Starting July 1, South Korean gaming operator Paradise Co. undertook a series of deep cost-cutting measures, putting more executives on furlough, closing down some operations, and slashing salary levels.
According to Asia Gaming Brief, about 20 percent of the firm’s executives will be put on long-term unpaid leave or asked to retire. Since February, company executives have faced salary cuts of between 30 percent and 50 percent.
Paradise City casino near Incheon International Airport launched in 2017 with a hotel as well as a foreigners-only casino. The complex has gradually been adding non-gaming facilities since then. It is a venture between Paradise Co. and Japanese entertainment conglomerate Sega Sammy Holdings Inc.
The four Paradise Co. casinos were closed from March 24 to April 19, but had recently opened some attractions to bring in domestic customers. But a number of those attractions, including the Wonderbox indoor theme park, Cimer spa, Chroma nightclub and the Art Paradiso hotel have suspended operations again due to fears about a “second wave” of Covid-19. Those destinations will be closed “temporarily” and “until further notice,” the company stated.
Paradise City said it will fully participate in the South Korean government’s “quarantine program to reduce and prevent Covid-19. Paradise City is taking strict measures in hygiene and safety in all facilities based on the government’s social distancing scheme.”
A Paradise Co. senior executive told the local press, “Since the world’s casino industry is in danger of collapsing due to the Covid-19 pandemic, it is inevitable that we establish an emergency management system.”
Paradise Co. anticipates that its April-June 2020 total sales will come in at only about 25 percent of normal levels.
