Tourism: 35% of businesses foresee closure
ELLANIE SMIT
WINDHOEK
More than 50% of 485 surveyed tourism businesses in Namibia have indicated that they have either retrenched workers or reduced employee salaries due to the Covid-19 pandemic.
A whopping 35% of businesses surveyed claim that there is a possibility for closure, especially if the pandemic would have lasted beyond June.
This is according to a presentation made on the Socio-Economic Impact Assessment (SEIA) of the pandemic on the tourism sector in Namibia.
Data was collected between 20 November 2020 and 9 February from 485 tourism-related businesses.
A total of 97% of businesses report either a moderate or significant decline in the number of visitors since the advent of Covid-19, while 97% also indicated that they suffered a drop in demand.
Furthermore, 93% reported decline in revenue.
Scaling down
According to the presentation, with 90% of the surveyed firms being micro and small, the scaling down of operations and capital loss will prove to be painfully hard to regain.
“Although the loss seems to have been larger for businesses dependent on foreign tourists, local tourism has not been strong enough to offset the losses incurred by almost the totality of businesses.”
Concerning women employment, it said one in four women employed in the tourism sector have lost their jobs.
Meanwhile with regards to working hours, 79% of businesses reported having to reduce their staff hours.
Supply chains in the tourism industry have also been significantly disrupted, with 68% of businesses reporting drops in the procurement of inputs to be resold.
The presentation noted that government intervention has been overall deemed inadequate and insufficient by 60% of businesses, with 75% of them having not received any assistance at all.
Quite noticeably, 67% of the respondents claim a lack of government awareness towards the needs of private sector entities.
Before the advent of Covid-19, 83% of respondents (400 out of 485) were either very optimistic or optimistic about the future of their business and the future of tourism in Namibia. However, 75% of those are no longer optimistic.
WINDHOEK
More than 50% of 485 surveyed tourism businesses in Namibia have indicated that they have either retrenched workers or reduced employee salaries due to the Covid-19 pandemic.
A whopping 35% of businesses surveyed claim that there is a possibility for closure, especially if the pandemic would have lasted beyond June.
This is according to a presentation made on the Socio-Economic Impact Assessment (SEIA) of the pandemic on the tourism sector in Namibia.
Data was collected between 20 November 2020 and 9 February from 485 tourism-related businesses.
A total of 97% of businesses report either a moderate or significant decline in the number of visitors since the advent of Covid-19, while 97% also indicated that they suffered a drop in demand.
Furthermore, 93% reported decline in revenue.
Scaling down
According to the presentation, with 90% of the surveyed firms being micro and small, the scaling down of operations and capital loss will prove to be painfully hard to regain.
“Although the loss seems to have been larger for businesses dependent on foreign tourists, local tourism has not been strong enough to offset the losses incurred by almost the totality of businesses.”
Concerning women employment, it said one in four women employed in the tourism sector have lost their jobs.
Meanwhile with regards to working hours, 79% of businesses reported having to reduce their staff hours.
Supply chains in the tourism industry have also been significantly disrupted, with 68% of businesses reporting drops in the procurement of inputs to be resold.
The presentation noted that government intervention has been overall deemed inadequate and insufficient by 60% of businesses, with 75% of them having not received any assistance at all.
Quite noticeably, 67% of the respondents claim a lack of government awareness towards the needs of private sector entities.
Before the advent of Covid-19, 83% of respondents (400 out of 485) were either very optimistic or optimistic about the future of their business and the future of tourism in Namibia. However, 75% of those are no longer optimistic.
Comments
Namibian Sun
No comments have been left on this article