Hotels, workers failing to cope with Covid-19 effects

Ms Doreen Ageno, 29, a worker at a five-star hotel in Kampala, was happy to go back home after President Museveni announced a lockdown in March as a measure to prevent the spread of coronavirus. 

Some of her colleagues also celebrated since they would have time off from a demanding schedule.

However, as months went by, they began to be filled with anxiety and uncertainty because many had depleted their savings, and the call to return to work did not come soon. 

 “It was good at first until we heard that all contract staff were stopped with immediate effect. And those who were about to retire were to be paid gratuity and sent off. Currently, there are very few people working. [Some of us who are permanent staff get a small allowance, like Shs120,000 per month,” Ms Ageno told Daily Monitor.

Eight months later, the future looks bleak for Ageno and her colleagues. 

Ms Susan Muhwezi, the Uganda Hotel Owners Association chairperson and vice to the Uganda Tourism Board, says the drawbacks in the tourism sector occasioned by the Covid-19 pandemic have greatly affected the hospitality sector and livelihoods of their workers.

Ms Muhwezi says the sector had about eight of 10 bookings and reservations cancelled between March and June when Uganda imposed a strict lockdown and curfew.

“Hotels have lost close to $320 million since March in business. There was a projection that we could lose close to $500m by the end of 2020 if the pandemic continues. Eighty-five per cent of all booked conferences were cancelled. About 57.2 per cent of our staff in the hotel sector are on unpaid leave while 34.5 per cent of staff are on pay cut and about 7.3 per cent are still on full pay,” she says.

For Ms Ageno, the situation is worsened by her illness that requires bed rest as recommended by the doctor. She is, however, wants to earn a living to meet her treatment costs.  

“I was called to go back and work but I cannot because of my condition. I told human resource that I could only resume when I get well. I hear that some of my colleagues come and beg the human resource to allow them come back to work,” Ms Ageno says. 

She says her allowance can no longer cater for her medical bills. 

“It’s an allowance but it is as good as nothing. I have a loan and they are even [recovering] from the little allowance that I get. It was a salary loan and now I rely on my husband’s meagre earning. He is a government employee and their salary also delays,” she adds. 

Blessing in disguise

Mr Bengamine Mugera, a father of two, had to adjust and move on with his life immediately his employer laid him off.

Mr Mugera,36,  assessed the situation and realised that life in Kampala without money, would be close to impossible.

He travelled to his village in Ntoroko District to look after his cows. The former accountant at one of Uganda’s five star hotels does not regret making this decision. Mr Mugera has since started a money lending business. 

“I had not set up any business in the village before and when you are a cattle keeper, the only time you get money is when you sell the cattle. I had to think of ways of surviving. Now I have seen change in my life. I am okay with what I am doing now, I just want to grow my own business now. I do not think I want to go back to my former work again,” the accountant told Daily Monitor. 

Whereas the hospitality sector is struggling to get back on its feet, some of the experienced and good employees may never return to it. 

Coronavirus still poses a risk to many sectors of the economy but health experts have advised people to learn to live with the virus while observing the standard operating procedures. 

The hospitality and tourism sector are correlated, the progress of the tourism industry will directly impact on the growth of the hospitality business. 

Uganda has 6,291 hotels employing more than 273,994 people but with the disruption in travel and tourism, the biggest contributors to the hospitality sector, the sector is staggering.  About 156,718 (57.2 per cent) of staff are on unpaid leave. 

Data from Uganda Hotel Owners’ Association further states that 94,512 (34.5 per cent) of all staff have experienced pay cuts, 20,059 (7.3 per cent) are still on full pay while only 2,705 (1 per cent) have been officially laid off.

It is projected that 66 per cent of jobs in the hotel industry will be lost by December 2020.

During the launch of the Italian cultural celebration, the Italian Ambassador to Uganda, Massimilliano Mazzanti, said they are willing to promote Uganda to attract more tourists from Italy through training local chefs because food and hospitality go hand-in-hand with tourism. 

Ms Muhwezi is also optimistic that some initiatives such as the cultural and culinary week give hope that the reopening of the airport will revive the devastated hospitality sector.  

The acting Permanent Secretary in the Ministry of Tourism, Dr Akankwasa Barirega, concurs that this is an avenue to show Uganda’s hospitality and adaptability to different cultures to enable tourism thrive.

“Uganda’s tourism can be boosted if people are sure that they have the foods and cultures that they can easily fit in and can become repeat tourists. There is more joy in going to a place where you can have your own food,” Dr Barirega said. 

The ministry indicates that tourism was contributing about $1.6 billion that translates to about 7.7 per cent of Uganda’s gross domestic product as of the last count before the coronavirus disruptions in travel and other preventive measures.