Evason Resort Retrenches Staff
As a sign of downward hotel trading the Evason Resort Phuket has initiated a large scale retrenchment of staff. Given the current economic crises and impact on tourism, many of the hotels on the island are struggling with cash flow issues and those located in the highly seasonal southern markets which cater to long haul European business such as Rawai, Kata and Karon are amongst the hardest hit.
Seasonality remains a feast or famine for many hotels who have little diverse market segmentation and rely primarily on high season business from Europe or Scandanavia to generate profits for the entire year. With lower peak season business after the 'red shirt' political events and slowing of long haul travel, business on the island is taking a step backwards for the moment to its prior incarnation as a 'seasonal destination.'
Earlier in the year Laguna Phuket experienced a blockade by staff as a result of alleged bonus inequities. For the most part labor issues on the island have been resolved by a fairly efficient legal system and fairly defined employment code and dispute resolution process.