How the COVID-19 is Affecting Resorts
- by Clark Rosales
- April 29, 2020
How is the COVID-19 affecting resorts?
- Diminished income
- Resort closures
- Employee layoffs
In these extraordinary circumstances that we live in, we have seen a rise in the number of disruptions experienced in the different sectors. Particularly, the healthcare sector undoubtedly finds itself overwhelmed with the exponential rise in COVID-19 cases. It’s true that there are various industries affected by this worldwide phenomenon and most of them are largely unequipped to deal with it. The hospitality industry is not exempt from this. The effect of COVID-19 on resorts, hotels, and other kinds of accommodation spaces is something that many owners have difficulty adapting to or dealing with.
Due to the imposed measure of social distancing, there are fewer numbers of people in beach resorts. The purpose of this is to minimize the rate at which the virus spreads and also so that the proper authorities may be able to deal with the virus in contained spaces.
On the surface level, resorts are largely impacted by the absence of customers and beachgoers flocking to their sites. While this does not pose good news for them, it’s something that they’d have to bear with until there is some mitigation experienced across the board. Continue reading to learn more about how this virus is affecting beach resorts in the country.
A large chunk of income earned by owners of beach resorts is derived from the number of people who have successfully booked a stay in their sites. However, this is not the only means by which the resort earns money – it also relies on miscellaneous amenities that people would have to pay for in order to use them.
Because of social distancing and the imposition of Enhanced Community Quarantines, resorts will suffer from a diminished level of income due to the lack of visitors who are willing to make use of their facilities. Fewer people are booking resort appointments in fear of contracting the virus or as a way of complying with the measures imposed in the country.
Because of the lack of income, resort owners would have to cut down on several costs when it comes to beach maintenance. The lack of people visiting also means that in-resort restaurants would have to cut down on their usual expenses, especially in the absence of a proper safety net that would help keep them afloat.
As mentioned before the dropping numbers of beach attendance and hotel bookings would inevitably lead to resort closures, but only for a short period.
This may arguably be the last option that beach resort owners are considering. After all, the business’s financial outlook is heavily impacted by closure of operations. If in the early stages of the COVID-19 spread, closure wasn’t something that the management considered, then this is certainly not the case now. Fortunately, they have anticipated this behavior, which is why resorts like Vivere Azure in Anilao, Batangas have only temporarily closed off the site.
When dealing with resort closures, resort managers have to keep in mind certain mechanisms before this kind of measure. They certainly cannot just leave the resort as it is – they would obviously have to shut down certain water and electricity utilities.
Coupled with resort closures and a loss of income, employee layoffs might be an inevitable situation, especially in the absence of non-essential in-house establishments that the resort might choose to resume operations in.
Laying off employees is not always an easy decision for businesses. This should be the last resort only when all other options have already been exhausted. Some resort employees such as those belonging in the maintenance and cleaning staff would, unfortunately, have to be laid off from work. Furthermore, employees who are involved in maintaining the plumbing and electrical utilities of the resort might also find themselves without work.
However, there are some ways by which resorts can provide these essential employees with a form of safety net. The management could achieve this by providing each employee with a substantial amount of stipend which can prove to be sustainable for both the employees and the owners themselves. One should note that this kind of arrangement should be made, especially for those employees who do not really find a work-from-home setup possible.
The effect of COVID-19 on resorts as well as many industries across the economic sector is a certainly impactful one with regards to income generation. The guide above has hopefully offered you some insight into just some of the ways the virus is negatively impacting operations in beach resorts.