University of Cebu-Main Campus

College of Hospitality Management

HM 214 : PRACTICUM 1

Case #7
FINANCIAL ASSISTANCE URGED FOR HOTEL WORKERS
Financial assistance urged for hotel workers

MANILA, Philippines — The Hotel and Sales Marketing Association (HSMA) is urging the government to
provide financial assistance to hotel workers on forced leave due to the implementation of community
quarantine in Metro Manila amid the coronavirus disease 2019 or COVID-19 pandemic. In a text
message to The STAR, HSMA president Christine Ibaretta said a financial assistance from the
Department of Labor and Employment (DOLE) is among the measures that could help ease the impact of
the community quarantine on the hotel market.

“Similar scheme when Boracay was closed for six months. DOLE gave P4,000 per month for six months,”
Ibaretta said. The labor department earlier provided financial assistance to 17,735 workers displaced by
the Boracay closure in 2018 amounting to P4,205.50 per month, which is 50 percent of daily minimum
wage in Western Visayas.

Metro Manila is under a month-long quarantine until April 14, which calls for the suspension of land, air
and sea travel to and from Metro. As of this writing, there are 111 confirmed COVID-19 cases in the
Philippines, according to the Department of Health (DOH). Ibaretta said hotel sales and marketing have
already been affected by the COVID-19 pandemic, with hotel occupancy now at 36 to 49 percent from
75 to 98 percent in the past.

“Clients do not accept our sales calls,” Ibaretta said adding that this has resulted in four-day workweeks,
work from home schemes and the use of sick leaves and vacation leaves by employees. “Room rates of
the properties were likewise as low as 75 percent off the rack,” Ibaretta said.

The Department of Tourism (DOT), along with other tourism stakeholders, including hotels agreed
earlier to offer discounted rates for hotels, airfare and tour packages to promote domestic tourism amid
the COVID-19 outbreak. Apart from the financial assistance for workers, Ibaretta cited tax holidays,
financial assistance to low income earners as well as an extension of flexibility on loan amortization for
all by banks as among other measures that could help ease the impact of the Metro Manila quarantine
on the hotel industry.

Tourism Congress of the Philippines (TCP) president Jose Clemente told The STAR earlier that they would
ask for additional financial rescue packages from the government as the tourism industry is probably the
hardest hit sector.

“We will collapse without that,” he said. Clemente said this would be added to the group’s initial wishlist
to the government. The wishlist was presented during the meeting of the Tourism Coordinating Council
(TCC).

The DOT earlier allocated P6 billion to help mitigate the economic impact of the COVID-19 pandemic. Of
the fund, P725 million will be allocated for tactical programs, conducting and participation of
international events and market development initiatives worldwide.

“For our direct support to the private sector, the DOT will waive the participation fees for international
travel and trade fairs from Feb. 17 to June 30, amounting to P11.2 million,” Tourism Secretary
Bernadette Romulo-Puyat said earlier.

https://www.philstar.com/business/2020/03/16/2001081/financial-assistance-urged-hotel-
workers

Case Study Report Outline

1. Introduction and Rationale of the Case
2. Description of the Status of the Case
a. Describe the current situation of the case
b. Describe the performance standards and measures (if any)
3. Assessment/Analysis of the Case
a. Describe the operational strength of the case
b. Describe the issues/problems/concerns within the case
4. Alternatives for improvement
a. Present alternatives to address the identified issues/problems/concerns
b. Assess the alternatives to determine the viable solutions
5. Recommended solutions/improvement
6. References:
It is recommended that you source business journals, textual references as well as any
online sources to support your answers on number 5. Make sure to include it with facts and
figures. Please try to use your own words and ideas based on research rather than copy and
paste other’s words from the internet. You should use the APA format style for the citations
in this section.
Case Study Report Outline
Introduction and Rationale of the Case
Every sector in the universe has been touched by Covid-19, and the hotel business has a major
influence. The epidemic has brought an unanticipated challenge to the entertainment sector. Strategies
to flatten the Covid-19 curvatures, such as Community lockouts, social distance, homework, travel and
mobility constraints have led to numerous enterprises being temporarily shut down and demands for
those still operating considerably decreased.
The number of cases expanded worldwide last year, in critically alert situations requiring
government and peace emergencies around the world. The worsening financial circumstances at hotels
have devastated jobs and safety. Hotels are forced to retire early, take unpaid leave, undergo a
reduction in social security payments and change their working positions.

