City of Dreams Mediterranean cuts 181 jobs, blames Hamas for war with Israel
Mediterranean Hotels is reducing its workforce in Cyprus. Hong Kong-based gaming operator Melco Crown Resorts, which owns one of six gaming concessions in Macau, opened City of Dreams Mediterranean in July.
The €550 million ($603 million) integrated resort in Limassol has 500 luxury rooms with private balconies and views of the Akrotiri Salt Lake and the Mediterranean Sea.
The hotel features resort amenities such as indoor and outdoor pools, spa and fitness center, water park and surf simulator, theme park, retail stores, nightclub and 86,000 square feet of meeting space.
Less than three months after City of Dreams Mediterranean — Melco’s first integrated resort casino outside Macau and the Philippines — opened to much fanfare on July 10, the militant Palestinian Islamist group Hamas launched an attack on Israel . Cyprus is less than 250 miles from the Gaza Strip.
War hurts business
Melco Crown Resorts notified 181 employees at its City of Dreams in the Mediterranean this week about the layoffs. Company officials blame the slump in business on Hamas' war with Israel.
The company faces significant challenges due to the unforeseen and ongoing conflict in Israel that has significantly impacted our business operations," Melco said in a statement. "We deeply regret the negative impact this will have. We are committed to supporting them during this transition period. "
The company said the layoffs include 130 full-time employees and 51 part-time and/or contract employees.
In its Melco Third Quarter Earnings Report, City of Dreams Mediterranean reported adjusted real estate earnings before interest, taxes, depreciation and amortization (EBITDA) of $7.2 million. This resulted in an operating loss of nearly $7.8 million, primarily due to opening expenses and gambling license payments.
Tourism is vital to Cyprus' economy. The services sector contributes nearly 80% of the country's gross domestic product and employs more than seven in 10 workers.
City of Dreams Mediterranean opens with approximately 2,000 employees. Melco International executives said the company adopted a "last in, first out" approach when deciding to lay off employees.
Melco International founder, chairman and CEO Lawrence Ho was cautious about CoDMediterranean during the company's earnings release on November 7.
"Mediterranean City of Dreams and Cyprus have been hit hard by the Israeli conflict. "Our team is working hard to realign our marketing strategies," He said in brief comments about the company's latest properties.
Possible temporary ceasefire
According to CNN and other media reports, Hamas and Israel are close to reaching an agreement to stop the fighting.
Hamas is reportedly set to hand over some 50 hostages, almost all of them women and children, held by its militants. In return, Israel announced it would suspend attacks against Hamas for up to five days. Three Palestinian prisoners held in Israel would also be released if the deal is approved.
The World Health Organization said this week it was "shocked" after Israeli tanks shelled an Indonesian hospital in northern Gaza, killing at least 12 people.
Read also:
- MGM may wait before making new offer to Entain
- Prague Gaming is forming a committee to explore a possible sale
- Las Vegas crime: Tourist shot to death at a Las Vegas hotel
- Southwest Airlines' red-eye service to launch in Las Vegas in coming years
Source: www.casino.org
