EGL Tours axes 120 guides as pandemic lingers
Hong Kong-listed vacation company EGL Tours has laid off 120 tour guides as company activity stays dormant owing to border restrictions for the duration of the pandemic.
The layoff accounted for a quarter of its current workforce, with a full of HK$20 million expected to be paid out to retrenched workers.
This marked the next major retrenchment training executed by a Hong Kong vacation company, immediately after Wing On Vacation Assistance sacked 120 staff previous December.
EGL Excursions executive director, Steve Huen, instructed TTG Asia that impacted staff were being tour guides in cost of conducting tours in Japan and longhaul markets.
“Since our enterprise was dormant for nearly 1 yr, only 20 of them chose to continue on to perform, while the relaxation opted for no-shell out go away more than the previous 10 to 11 months. (The layoff) is a timely shift and we hope to enable them by presenting some money payouts just before Chinese New Calendar year,” Huen stated.
Each individual retrenched employee gained an common of HK$160,000 (US$20,600) in severance shell out, with prolonged-time personnel (i.e individuals who have put in 20 a long time with the enterprise) receiving HK$300,000.
“We promise to give them the precedence to rejoin the business when the condition enhances and small business rebounds,” Huen explained, adding that no more retrenchment is on the playing cards.
An agent, who asked for anonymity, explained that with a lot of companies downsizing in manpower to retain businesses afloat through the pandemic, it would be tough for organizations to return to pre-pandemic scale when journey recovers, as numerous agents could have presently switched professions by then.
She added that as an impartial vacation agent, functioning expenses are “pretty low”, in particular specified that she is capable to share her office space with two other agents following the Travel Market Council peaceful the rule. She stated they ended up keeping out hope for company to make improvements to at the stop of 2021.
Bus operators are also suffering the brunt of extended border closures. Just one this kind of company is Chinalink Convey Holdings, a subsidiary of Kwoon Chung Bus Holdings, whose fleet of 550 coaches and tiny cars account for nearly 50 for every cent of full marketplace source.
The enterprise, which presents cross-border mentor solutions amongst Hong Kong and Guandong province, has found its team depend plunge from 2,000 right before the pandemic to 900 since borders ended up shut.
Managing director Alan Chan lamented inadequate authorities aid for coach bus operators. He explained: “We have been shedding HK$1.3 million on a day by day foundation, and most operators owe money to the banking companies, so it would be a significant assistance if the govt could set aside HK$200-300 million for us to cover charges for basic safety, mend and anti-pandemic measures on coaches.
“Currently, much more than 1,000 coach buses have been sitting in a authorities web site in Kwai Chung for months and we connect with it the graveyard for coaches.”