Description of the Status of the Case

A. Because of this repressive situation, the employees have developed dread of their work and
made their future jobs afraid. Because of this epidemic, employee salary has affected. Government calls
on hotel workers to provide financial assistance on forced unpaid leave as a result of community
quarantine implementation. Hotels have also lost occupancy due to community quarantine, lockdowns
and other limitations. They have decided, in order to boost domestic tourism, to offer lower
accommodation rates, flights and tour packages.
B. They requested financial support from those employees who had to leave unpaid and bring
back their usual lifestyles. The DOLE is one of the actions to alleviate the impact on the lodging market
of community quarantine. Together with stakeholders and hotels the Department of Tourism has
decided to offer reduced prices that will help promote hotels and have smaller clients. To get on your
feet again. In order to reduce economic damage on Covid-19, they have allotted 6 billion pesos. For
tactical programmes, the conduct and participation in international events and market development
efforts throughout the world, 725 million pesos have been provided.

Assessment/Analysis of the Case

A. The problem was the epidemic of Covid-19, which has damaged the globe too severely. They
helped the employees to earn revenue for their everyday necessities. However, the hotel business is
badly hit by this pandemic. Employees are not going to work and clients are going to decline. As the day
passes, we strive to reduce the Covid-19 epidemic, in order to return the regular life we had previously.
We can progressively return to our normal life by receiving the vaccination. But the advantages and
downsides of the hotel sector will always be ahead of us. Another epidemic might occur the most
damaging portion and will again damage the hotel business.
B. Due to the outbreak of the Coivd-19 hotel industry, the number of government lockups,
home residence orders, and travel restrictions has dropped to 36% to 49%. So no visitors, no hotel
guests, no revenue and no employees' wages may enter the nation. For this reason, staff must leave
unpaid to limit the emergence of Covid-19. Employees are so badly impacted by this epidemic that they
do not have enough employment and money to support their necessities every day.

Alternatives for improvement

A. 2020, the year in which the epidemic began, was followed by the government's entire
Philippine shutdown to combat the Covid-19 pandemic. Staying at home reduces the risk of the infection
for afflicted persons. No labor, no income for purchasing their requirements. As far as the hotel business
is concerned, this is also critical in order to keep staff living, even half their projected pay is paid for
forced unpaid absence. For the government, they also provide financial support and commodities to
individuals impacted by the epidemic.
B. In this moment of turmoil, we are still dealing today. It is slowly becoming normal since
vaccinations are being pushed out in many cities in the Philippines, and the hotel sector is starting to
flourish again. Our lessons from contracting the virus have been learned. Hotels must offer enough
guidance on sanitation, social distance and following health regulations including the use of facial masks
in entertainment for guests. We desire the security of our guests so that we have to comply with the
company's laws and regulations.
Recommended solutions/improvement
In this era of crisis, government management plays an enormous role. The country is in charge.
The Hotel Industry Department was responsible for all choices they had taken. In this Covid-19 epidemic,
they have to work together to improve the business.
Operators of the hotel should react rapidly and initiate preventative health measures. This may
be accomplished by combining health procedures such as prevention of infection, awareness-raising and
risk communication. Contact your employees and tell them what to do, not what to do. Inform your
hotel guests that sanitation stations are accessible and risk mitigation measures have been established
by hotel management. Examine and carry out a table exercise in order to find out if you are prepared to
conduct your hotel operations in a worst situation. Try to prevent hands shaking and hug/kissing of
cheeks until at least till the issue is contained. Disinfects whatever a passenger often touches, although
this is included in elevators and lighting switches, door handles, restrooms, telephones and the
reception desk. This can be included. Be aware that the hand sanitizer may run out so quickly.

References

https://www.philstar.com/business/2020/03/16/2001081/financial-assistance-urged-hotel-workers

https://www.dole.gov.ph/php_assets/uploads/2020/07/March.pdf