The document discusses the risks posed by COVID-19 to Vinpearl Luxury Landmark 81 hotel in Ho Chi Minh City, Vietnam. It identifies several impacts of the pandemic: a rise in unemployment and loss of labor income, a significant drop in domestic and foreign guest numbers, and the risk that hotel businesses may close permanently if the situation persists. It estimates the severity of these risks to the hotel's operations and estimates a 30% average frequency of risks occurring due to the unprecedented global pandemic situation in 2021.
The document discusses the risks posed by COVID-19 to Vinpearl Luxury Landmark 81 hotel in Ho Chi Minh City, Vietnam. It identifies several impacts of the pandemic: a rise in unemployment and loss of labor income, a significant drop in domestic and foreign guest numbers, and the risk that hotel businesses may close permanently if the situation persists. It estimates the severity of these risks to the hotel's operations and estimates a 30% average frequency of risks occurring due to the unprecedented global pandemic situation in 2021.
The document discusses the risks posed by COVID-19 to Vinpearl Luxury Landmark 81 hotel in Ho Chi Minh City, Vietnam. It identifies several impacts of the pandemic: a rise in unemployment and loss of labor income, a significant drop in domestic and foreign guest numbers, and the risk that hotel businesses may close permanently if the situation persists. It estimates the severity of these risks to the hotel's operations and estimates a 30% average frequency of risks occurring due to the unprecedented global pandemic situation in 2021.
- Impact on unemployment and underemployment: The ILO estimates indicate that unemployment and underemployment in the hospitality industry increased continuously during the course of the covid-19 pandemic. The covid-19 pandemic has been going on for 4 months and the whole system of Vinpearl Luxury Landmark 81 had to temporarily close down, following the general directive of Ho Chi Minh City, this is a direct serious challenge to the work of all levels, the jobs of the whole people. The prospect of economic recovery as well as the restoration of the quantity and quality of employees and job training is on the verge of danger for not only the chairman of Vinpearl Luxury Landmark 81 but also a great pressure for other businesses, other high-level divisions of the company. According to preliminary estimates of the global unemployment rate of workers increased by 13 million by the ILO (of which 7.4 million are in high-income countries), although this number is not really certain, but the above rate has made an average of 22 million people unemployed, seriously affecting the global economy of Vietnam. This proves that the impact of the pandemic is really serious on the work of employees from low to high level[CITATION Int20 \l 1066 ]. Figure: Simulated data, unemployment rate forecast based on GDP growth scenario proposed by McKibbin and Fernando (2020). - Impact on labor income at all levels: The unemployment and underemployment situation in the covid-19 epidemic will become a great shock for whole workers at all levels, this situation is likely to turn to adjustments in the direction of directors having to reduce or cut wages of all workers and cut the hour working of them due to the economic downturn (the case occurred in the early days of the covid-19 pandemic, the time when employees were restricted from coming to the hotel to operate). Limiting the movement of people and freight can cause people's general income to be obstructed and restrained, leading to their low input income but high output costs, quitely large to the existence of the people. To ensure the safety of the hotel's staff in terms of quantity and quality, force them to stay at home, comply with the government's anti-covid-19 directive, and limit the exposure of the disease to their health. The hotel advocates partial subsidies for all employees at all levels. In addition, employees must live and operate on official state subsidies. Such partial support is still a burden for employees, leading to non- existent input income, resulting in a higher-than-normal payment of output costs. - Impact on the flow of domestic and foreign guests: 80% of guests staying at Vinpearl Luxury Landmark 81 are foreign guests, the remaining 20% are domestic guests. In 2020, international visitors travel to Vietnam only reached 3.7 million arrivals, down 80% compared to 2019, domestic tourists are estimated at 56 million arrivals, down 34% compared to 2019, and the total tourism revenue for the whole year in 2020 of Vinpearl Luxury Landmark 81 significantly reduced by 59% compared to 2019 [ CITATION Vin20 \l 1066 ]. In 2021, the introduction of the Covid-19 vaccine has restored part of the domestic and foreign tourist traffic. Most organizations around the world forecast that the growth of the economy will return in 2021 from 6% to 7% compared to 2020. According to the Government's approved scheme, after Vietnam takes control the covid-19 epidemic and the hotel's return to tourism activities, Vinpearl Luxury Landmark 81 quickly rejoined the key economy and caught up with the industry's growth. Vinpearl Group quickly put into operation a comprehensive hotel management system developed exclusively by VinHMS, in line with Vinpearl's business characteristics [ CITATION Vin20 \l 1066 ]. - Hotel businesses may close permanently if the epidemic situation persists: All businesses operating in Vinpearl Luxury Landmark 81 have to stop operating for a while, leading to a serious threat to the hotel in terms of revenue, passive hotels in terms of affordability, ground payment and other surcharges, sales plummeted and could not be recovered after the order travel bans, border closures and at the same time hotels had to face with strict quarantine measures, workers cannot permission to move to the workplace. In this general environment, hotels are forced to delay all investments, purchase goods and hire workers. The covid-19 epidemic will have a serious impact on the output of the labor market, causing the risk of a sudden decline in the background hotel's comprehensive economy. Thus, the risk to Vinpearl Luxury Landmark 81 is very serious. 2. Frequency of occurrence of risks: - There are two major difficulties for Vinpearl Luxury Landmark 81 come from internally and in cooperation with other stakeholders: - Internally: on human resource management and corporate culture building: Not being able to retain all the potential inherent human resources of the hotel, not having enough funding to support all employees in the human resources department. After the epidemic period gradually decreased, returning to the policy of living "The New Normal", it will take a long time for the hotel to train and re- select potential employees for the hotel. - Cooperation with other stakeholders: Most of the companies and agents that accompany them gradually cancel their support contracts or are unable to renew them further, so Vinpearl Luxury Landmark 81 falls into a state of rather large loss. After the prolonged covid-19 pandemic, the percentage calling for investors or long-term investors for the hotel is still a risk that is not easy to face, as the overall economy around the world is severely reduced, It takes a long time to recover and grow. - In addition, shopping and entertainment activities affiliated to the hotel were closed in turn, the number of guests coming to stay decreased sharply during the covid-19 pandemic and the rate of guests returning after the policy of living “The New Normal” is extremely low, quite seriously affecting the recovery of operation of Vinpearl Luxury Landmark 81 hotel. - Thus, the frequency of occurrence of risks is 30% on average due to the general situation of the world in 2021 enters the biggest covid-19 pandemic ever, every business can't seem to avoid or prevent long-term. REFERENCE LIST:
International Labor Organization. (2020). Covid-19 and Jobs: Impact and
Response. Ho Chi Minh City: https://www.ilo.org/wcmsp5/groups/public/--- asia/---ro-bangkok/---ilo-hanoi/documents/briefingnote/wcms_740946.pdf. Vinpearl Luxury Landmark 81. (2020). Annual Report 2020. Ho Chi Minh City: https://storage.googleapis.com/vinpearl-data-01/2021%2004%2009_BCTN %20Vinpearl%202020%20Final.PDF.