By BAMUTURAKI MUSINGUZI

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Jean Byamugisha, the executive director of the Uganda Hotel Owners Association, talks about the impact of the coronavirus pandemic on the hospitality industry.

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How is the coronavirus pandemic affecting the sector?

This is by far the biggest crisis we have ever encountered. I have just read an article that predicted that tourism will fall by 50 per cent globally. It’s going to be more for us in Uganda since we rely heavily on the global market.

Currently, over 90 per cent of the hotels are closed; 95 per cent of our total workforce of more than 450,000 people is at home, with many no longer sure about their job security. We are counting losses in revenues every passing day. 

With a huge drop in occupancy as a result of travel restrictions worldwide, hotels have no business. How are you allaying the fears of workers?

Staff security is our primary concern right now. Hospitality employs 90 per cent of the total workforce in the tourism industry in Uganda. Some 77 per cent of our staff are young people aged between 18 and 30.

Hotels have been asked to furlough rather than lay off staff. Many have been asked to take their annual and any other pending leave, and be paid a fraction of their salaries.

How is the association helping hotel owners respond to the crisis?

We formed a crisis committee. Our first point of action, led by the chair, Susan Muhwezi, was to write a letter to the Minister of Finance detailing the effects and economic impact of the coronavirus on the tourism industry.

We have also engaged development partners on a post-coronavirus recovery plan.

We are engaging the Ministry of Labour on the issue of staff and job security.

The Cabinet is working out a stimulus package for companies facing financial challenges during the coronavirus lockdown. How much do you think should go to the hospitality industry?

Uganda’s biggest foreign exchange earner is the tourism industry, which is also one of the biggest employers. Hotels pay a lot of tax. Surely these facts speak to the urgency of a stimulus package for the hotel sector.

Uganda was grappling with low room occupancy rates even before this pandemic...

Actually since 2016, tourism had been on an upward trajectory.

There has been an increase in tourist arrivals and in occupancy rates.

Domestic tourism was still low and the State Minister of Tourism had taken this on through the Tulambule campaign that was gaining interest among Ugandans. This crisis has set us several years back, but we are hopeful that we shall overcome. 

Are there enough hotel rooms to cater for high numbers of tourists?

Yes, in fact we had turned our focus to Mice (meetings, incentives, conferences and events) to fill up the rooms available.

Many international chains are building hotels in Kampala to meet the demand for hotel rooms for the Mice market. Our big challenge now will be that we have more rooms than tourists for the next few months, and yet the over heads will remain constant.

 According to the association, hotel proprietors pay multiple taxes. How does this affect the sector?

Hotels pay 25 different types of taxes and licences. Many of these are duplicates. This is outside the constant overhead costs of water and electricity every month, and interest on loans that sometimes goes to 23 per cent.

Until recently the occupancy rates for most of the hotels outside Kampala were less than 40 per cent. For a hotel to break even it must have an occupancy rate of more than 40 per cent. It will be difficult for the tourism sector to recover without assistance from the government.

How does the Ugandan hotel industry compare with the rest of the region?

Uganda is competing favourably in the East African market and we had started to position ourselves as the Mice destination of choice. We hope that we can continue this growth.

What is Uganda's greatest strength in terms of tourism?

We have a good wildlife. Gorillas remain our biggest selling point. Mice was also gaining traction as a tourism product. 

What do you like about the industry?       

The hospitality industry is dynamic with new trends coming up regularly, and this keeps me on my toes. I love my job, I love the people I work for and with and I enjoy every moment.