POKHARA, May 9 : A hotel in Lakeside area of Pokhara has sent its five senior employees on unpaid leave.
According to promoters of the hotel, they were compelled to send executive and manager-level employees on unpaid leave as they were failing to meet even operating cost due to drop in tourist arrivals after the earthquake of April 25.
"We sent five staff on unpaid leave for indefinite period as it was becoming difficult for us to manage administrative cost as our occupancy is near to nil," a promoter of the hotel told Republica. "We can recall them if the situation improves. But they are free to take up jobs elsewhere if they want."
The promoter said the lay-off would save the hotel Rs 150,000 per month. "With this amount, we can at least pay interest of our loan," he said, painting gloomy picture of hotel business in the lake city in the coming months.
He said hotels can retain their employees if banks become ready to reconsider their interest rate on loans. "If interest rate is not slashed, we cannot run the hotel unless the situation improves," he added.
Omprakash Pandey, operator of Hotel Landmark, said they were compelled to think about cutting workforce after occupancy started falling. "Many employees have accumulated leave. We are planning to request them to take leave for some days," Pandey said, adding, "We do not have any lay-off plan now."
Hotel Landmark, which has 85 rooms, currently employs 106 people. It spends around Rs 1.5 million on employees every month, according to Pandey.
Lakeside area, which is always brimming with foreign tourists, wears a deserted look as tourists have returned to their homeland. Similarly, many have cancelled their bookings.
Some hotels have also stopped running power backup system during daytime to cut 'unnecessary' expenses.
Manager of a one-star in Pokhara said they have sent employees with accrued leave on leave to cut their expenses.
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