By Edwin Ashimwe
The study highlighted that more than $4.8 billion revenue
was lost, mainly because 4.2 million foreign tourists were not able to travel
to their preferred East African Community destinations.
The report dubbed "EABC Studies on Impact of Covid-19
on Selected Sectors: Tourism & Hospitality Industry; Light Manufacturing
Sector and Agriculture & Food Security" also noted that hotels in the
region registered average occupancy rates of below 30.
The impact has also been felt across affiliated industries
and other sectors of the economy, said John Bosco Kalisa EABC chief executive
officer commenting on the findings.
Tourism is one of the leading foreign-exchange earners and
fastest-growing sectors in the EAC.
"Visitors to national parks declined significantly by
about 65 per cent and, therefore, negatively affected wildlife conservation
efforts in the region," Kalisa added.
The majority of the tourists originate from Europe, the USA
and parts of Asia.
The agency also showed that 26.5 per cent of businesses lost
their entire projected revenues during the pandemic period; 44 per cent lost 75
per cent; 17.6 per cent lost 50 per cent of their projected revenues.
What should be done?
According to the study, private sector operators want
governments to create affordable loan schemes to support the tourist sector.
Most hotels have fallen short of the crisis mainly due to
the issue of non-performing loans, according to lenders.
Experts also recommend that a review of the tourism
regulatory framework to accommodate working from home and use of digital
platforms among others.
It is estimated that a total of $57.8 million, is needed to
implement the sector's recovery plan.
The plan, as indicated earlier, is structured into six
pillars each with a number of interventions that will be implemented within the
immediate and short terms to ensure quick recovery of the sector in the region.
They include, managing the crisis, product and market
development, development of tourism and hospitality standards.
Others are human capital development, tourism research and
statistics, and environmental sustainability of the sector.
In Rwanda, an economic recovery fund has been introduced
where government availed up to Rwf350 billion to support the recovery of
businesses severely affected by the Covid-19 pandemic and among the priority
sector include the tourism and hospitality sectors.
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