Coronavirus has brought the county’s tourism and hotel industry sector to its knees.
Tourist cancellations have reached 100 per cent due to the pandemic and within weeks, various hotels have turned into white elephants, making back-to-back losses.
After the government confirmed 14 coronavirus cases, the situation went from bad to worse, forcing investors to ask thousands of employees to go home.
As a result, tycoon Sudhir Ruparelia has closed down most of his hotel empire including the flagship and award winning five-star Speke Resort and Commomwealth Resort in Munyonyo until further notice.
Dolphin Suites in Bugolobi and Forest Cottages in Naguru, part of the Speke Group of Hotels will also close their doors.
“The impact of coronavirus is real and it hit all of us by surprise and we don’t know when it is going to end,” Mr Ruparelia said as he confirmed shutting down the hotels and sending home at least 1,000 workers. He also revealed that an additional 2,000 workers are expected to go home in the coming days.
The property magnate who was recently named Honorary Consul of Nepal to Uganda revealed that a small section of Kabira Country Club will remain open.
Other governments have come up with measures to support businesses and protect jobs. “We are asking government to intervene before it is too late. They should find a way to support businesses to stay afloat. Expenses such as taxes, water and electricity should be looked into,” he said.
According to reports, more than 80 per cent of hotels across the country have already closed business and that in the next one or two weeks, the rest may follow suit.
Mr Jean Byamugisha, the chief executive officer of Uganda Hotel Owners Association, said the situation is dire.
“The situation is even worse than what we are seeing. Many people are only beginning to realise the consequence because now big hotels are closing. Already about 80 per cent of the hotels upcountry and across the country have closed,” Mr Byamugisha said.
Uganda’s tourism industry employs up to about 600,000 people, with more than half of them working in the hospitality sector.
Mr Byamugisha warned that if the government doesn’t intervene, the worst is yet to happen.
“The situation is that bad, it is not the rich hotel owners asking for a bail out. No, all hotels are in distress and it is because we employ very many people and we are now rendering them jobless. They are going home without money even to take care of their families. The situation is bad,” he said.
He said most of the hotels are now maintaining security guards to keep the premises safe. He also added that those that can still afford to keep staff confined them within the hotel premises because it is both cheap and reduces the risk if infecting the staff.
