Wednesday, Feb 18, 2009
(This item was originally published Tuesday.)
DUBAI (Zawya Dow Jones)--Dubai's Atlantis Palm Hotel, a joint venture between Kerzner International Holdings Ltd. (KZL) and government-owned developer Nakheel, Tuesday said it has cut 70 jobs just months after a $20 million lavish party to mark its opening.
"We have recently reduced the staff levels at Atlantis, The Palm by 70 personnel," a company spokesperson told Zawya Dow Jones in an emailed statement.
"Many of the reductions were based on performance during the employees' probation period and none of the reductions have or will affect the direct guest experience," the spokesperson added.
The salmon-colored $1.5 billion hotel on Dubai's man-made Palm Jumeirah development officially opened on November 20 amid the ongoing financial crisis and the first signs that Dubai's property boom was slowing.
When it opened, the hotel where rooms start at $800 a night and go up to $25,000, had 1,600 staff from 45 countries and said it was looking to increase that to 3,500 employees this year.
At the time, South African casino mogul Solomon Kerzner told Zawya Dow Jones that the hotel industry would inevitably feel the effects of the economic turmoil, but said he was banking on Dubai in the long run and expected Atlantis, The Palm to weather the current storm.
In November, the Atlantis hotel and resort in the Bahamas - on which the Dubai hotel is modeled - laid off about 800 workers due to the global economic slowdown.
Since Atlantis, The Palm opened, the emirate's once-booming property market has slowed amid falling sales and tightening liquidity. Dubai's tourism sector has also been hit with many hotel operators slashing prices.
Earlier Tuesday, Dubai-based luxury hotel operator Jumeirah Group, which manages Dubai's iconic seven-star Burj Al Arab, said it is looking at shedding jobs amid the downturn.
By Stefania Bianchi, Dow Jones Newswires; +971 4 3644967; stefania.bianchi@dowjones.com
Copyright (c) 2009 Dow Jones & Co.
(END) Dow Jones Newswires
18-02-09 0419GMT
