Hospitality businesses clinging on thin hope

Since easing of the Covid-19 lockdown, most businesses have seen modest signs of recovery, but the country’s hospitality industry remains vulnerable, a mini survey by Daily Monitor has revealed.

Lockdown orders between March 2020 and June 2021 closed all pubs in the country. While the measure was aimed at addressing the resurgence in Covid-19 infections, critics claim it largely focused on restricting the operation and use of pubs.

Ms Shanita Aketch, who runs an accommodation facility, a restaurant and a bar in Njeru Municipal Council in Buikwe District, said her business has been badly affected.  

“There are some clients from the neighbourhood who buy two or three beers as takeaway but not in big quantities,” she said.

Mr Paul Lolorot, the manager of Pian Ventures Hotel, said the lockdown has reduced the number of clients. 
“People who come for accommodation first ask for food and drinks, and if you don’t [have want they want], they go away,” he said.

“You can prepare food for about three people in a day but you don’t see any customers, and you end up consuming it,” he added.

In Gulu, owners of hospitality businesses are optimistic that with lifting the ban on public transport, it will offer a big boost to their businesses.

Mr Francis Oyet, the director of Palema Crown Hotel, said the lockdown forced him to spend Shs25m to revamp his business while he was operating at half capacity.

“I had to sell off one of my properties to clear the loan and repaint the hotel rooms. Easing the lockdown means the clients, especially those who travel from outside Gulu will begin to come in since the inter-district travel ban has been lifted,” he said.

Mr Oyet had 13 staff members operating the hotel but by the time of reopening on July 30,  he had only six.
Mr Gody Otim, a furniture workshop operator at Cerellenu in Gulu City, said some of their products got damaged due to lack of customers.

“I lost business and many of my workers are in the village. Maybe with the reopening of the transport, they will come back,” Mr Otim said.

“I have some sets of furniture that have been here since February last year, and at times we are forced to sell them at half price to save them from getting damaged, but we hope that things will normalise soon.”

Mr Ismael Bala, a worker at Lule and Sons Fabrication Workshop in Gulu City, said: “The lockdown brought a lot of problems to us since many of our clients come from far places such as Amuru, Kitgum, Oyam and Omoro districts.”

In Apac, skins and hides business has been hit hard. Though the sector has never been under lockdown, dealers said they are counting losses since there is no market due to the closure of factories and departure of foreign investors following the first lockdown.

Mr Thomas Odongo, a middleman in the business in Apac Municipality, said he lost more than Shs16m in the first lockdown. “We were doing very well before the pandemic but we are now the most vulnerable group of people. We don’t have money to sustain our family, and if schools are to reopen now, we shall not be able to send our children back,” he said.

Mr Richard Okuny, a trader in Odokomac ward in Apac Municipality, said he finds it difficult to provide for his family because the price of skins has reduced drastically.

In Lira, Mr Mohammad Atik, a dealer, said the business is resuming slowly but added that cheap Chinese plastic products are out competing leather products in the market.

“If government can permit people to open up leather factories in Uganda, it would widen the market because currently, we are buying for exports only,” he said.

In Tooro Sub-region, the situation is the same. Ms Christin Ntembe, the proprietor of Bright Future Nurturing Primary School in Ntoroko District, said the closure of schools and bars has affected her the most.

“All my businesses were closed, but as a woman, I have been surviving on some small business at a landing site on Lake Albert,” she said.

In Jinja District, kiosks at Source of the Nile have been closed and merchandise shifted to people’s homes. Ms Nahia Nakanda, who was operating a canteen in Jinja City, said merchandise, especially drinks were getting expired.

“Also, the customers, most of whom are tourists, were no longer coming, and the few who kept trickling in couldn’t meet the existing supply. Other traders dealing in crafts also closed shop and shifted their merchandise,” she said.

Ms Nakanda said she survives on a weekly stipend from her husband. Ms Aisha Namawejje, a boutique owner, said she cannot afford to pay rent. “I am charged Shs300,000 per month yet customers inflow has been low since the first lockdown and the landlord can’t reduce it,’’ she said, adding that she is currently relying on her husband who is a casual labourer.

Business in Jinja

In Jinja District, kiosks at Source of the Nile have been closed and merchandise shifted to people’s homes. Ms Nahia Nakanda, who was operating a canteen in Jinja City, said merchandise, especially drinks were getting expired.

“Also, the customers, most of whom are tourists, were no longer coming, and the few who kept trickling in couldn’t meet the existing supply. Other traders dealing in crafts also closed shop and shifted their merchandise,” she said.

Ms Nakanda said she survives on a weekly stipend from her husband. Ms Aisha Namawejje, a boutique owner, said she cannot afford to pay rent. “I am charged Shs300,000 per month yet customers inflow has been low since the first lockdown and the landlord can’t reduce it,’’ she said, adding that she is currently relying on her husband who is a casual labourer.

Compiled by Bill Oketch, Philip Wafula, Santo Ojok, Abubaker Kirunda, Tausi Nakato, Denis Edema, Alex Pithua, Denis Omony, Geoffrey Okot, Alex Ashaba & Andrew Mugati