The Hotel That Breathed Easy, Corona 'Panic Again'

Closure After Confirmed Case Visits
Social Distancing Raised to Level 2
Setbacks in Performance Recovery for Wedding Business

On the 17th, 'Shilla Stay Cheonan' temporarily closed after receiving notification of a confirmed case visit.

[Asia Economy Reporter Cha Min-young] The hotel industry, which was attempting a rebound thanks to the summer peak season and the government's domestic travel promotion policies, has once again fallen into a 'COVID panic.' With social distancing measures raised to level 2 and indoor capacity restrictions tightened, the wedding business has also faced setbacks.

According to Jeju Island and the hotel industry on the 18th, a group of confirmed COVID-19 cases from Gimpo who traveled to Jeju for a 3-day, 2-night trip from the 10th to the 12th stayed at 'Hanwha Resort' in Hoecheon-dong, Jeju City. The group stayed at the resort throughout their trip. Hanwha Hotels & Resorts identified the travelers' movements and implemented quarantine measures in the breakfast buffet and guest rooms, but a decline in demand for Jeju tourism and visits became inevitable. Shilla Stay, a business hotel operated by Hotel Shilla, also reported confirmed cases at its Seodaemun and Cheonan branches on the 16th and 17th, respectively. Upon notification of the visits, the hotels immediately took temporary closure measures and began disinfection. Earlier, one employee of 'Ondal,' a Korean restaurant at the Grand Walkerhill Seoul, tested positive on the night of the 14th, leading to the closure of some hotel facilities. Individual hotels are also experiencing operational confusion. Two confirmed cases in their 60s from Jeonju were confirmed to have visited the 'Riversa Hotel' in Seoul on the 13th.

Alongside the food and beverage (F&B) business, the wedding business, which has been a key profit source for hotels, has also been halted. Initially, hotel weddings were preferred over general weddings during the COVID-19 situation due to increased health concerns. They also maintained a steady reservation rate compared to room sales. However, with social distancing raised to level 2, indoor events with more than 50 people and outdoor events with more than 100 people are prohibited, leading to expected restrictions on the number of people in wedding halls. In particular, buffets within wedding halls will be included in the 15 types of high-risk facilities starting from the 19th, making dining itself impossible under level 2 measures.

After the government announced the strengthening to level 2 at the Central Disaster and Safety Countermeasures Headquarters (CDSCH) meeting on the 15th, local district offices where hotels are located have yet to establish detailed guidelines. An event manager at Hotel A in Gangnam, Seoul, said, "We are waiting for guidelines from Gangnam District Office," adding, "We are struggling to prepare countermeasures, but it is also difficult from the business side."

Concerns have grown that the rebound trend in the second half of the year might be broken, as hotels were attempting to recover from the slump. The Mondrian Hotel, a 5-star boutique hotel opening in Itaewon, canceled its press conference ahead of its grand opening on the 19th. On the 14th, Jeju's 'Grand Somorum' hotel reopened after expanding its new building. It was originally scheduled to open in the first half of this year but was postponed once due to the ongoing COVID-19 situation. The 'Grand Josun Busan,' operated by Shinsegae Chosun Hotel, has temporarily delayed its opening due to heavy rain in Haeundae but is still preparing to open.

A Hanwha Hotels & Resorts official explained, "Regarding the Gimpo confirmed case, we received a response from the Korea Disease Control and Prevention Agency after reviewing CCTV footage that normal hotel operations could continue after quarantine measures were taken." They added, "The affected room was closed for sale for three days after disinfection, and 12 surrounding rooms were also disinfected to ensure no issues."

This content was produced with the assistance of AI translation services.