The low tourism arrivals continues to affect occupancy rates in the hotel sector. PHOTO/EDGAR R BATTE
The hotel sector lost a trillion shillings in the period between March and June as the Covid-19
lockdown starved it of occupancy, according to a report authored by the Tourism Ministry.The loss was attributed to cancellation of bookings and events.
The hotel sector, which plays an important role in tourism development, has about 6,291 facilities countrywide with about 97,511 rooms and 103,261 beds, according to data from Uganda Bureau of Statistics.
The report, which highlights the impact of Covid-19 on tourism, also notes that at least 8 in 10 accommodation facilities cancelled bookings between March and June.
At least a total of 450,000 hotel room bookings were cancelled between March and June 30, which resulted into a loss of close to $320.8m (Shs1.19 trillion).
The loss, the report notes, was directly attributable to Covid-19 that continues to hold back a number of tourists from travel.
During the period, the report indicates, a number of big ticket events such as the G77 summit which had been scheduled to take place in April, were cancelled, starving the industry of delegations from 136 member states.
Others cancelled include the World Health Summit Regional Meeting, which had also been expected in April.
The two summits were being held for the first time in Africa and would be a major boost to the tourism and accommodation sector.
Many more of such events have been cancelled or postponed due to Covid-19.
The report also reveals that at least three in 10 tourism facilities had been expecting to feed off those conference through providing accommodation, tour and travel services, among others.
However, the losses, government says, will be mitigated by a more than Shs60b stimulus package that has been put in Uganda Development Bank to help tourism, hotel and related facilities shore up their operations.
The hotel sector, the report noted, is also projected to lose $500m or Shs1.8 trillion in revenue by December 2020.
The report also notes that about 2,705 workers, which is equivalent to 1 per cent of the workforce in the hotel sector, have been laid off while close to 156,718 or 57 per cent have been asked to take unpaid leave.
Thirty four per cent or 94,512 have had to take pay cuts while just 20,059 or 7.3 per cent have been lucky to get full pay.
Uncertainty
It
is not clear when employees who have been asked to go on leave will
return to work, since tourism arrivals are expected to remain subdued up
to next year, which threatens the stability of an already weakened
industry.
According to the Hotel Industry Study, the occupancy levels had, before Covid-19, been at 58 per cent. However, between March and June, it dropped to about 5.3 per cent but has been recovering since lifting the lockdown.
Occupancy rates currently stand at an average of 15 per cent and could rise up to 20 per cent by December.editorial@ug.nationmedia.coM
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