The hotel is mainly a small city,with an average ratio of two and a half to three employees per employee. Hotel room has a 200 room hotel, about 500 workers directly depend on it for their salary, as well as at least 3000 extra, interdependent people if we also consider their family members account.
Now add food business managers who supply raw materials to the hotel industry. those responsible for law enforcement, such as: B. cleaning and machine suppliers; Add all paper and utility providers.
This also includes all suppliers of linen, porcelain, glass, carpets and terry cloth. Remember that the families of these workers also depend on the income of these people.
In our case at Avari Hotels, the employee and health costs of each employee and their family are borne by us. This also applies to primary education, the annual salary increase and the extra monthly bonus (minimum), the severance payments and a paid annual holiday of 30 days. This is exactly why I thought the hotel sector was a small city.
Pakistan has experienced several major economic downturns since the war between Afghanistan and the Soviet Union in the 1980s, all of which have hit the hotel industry particularly hard, and this is not even the disruption of hotels due to internal politics and unrest.
Nuclear tests in the 1990s, 9/11 and the war on terror, the Great Depression in 2008 and now Covid-19, the latter by far the worst of these crises.
One of the main consequences of the pandemic was the ban. When businesses and individuals cannot travel and visit a hotel, the hotel's revenue is guaranteed. Since business costs are suppressed, external placements and sales meetings cannot be held.
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When flights are discontinued, there are no inbound voyages and no crews staying in airport hotels. The hotel's gyms and swimming pools are closed, while restaurants, banquets and meeting facilities, which are an integral part of the hotel's activities, are completely limited
All this has led to a strong suffocation of the income of the hotel industry.As export markets are closed, causing a wave effect for manufacturing companies in Pakistan, the negative effects on hotels that depend on such companies are evident.
While temporarily closed five of eight hotels and had an average occupancy rate of just seven percent in other three hotels since early March 2020, our family did not ask any of our employees to leave the hotel. Since the onset of this crisis, each individual continues to receive their contractually agreed amounts.
There is no concept of unemployment insurance in Pakistan. Where will these people go, how will they feed their families, take care of their medical finances and survive if we remove them? We as an organization do not want that in our conscience.
We continue to pay our small, independent contractors (such as musicians, etc.) the contractually agreed monthly stipend. We have waived four months' rent from small storefronts in our hotel rooms because they don't do business.
To reduce variable costs, we asked all non-essential employees to stay at home (mainly an extended "paid vacation"). We cut off most of the extra fees (such as transportation, etc.) because everyone is at home.
When public transport was discontinued, our core personnel were moved to the hotel rooms to keep the hotels clean and well maintained (including those that are closed) and to ensure that they are not exposed to the corona virus.
Of course, we still have to bear the electricity costs for hotel maintenance, As in many other industries, hotels need to change their staff and guest logs. Covid-19 is here right now and we need to adapt to this new reality.
