Jean-Luc Biamonti, CEO of Société des Bains de Mer, told the Monegasque press on Friday that it will be looking at ways to cut costs as the coronavirus crisis continues to take its toll on turnover and profitability as another very difficult period approaches.
However, Mr Biamonti said that there will be no closures over the winter. “Even when you close there are costs of maintenance,” he said.
“To stay open adds to the attractiveness of the Principality.”
LOSS OF BIGGER SPENDERS
SBM lost most of its long-distance clientele during the summer, notably high-spenders from the US, Latin America and the Middle East. Instead, visitors to Monaco were more local, mainly from France, Italy, Switzerland, Belgium and the Netherlands.
Turnover in July and August fell by 47 percent compared to the same period of 2019, with hotel revenues falling 44 percent. Property rentals increased by seven percent.
The crisis made its impact just two weeks before the end of the 2019/2020 financial year, which saw SBM improve its turnover by 18 percent from the previous 12 months to a total of 619.8 million euros. Profit for the financial year was 22.6 million euros compared to a loss of 9.6 million the previous year.
The second half of March made a negative impact of 15 million euros.
Only the Hotel de Paris and the Monte-Carlo Bay Hotel and Resort stayed partially open from the middle of March until the gradual reopening of SBM properties from June 2.
CHANGES ON THE WAY
Starting this autumn, SBM will be proposing “structural measures” that will help reduce expenditures in both the short and longer term, Mr Biamonti said.
One interpretation of his remarks suggests that SBM will be seeking to reduce its labour costs.
PHOTO: Jean-Luc Biamonti presents SBM’s winter plans at the Hotel Hermitage Jack Brodie