Sharp decline in mainland tourists + labor regulations: Another hotel in Kenting closes down

Kenting tourism becomes a focus of domestic travel, with yet another hotel now reported to have ceased operations. (File photo from our newspaper group)

Kenting’s tourism industry has been plagued by ongoing turmoil. In addition to high consumer prices deterring Taiwanese visitors, the number of local tourists has seen a “snowballing” decline in recent years. Coupled with factors such as the labor regulations (“one fixed day off, one flexible rest day” policy), not only have campsites gone bankrupt and shut down, but now another lodging operator, unable to bear operational costs, has faced repeated wage disputes and will officially cease external operations starting today.

Video: Is Kenting’s tourism continuing its nosedive? Park City Hotel hit by wage arrears again

Has Kenting lost its charm? Visitor numbers dropped by 20% during this year’s New Year’s Eve and New Year holiday, and according to the Liberty Times, the Kenting Park City Resort Hotel in Checheng, Pingtung, has ceased operations starting today. A company document on the hotel’s operations 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 drop in mainland tourists, combined with the labor regulations, 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 in order to maintain 24-hour service. However, despite the significant investment in manpower, the number of guests did not improve, leading to mounting losses. The hotel not only failed to pay salaries on time but was also forced to announce its closure.

In addition, Park City Hotel in Kenting issued a notice on the 3rd stating that it would cease operations after today. The Pingtung County Government Labor Affairs Office determined that the operator did not meet the requirement to provide a 60-day advance notice for “mass layoffs,” and will further hold discussions and coordinate with both the operator and employees.