A strike by some staff at the Sheraton Hotel in the French Polynesian capital, Papeete, has prompted management to close the hotel for the time being.
The stoppage was called in protest at the dismissal of 18 workers but the hotel management now says it can no longer provide the service required for a top hotel.
The temporary closure puts 130 employees out of work.
The management says the guests will be transferred to other hotels.
The dispute comes amid a downturn in tourist numbers and at a time when two new hotels are about to be opened.