Hong Kong Hotels Raising Salaries to Stop Talent Drain to Macau

Written on January 31, 2008 by a2zMacau

Hong Kong’s hotel industry have decided to increase salaries by 4 to 5 percent in order to prevent the loss of talents, particularly to Macau. In the upcoming years, quite a few grand hotels will be established in Macau, whereby the increase of salaries by the Hong Kong hotel industry could be interpreted as an act of precaution. However, local hotels are in desperate need of administrative staff.

The hotels that are to be established are believed to be continuing in their quest to recruit talent from other corporations with a salary increase of up to 50 to 100 percent . Last year, Macau’ s hotel industry faced a run-off of talents by up to 20 percent. In order to stabilise the local work force, the industry is to increase salary by 5 to 7 percent. About 42,000 employees in the Hong Kong hotel industry have received an average salary increase of 4 to 5 percent in the new fiscal year.

Last year, a few grand hotels also entered the market. They have recruited talents from other corporations in cities such as Hong Kong, Malaysia and Singapore. Among these new recruits, the administration staff from Hong Kong are their favourites. In view of the coming years, many new hotels are ready for business, while in contrast to Hong Kong employees, Macau employees are more loyal to their hotels. The strategy of salary increase by the Hong Kong hotel industry is seen to combat inflation in the short run, while stabilising work force and reducing the loss of talent in the long run.

Administration staff are still scarce in local hotels, which cannot meet the current market demand. Recruiting talent from other corporations is seen to be an irresistible trend. With the increase of grand hotels, heated competition is inevitable. But will a welcoming hand for the foreign staff hinder the promotional opportunities of local staff? Before the establishments of foreign-invested hotels, a recruitment of foreign staff meant the local market was highly valued. However, after the hotels have settled into Macau, promotion and elimination is a question of capability — a universal survival principle.

An alarm bell has rung for local hotels’ services as the number of tourists continue soaring. Prolonged check-in’s and late room services are reported, which have greatly affected the image of local hotels. An increase in salary may not guarantee prompt service.