Makati Shangri-La closing doors

MANILA, Philippines — The country’s hotel industry continues to reel from the impact of the COVID-19 pandemic as five-star hotel Makati Shangri-La announced yesterday that it is temporarily shutting down beginning Feb. 1.

In a letter addressed to Philippine Hotel Owners Association president Arthur Lopez, Shangri-La Group vice president for operations John Rice said despite the company’s best efforts, the prolonged recovery timeline has resulted in increasing financial pressure on its operations in the Philippines.

“Owing to continued low business levels and having considered all viable options over weeks of consideration, we decided to reorganize our workforce and operations in the Philippines as we continue to navigate an uncertain business environment,” Rice said.

He said throughout the pandemic, the company’s priority has been to preserve as many jobs as possible.

Rice added that for the past 10 months, Shangri-La has provided assistance to help its employees cope with the pandemic.

The Shangri-La Group said it would provide employees with compensation package that is higher than local statutory guidelines and extend health care coverage and groceries until Dec. 31 this year.

“We look forward to reopening the property when business conditions have improved,” Rice said.

To date, Makati Shangri-La holds a certificate of authority to operate for staycations issued by the Department of Tourism, allowing the hotel to accept guests for leisure purposes.

Lopez said the closure of Makati Shangri-La is sad news for the industry.

Tourism Secretary Bernadette Romulo-Puyat also lamented the hotel’s closure.

“The hotel has been a pillar in the tourism industry and has contributed to positioning the country in the region and around the globe. We are hopeful that Makati Shangri-La will soon reopen its doors to international and domestic clients,” Romulo-Puyat said.