Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Monday, August 8, 2022
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN
MICE Tourism in East Africa Source: Beyond Summits Ltd

MICE Tourism in East Africa Source: Beyond Summits Ltd

How Covid-19 has affected regional tourism

Tourism is one of the largest foreign exchange earners and fastest-growing sectors in the East African Community (EAC). According to the EAC Secretariat, tourist arrivals in the EAC region increased from 3.5 million persons in 2006 to about 7 million in 2019.

by Kawira Mutisya
May 5, 2021
in Countries, East Africa
0
Share on FacebookShare on LinkedIn

East Africa Community (EAC) the Partner States are estimated to have lost international tourism receipts to the tune of  $ 4.8 Billion in the year 2020, following the Covid-19 pandemic.

This follows a study by the East African Business Council (EABC) with the support of the African Economic Research Consortium (AERC) and Bill and Melinda Gates Foundation: aimed at assessing the impact of COVID-19 on the tourism and hospitality industry and policy options to protect sector players from COVID-19 disruptions and future pandemics.

Tourism is one of the largest foreign exchange earners and fastest-growing sectors in the East African Community (EAC). According to the EAC Secretariat, tourist arrivals in the EAC region increased from 3.5 million persons in 2006 to about 7 million in 2019. Tourism contributed to the Gross Domestic Product (GDP) of the EAC Partner States by an average of 9.5% in 2019. It contributed an average of 17.2% to EAC total exports and 7.1% to employment. However, the upward trajectory in tourism in the region with its positive impact on the economy was devastatingly affected by the onset of COVID-19 pandemic in March 2020.

The study reveals that tourism which contributed an average of 9.5% in  GDP in 2019 and an average of 17.2% to EAC total exports, was one of the most affected areas in the region. This was reflected in massive reductions in international tourist arrivals, receipts, jobs, visitors to parks and hotel occupancy rates.

From March 2020 when the first cases of Covid-19 were reported in the region, the report reveals that 4.2 Million foreign tourists were unable to travel to their preferred destinations in the bloc.

This saw a dip of about 2 million jobs, from the about 4.1 million jobs recorded in 2019  to 2.2 million jobs by the end of the year.

The study also revealed that visitors to national parks declined significantly by about 65%, impacting negatively wildlife conservation efforts in the region.

The study also shows that hotels in the region registered average occupancy rates of below 30% thus affecting their operations significantly including maintaining staff.

An online survey conducted as part of the study indicated that 26.5% of the businesses lost their entire projected revenues during the pandemic period, 44% lost 75% of their projected revenue and 17.6% lost 50% of their projected revenues.

The respondents indicated that 35% reduced staff by more than 50%, 20% reduced staff by below and up to 50%, 32% maintained staff at partial pay and only 8% maintained all staff at full pay.

Also Read: EABC push for Open Skies Policy to boost trade, tourism

Tourism is one of the largest foreign exchange earners and fastest-growing sectors in the East African Community (EAC). According to the EAC Secretariat, tourist arrivals in the EAC region increased from 3.5 million persons in 2006 to about 7 million in 2019. Tourism contributed to the Gross Domestic Product (GDP) of the EAC Partner States by an average of 9.5% in 2019. It contributed an average of 17.2% to EAC total exports and 7.1% to employment. However, the upward trajectory in tourism in the region with its positive impact on the economy was devastatingly affected by the onset of COVID-19 pandemic in March 2020.

Covid-19 in Africa
Covid-19 in Africa

The report indicates that businesses turned to borrowing to fund their running expenditures such as rent and utilities due to reduced operational capital while the loss of jobs saw a decline in household incomes,

Speaking during a webinar validating the studies, Mr. Dennis Karera, EABC Vice Chairman noted that the study will contribute to developing macro-economic policy options for consideration and adoption by EAC Partner States.

“ Adopting an EAC coordinated approach in reviving the tourism sector by marketing the region as a single tourist destination, opening EAC skies, rolling out national-wide vaccination drives and mutual recognition of COVID-19 test certificates in the region is certainly critical,” he said.

