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Saturday, September 29, 2001



Remember 9-11-01


Atlantis Adventures
announces 150 job cuts

The layoffs add to an increasing
trend of unemployment
in the state's No. 1 industry


By Lyn Danninger
ldanninger@starbulletin

Hawaii tourism industry layoffs continue to climb, with attractions company Atlantis Adventures announcing yesterday it would cut 150 employees, or about 30 percent of its 500 workers.

In the wake of the Sept. 11 terrorist attacks, claims for unemployment benefits are coming in at more than three times the normal rate, with the majority of claims coming from the state's No. 1 industry.

The state Department of Labor said yesterday that 3,845 people had applied for benefits in just the first four days of the week, the second full week after the attacks on New York and Washington, D.C. Claims for a normal week average about 1,400.

Last week, 3,377 people statewide filed for unemployment benefits. Since Sept. 17 a total of 7,222 claims have been filed, according to the state.

Tourist arrivals have been slammed hard since Sept. 11, and if it continues, some economists estimate that the state could lose up to 24,000 jobs as well as $1 billion in visitor spending.

Atlantis, which operates Sea Life Park, Waimea Falls Park, Atlantis Submarines and Navatek Cruises and manages the marketing for the Battleship Missouri Memorial, was the second large local company to announce layoffs yesterday.

Earlier in the day, Hawaiian Airlines said it will lay off 430 workers, 12 percent of its 3,524-employee work force, because of a decline in business following the attacks. The layoffs take effect tomorrow. Competitor Aloha Airlines earlier announced 250 layoffs, or about 8 percent of its work force of 3,000.

At Atlantis, business has dropped 40 percent since Sept. 11, according to Ronald Williams, the company's chief operating officer.

"Like all attractions statewide, we're feeling the impact of having fewer visitors come to us from the U.S. mainland and Japan markets," he said.

But staff cutbacks and other cost-saving measures should reduce the company's operating expenses by about 35 percent, Williams said.

To help offset the decrease in visitors to the attractions, Atlantis is offering special kamaaina rates to encourage local business. Some signs that the strategy is already successful were seen last weekend. Sea Life Park drew 1,600 kamaaina last weekend, Williams said.


The Associated Press contributed to this report.



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