ATLANTIS RESORT LAYS OFF 800 EMPLOYES

C O N F I D E N T I A L NASSAU 000796

SIPDIS

STATE FOR WHA/CAR

E.O. 12958: DECL: 11/14/2018
TAGS: ECON ELAB BF
SUBJECT: ATLANTIS RESORT LAYS OFF 800 EMPLOYES

REF: NASSAU 765

Classified By: CDA AlbertDeJong for reasons 1.4(b) and (d).


1. (U) The tlantis Resort on Paradise Island, The
ahamas, largest private employer, laid off 800 employees on
12 November. In public statements, President and Managing
Director of Kerzner International Bahamas George Markantonis
said the company had no choice but to reduce staff by 10%,
given the most severe drop in occupancy levels since 9/11.
Atlantis was forced to downsize quickly in order to save as
many jobs as possible, he said. Markantonis reported that
occupancy rates for November plunged from 70% in 2007 to 48%
in 2008. Local media have speculated about Atlantis layoffs
for weeks, and reaction to the layoffs dominated news reports
November 12-13.


2. (C) Comment: A top Bahamas Hotel Association executive
noted the Atlantis resort was overstaffed, saying the layoffs
were an exercise to get rid of non-performers and to operate
the resort with greater efficiency. He said that a number of
other hotels will follow suit, albeit with layoffs of
significantly smaller numbers. Smaller hotels in the Cable
Beach area of Nassau have already reduced staff numbers
(reftel). Ambassador Siegel was informed that Atlantis could
lay off up to 1500 employees. The ripple effect of the
Atlantis layoffs will undoubtedly impact every sector of
society. As unemployment levels continue to rise there is a
real fear among businessmen and the population at large that
crime rates too will increase. End Comment.
ELMO