Hyatt Hotels Corporation will lay off 1,300 employees and restructure roles as it tries to cope with the fallout from the coronavirus outbreak that has hammered demand across the world.
“Due to the historic drop in travel demand and the expected slow pace of recovery, Hyatt has made the extremely difficult decision to implement layoffs and restructure roles across its global corporate functions, beginning June 1, 2020,” the company said on its website.
Hyatt, with headquarters in Chicago, operates more than 900 hotels in 65 countries, including the Middle East.
“Covid-19 has thrown our industry into unknown territory,” said Mark Hoplamazian, president and chief executive of Hyatt. “While parting ways with our colleagues is excruciating, we must be sensitive to commercial realities so we can continue to fulfil our purpose of care over the long term – through this pandemic and for what lies beyond.”
The coronavirus outbreak, which had infected more than four million worldwide and killed over 287,000 people as of Tuesday, according to Johns Hopkins University, has disrupted hotel operations worldwide as business and leisure travel came to a halt during March and April.
Hyatt reported a net loss of $103 million (Dh378m), in the first quarter of 2020, compared to a net income of $63m, during the same period last year as revenue per available room (RevPar) declined 28 per cent amid the coronavirus crisis. The largest hotel group in the US has also closed some of its properties and furloughed staff to cut costs.
Hyatt's move came as hoteliers around the world take tough measures to ride out the temporary fall in travel demand.
French hospitality group Accor said last month it was closing more than 3,000 of the group's 5,000 hotels and is making more than 200,000 staff temporarily redundant during the outbreak. The company is also cancelling its €280m (Dh1.1 billion) dividend payout against 2019 earnings, it said in April.
The World Travel & Tourism Council in March said up to 75 million jobs were at risk in travel and tourism sector because of travel restrictions and other measures put in place to stop the spread of the pandemic. It also forecast a $2.1 trillion hit to global gross domestic product in terms of lost tourism revenue in 2020.
But policymakers have pledged concrete action to help the industry recover.
Last month, tourism ministers of the world’s 20 largest industrialised nations said they will support the tourism sector by undertaking capacity building programmes to revive the industry.
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Empty Words
By Mario Levrero
(Coffee House Press)
UAE currency: the story behind the money in your pockets
Museum of the Future in numbers
- 78 metres is the height of the museum
- 30,000 square metres is its total area
- 17,000 square metres is the length of the stainless steel facade
- 14 kilometres is the length of LED lights used on the facade
- 1,024 individual pieces make up the exterior
- 7 floors in all, with one for administrative offices
- 2,400 diagonally intersecting steel members frame the torus shape
- 100 species of trees and plants dot the gardens
- Dh145 is the price of a ticket
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
THREE POSSIBLE REPLACEMENTS
Khalfan Mubarak
The Al Jazira playmaker has for some time been tipped for stardom within UAE football, with Quique Sanchez Flores, his former manager at Al Ahli, once labelling him a “genius”. He was only 17. Now 23, Mubarak has developed into a crafty supplier of chances, evidenced by his seven assists in six league matches this season. Still to display his class at international level, though.
Rayan Yaslam
The Al Ain attacking midfielder has become a regular starter for his club in the past 15 months. Yaslam, 23, is a tidy and intelligent player, technically proficient with an eye for opening up defences. Developed while alongside Abdulrahman in the Al Ain first-team and has progressed well since manager Zoran Mamic’s arrival. However, made his UAE debut only last December.
Ismail Matar
The Al Wahda forward is revered by teammates and a key contributor to the squad. At 35, his best days are behind him, but Matar is incredibly experienced and an example to his colleagues. His ability to cope with tournament football is a concern, though, despite Matar beginning the season well. Not a like-for-like replacement, although the system could be adjusted to suit.
