(4 minutes read)
· More than 90 percent of employees in the hospitality sector
in Kenya were laid off in April, thanks to the pandemic, which slowed
down the economic activities, according to a study
· Close to 95 percent of hotels had experienced over 90 percent
cancellation of bookings for April, May, and June due to Covid-19
outbreak, which disrupted the supply chains, led to lockdown and
brought travelling to zero level due to a ban on flying imposed by
most of the countries.
More than 90 percent of employees in the hospitality sector in Kenya
were laid off in April, thanks to the pandemic, which slowed down the
economic activities, according to a study. Workers retrenched were
mostly on casual, permanent, and contracted duties. Hospitality
industry expects that the pandemic fall out to continue for another
period of 3 to 6 months.
Cancellation of hotel bookings during the pandemic was severe. Close
to 95 percent of hotels had experienced over 90 percent cancellation
of bookings for April, May, and June due to Covid-19 outbreak, which
disrupted the supply chains, led to lockdown and brought travelling to
zero level due to a ban on flying imposed by most of the countries.
More than 60 percent of the industry players forecast over 90 percent
loss in 2020 due to cancellations and closures as most respondents
expected closures to extend into the next 3 – 6 months. The impact of
the pandemic will continue in the second half of 2020, which used to
be the season for peaking the revenues of the hospitality sector
because of the tourist season.
The study coincides with the government’s efforts to reopen the sector
by gradually lifting the lockdown to rescue the economy under the
strict Ministry of Health guidelines. Many in the hotel sector are
gearing up to commence their operations. But they apprehend it may
take time to bring the business on rail.
