Hoteliers unsure of complete shutdown as COVID-19 slows business

Some hotel managers say they are still uncertain whether they will shut down their operations completely despite being affected adversely by the coronavirus.

The hospitality industry has not been spared by the impact of the pandemic; compelling managers of facilities to take tough decisions including reducing workforce by laying some staff off to stay afloat.

The E-Commerce Manager for Alisa Hotel, Nana Kwabena Kwarteng, in an interview with Citi Business News said though the company has been affected by the slowdown in business activities, shutting down completely may not be an ultimate decision.

President Akufo Addo, through an Executive Instrument, has extended the ban on public gatherings such as conferences, meetings, religious activities among others, while Ghana’s borders remain closed.

Nana Kwabena Kwarteng however admitted that some operators in the hospitality industry may have to bear the brunt if the situation extends beyond June.

“Some have overheads that go beyond them when it comes to Finance Houses and others. So it will not look good if this situation goes beyond June,” he said.

Aside generating revenue from conferences, parties and other meetings from clients, operators in the hospitality industry also benefit hugely from international travel as guests and other persons book their accommodation facilities for their stay in Ghana.

But with the closure of Ghana’s borders which has since been extended by a month, the impact on hotels and other entities is expected to linger.

“For a hotel like ours which basically dwells on conferences, with the ban on conferences and social gatherings, we have had series of cancellations upon cancellations which at the end of the day brings down our business drastically,” Nana Kwabena Kwarteng narrated to Citi Business News.

At a meeting with industry players on Tuesday [May 5, 2020], President Akufo-Addo said government is working to support the hospitality industry in the wake of the global pandemic.