Miramar Hotel & Investment has reduced its flagship hotel's workforce by 15 per cent through natural wastage in the past six months to reduce costs, according to the company.
Group general manager Peter Yu Tat-kong said about 50 employees had quit the Hotel Miramar in Tsim Sha Tsui during the period and a recruitment freeze had been in place since late last year.
Speaking after Star East (HK) had signed a leasing contract to take 27,000 square feet at the Miramar Shopping Centre, Mr Yu said room rates had dropped up to 40 per cent from last year.
Other hotels that have cut staff as a result of the regional financial crisis and the downturn in tourism include The Excelsior in Causeway Bay, the Grand Hyatt in Wan Chai, Tsim Sha Tsui's Holiday Inn Golden Mile and the Grand Stanford Harbour View and Mandarin Oriental in Central.
Mr Yu said tourism was unlikely to improve in the second half of the year.
He said the company would rely on property investments this year with rental income from the Miramar Shopping Centre and office space in Miramar Tower contributing towards earnings.
