Mandarin Oriental reportedly mulls temporarily relocating key execs out of HK

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Mandarin Oriental Hotel Group is reportedly pushing for its key executives to be temporarily out of Hong Kong due to the city's stringent pandemic control strategy that caused its management to be grounded, said a recent report from Financial Times. The report said due to Hong Kong's strict pandemic-related restrictions, Mandarin Oriental's chief executive James Riley shared it was not feasible for his team to remain in Hong Kong, where the government closed schools, gyms and restaurants after 6pm to combat a surge in cases.

One key departure for the brand was Mandarin Oriental's chief operating officer Christoph Mares who left 15 months ago. Riley said he had no plan for him to come back because of the situation in the city, adding that his staff "can’t go and visit a hotel, visit a customer, or visit a potential owner. You can’t go anywhere." Riley said as a base to run a business, Hong Kong is "very, very poor today." However, he said recovery will be possible after Hong Kong regains freedom of movement. Currently, Mandarin Oriental Hotel Group is running two hotels in Hong Kong, including Mandarin Oriental, Hong Kong and The Landmark Mandarin Oriental.

Mandarin Oriental's concerns are not isolated as most recently Bank of America started plans of relocating staff from Hong Kong to Singapore due to the city's COVID-19 control measures, said multiple media reports. Financial Times said the bank’s management was identifying workers who can relocate to Singapore and considering roles in some of its business lines and operations. The report even said although the plan is still in the early stage of figuring out employees who want to quit Hong Kong, the process has started.

Other companies that operate in Hong Kong include Royal Caribbean which was recently hit following Hong Kong’s extension of COVID-19 prevention measures. Royal Caribbean has since cancelled the remainder of its 2022 Hong Kong cruise-to-nowhere season. Royal Caribbean said the extension and the uncertainty of the situation in Hong Kong "impact the cruise line’s commitment to delivering the memorable holidays" to guests.

“Our most prudent course of action is to cancel the season. While we have received an amazing response from those who have sailed, we do not want our future guests to be in a difficult situation because of this uncertainty,” said Bert Hernandez, president, China, Royal Caribbean International.

Earlier the American Chamber of Commerce (AmCham) said that travel restrictions were pushing its members away as more than half of respondents said they would leave the city, while the majority of businesses felt the government was “unconcerned” or “dismissive” about business concerns.

In its 2022 Business Sentiment Survey Report, AmCham examined a wide array of issues among its members. Around 53% of respondents said the restrictions related to the pandemic had spurred them to leave Hong Kong. Only 10% of them said they were "less unlikely" and "much less likely" to leave the city.

Hong Kong’s international travel restrictions to contain COVID-19 weighed heavily on both company and personal sentiment. With six out of 10 businesses based in Hong Kong as part of the global or regional headquarters, hefty quarantine rules and travel restrictions continued are said to be creating “significant disruptions” in offices outside Hong Kong. Over 30% of respondents had to delay new investments in Hong Kong, and 30% struggled to fill senior executive roles.

Travel restrictions also weighed heavily on sentiment about living in Hong Kong, from both a company and personal perspective. Over 40% were more likely to leave the city from a personal perspective, and over 25% of companies said they were more likely to leave Hong Kong.

(Photo courtesy: 123rf)

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