notice issued by the hotel’s management stated, “To comprehensively meet the needs of various customer segments and further enhance efficiency through re-planning, we will cease external operations starting January 5, 2018, and carry out internal renovations.”

The operator admitted that the sharp decline in mainland tourists, combined with the “one fixed day, one flexible day” labor policy, was the final blow to the hotel. To comply with the labor regulations, the hotel had to increase monthly expenses by nearly NT$400,000 to hire hourly workers to maintain 24-hour service. However, despite the significant increase in labor costs, the number of guests did not improve, leading to rising losses. The hotel could not pay salaries on time and was forced to announce its closure.

In addition, Kenting Bay Yacht Resort issued a notice on the 3rd stating that it would close after today. The Pingtung County Government Labor Affairs Office determined that the operator did not meet the requirement of providing a 60-day advance notice for “mass layoffs,” and will further hold discussions and coordinate with the operator and employees.