Surviving the Covid-19 Pandemic: an Exploration of Coping Mechanisms for Selected Hotels and Guesthouses in Kampala

Thesis Submitted to the Directorate of Research and Graduate Training in Partial Fulfillment of the Requirements for the Award of Master of Science in Environment and Natural Resources Management of Makerere University

The hospitality sector promotes sustainable development through job creation, promotion of international trade and contribution to gross domestic product (GDP). The outbreak of COVID-19 pandemic and the accompanying lockdown measures adversely affected tourism and hospitality industry with a spillover effect onto the national economy. This study investigated the effects of COVID-19 pandemic on selected hotels and guest houses in three divisions of Kampala city namely, Central, Makindye and Nakawa and the coping strategies they adopted. The objectives of the study were to profile selected hotels and guest houses in the divisions, to examine how they were affected by COVID-19 pandemic and the coping mechanisms they adopted to survive the effects of the COVID-19 pandemic. A qualitative cross-sectional case study design was adopted to obtain data from the hotels and guest houses within the selected divisions of Kampala city. 28 hotels and 22 guest houses were profiled in the three divisions and 152 respondents interviewed using a semi-structured questionnaire. Data were summarized in SPSS and subjected to a one-way analysis of variance to show variations in the services offered by the hotels and guest houses in the wake of COVID-19 outbreak. The study revealed that most of the respondents were females (58.6%) and the rest were males 41.4%, majority (58.6%) were 26-30 years old. Out of 50 hotels and guest houses, 18 were in Central Division, 19 in Makindye Division and 13 in Nakawa Division. Out of the 18 hospitality facilities in Central Division, 11 were classified as 1-star to 5-star whereas eight were unclassified. Out of the 19 hospitality facilities in Makindye Division, 11 were unclassified while two were classified as 2-star, two as 3-star and two as 4-star. Out of the 13 facilities profiled in Nakawa Division, seven were unclassified while one was classified as 2-star, three as 3-star and two as 4- star. The services offered in the order of magnitudes were restaurant’s (mean=13.3), bars (11.3) and conference halls (mean=8.7). Central Division had the highest number of hotel rooms (n=1,508) and guest house rooms (n=166) compared to Makindye Division with 351 hotel rooms, 95 guest house rooms and Nakawa Division with 347 hotel rooms and 136 guest house rooms respectively. Furthermore, there were more double/standard rooms (n=672) and single rooms (n=416) in the hotels and guest houses in Central Division compared to 110 hotel rooms and 167 rooms guest houses rooms in Makindye Division while in Nakawa Division there were 137 hotel rooms and 220 guest houses rooms. Furthermore, 1,335 people were employed in the profiled hotels and guest houses before the outbreak of COVID-19; the number dropped to 785 (58.8%) during COVID-19 lockdown measures while the rest were laid off. Results further indicate that COVID-19 outbreak decreased the number of customers, revenue, and profits. Hotels and guest houses did not close business completely, staff did not work in shifts, and the premises were not converted to other types of businesses because the government ensured that hotels and guest houses put the following measures into practice such as sanitary precautions every time like washing hands, wearing masks, social distancing includes refraining from hand shaking and hugging, mopping all indoors areas like entrance lobbies, corridors and staircase with disinfectant and facilities also laid off some workers to reduce on the overcrowding within the facilities, reduced on the rates on the services provided with in the facilities for example some hotels reduced on the amount charged per room etc. It is recommended that managers should adopt pricing strategies that respond to the customers’ needs, reduce costs of operations during times of crises and seek discounts from suppliers, distributors and tour operators and marketers. In addition, they should embrace digital promotion and marketing strategies and include crises management approaches in their business plans.

GERMAN ACADEMIC EXCHANGE SERVICE (DAAD)