Tahiti resort closes its doors

Club Med Moorea is to close, a victim of the downturn in travel since the September 11 terrorist attacks.

Club Med head office in Paris confirmed yesterday that the Tahitian resort was among up to 20 of its 120 villages closing around the world, mostly just for the Northern Hemisphere winter.

The future of the company's Chateau Royal resort in New Caledonia was still undecided yesterday.

"Club Med is in discussions with unions right now in Noumea and has been since last Friday," the company said.

"While the closing of the village is a possibility, this would not happen immediately. In the meantime, the village continues to operate as normal."

Club Med's commercial manager for New Zealand, Sheree Porter, said yesterday that the Moorea resort would close on December 1. She did not know when it would reopen.

"It could be six months, it could be eight months."

Club Med's village on Bora Bora in French Polynesia would remain open, as would its Lindeman Island village in Queensland's Whitsunday Islands.

But Club Med said last month that it was selling its Byron Bay Beach Resort property in New South Wales as part of its global cost-cutting measures. The property is due to change hands next month.

Club Med said it would cut 243 of its 4000 permanent jobs worldwide because of the fall in demand for its holiday packages.

The company expects to save between €30 million ($65 million) and €40 million annually.

Club Med has lost more than half its market value during the past year and this week its stock fell €1.55 euros, or 3.3 per cent, to €45.15.

- NZPA