'Mass Layoffs Ahead If Wage Subsidy Not Extended'

Representatives of the tourism and hotel industries on Thursday urged the government to extend its wage subsidy scheme, warning of massive layoffs if it doesn’t help the sectors.

The Federation of Hong Kong Hotel Owners and the Travel Agents’ Relief Alliance said their recent polls showed around 400 travel agencies and 60 hotel owners will let go of their staff if the government doesn’t help pay wages for another three to six months.

The groups said most operators polled have not yet laid workers off, although Covid-19 has brought tourism to a virtual standstill because of the government's Employment Support Scheme.

The subsidies for employers, covering half their workers' wages up to a maximum of HK$9,000 per month, is due to end in November.

Chief Secretary Matthew Cheung said last month that he had no plans to extend the programme.

Alex Lee, the general manager of Miramar Travel, said without further salary relief, more than 300 travel agencies would fire at least 40 percent of their staff.

"We cannot think that because we have had the Employment Support Scheme in the past six months, the [travel agency] owners are enjoying [the situation]. They are not," he said.

"The owners of all the travel agencies still had to top up all the expenses... If we stop [the ESS] by the end of November, it will be a nightmare."

Lee said the government should give at least HK$100,000 to each travel agency to tide them over for the next six months.

Michael Li, executive director of the Federation of Hong Kong Hotel Owners, said the government should also help the sectors stay afloat by allowing more international travel.

"I think it's very important for the government to do something more positively, more transparently on the health code system, making sure that our borders will be open," he said.

"If the borders cannot be opened, even though we still enjoy [the government subsidies] for another six months, it doesn't mean that after another six months, hotels will survive."