The Study recommended for tourism destinations to have pandemic preparedness and risk management plans to minimize such instances in the future.

According to the Chairman of the Kenya Tourism Federation (KTF) Mr Mohammed Hersi, the cessation of movements has been lifted is good news but Covid19 does not respect memos or Presidential announcement.

“Wear Mask. Sanitise.  Wash Hands. Social distance. Those who lock themselves in bars and dim lights, it is not the Government of Kenya that will struggle to breath. You will take the virus to your wife even parents.” He warned.

Mr Hersi also called upon the pub owners to observe the Covid-19 safety regulations.

“To the pub owners who allow revelers to drink inside their bars past curfew hours it is the like of you who make nonsense of all the hard work when rest of hospitality industry is following the guidelines and protocols to the letter.  I promise you one thing; you’ll closed down.” He says.

The chairman has called upon all the service providers in the hospitality sector to observe the set regulations in order

“…As always I choose to remain an optimist that we shall overcome…” he adds.

The report also revealed that the tourism stakeholders are calling for the sustaining of stimulus packages provided by EAC Governments to re-engineer and re-define the tourism products by also leveraging digital technologies in tourism marketing and promotion.

Also Read: Zimbabwe prepares itself ahead of a tourism recovery

Tags: Doing business in East AfricaEast African Community (EAC)Tembea KenyaTourism

STATE OF ECONOMY - GET THE REPORT

ASSESSING EAST AFRICA

Loading...

Kawira Mutisya

Yvonne Kawira is an award winning journalist with an interest in matters, regional trade, tourism, entrepreneurship and aviation. She has been practicing for six years and has a degree in mass communication from St Paul’s University.

Related Posts

Countries

Kenyan elections and NSE, investors to adopt precautionary behaviour

August 3, 2022
The leaders of the BRICS nations meet at the group’s summit in Osaka in June 2019. Concerns are India might pull out of the group over tensions with China. (Photo/ Reuters)
Countries

What does Russia’s invasion of Ukraine mean for Southern Africa?

August 3, 2022
Countries

List of African countries with highest defence spending budgets

August 3, 2022
Next Post

Mergers and Acquisitions in African Fintech

East African countries benefit from IMF’s $142m debt relief

The Poor Man In Bill Gates

Please login to join discussion




This months edition

Features

The leaders of the BRICS nations meet at the group’s summit in Osaka in June 2019. Concerns are India might pull out of the group over tensions with China. (Photo/ Reuters)
Countries

What does Russia’s invasion of Ukraine mean for Southern Africa?

by Albert Nangara
August 3, 2022
0

When the United Nations General Assembly voted overwhelmingly on March 2 to condemn Russia’s invasion of Ukraine, African countries accounted...

Read more
Logistics and transport startups will play a major role in enabling Africa’s largest free-trade area (Photo/ Quartz Africa)
Industry and Trade

Trends shaping the future of logistics in African markets

by Albert Nangara
August 3, 2022
0

Digitization of logistics and compliance with sustainability policies will shape the future of logistics in African markets. Digitalization involves the...

Read more
Biometric systems are expected to lead the market for airport security systems in growth over the next five years, as the market increases at an 8 per cent CAGR through 2024 (Photo/ Biometric Updates).
Tech & Business

Machine learning, Artificial Intelligence changing Africa’s Airports

by Albert Nangara
August 2, 2022
0

According to Frontiers, AI has been recognized to have a wide potential to reduce human workload or increase human capabilities...

Read more
www.theexchange.africa/
Investing

ESG global mining and the social license

by Laurence Sithole
August 2, 2022
0

In terms of achieving net zero carbon emissions, the largest mining companies in the world have several options – each...

Read more
Some of the group members learning the components of the new briquette making machine. The machine can produce 500 briquettes per day. www.theexchange.africa
Investing

Reusable, organic charcoal: Answer to Africa’s cooking fuel challenges

by Njenga Hakeenah
August 2, 2022
0

United for Green is working to ensure that Africans do not get to these extremes. By empowering women, the plan...

Read more

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap

No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Powered by MediapixManaged by Supported by Digihandler,

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In