Rwanda‘s hospitality industry seeks bail-out to cushion COVID-19 impact

The COVID-19 pandemic has brought immense challenges to Rwanda's hospitality industry, with a significant impact on operations and revenue. Nsengiyumva Barakabuye, President of the Rwanda Hospitality Association, highlighted the severe consequences of the outbreak on the sector in a recent interview with CNBC Africa. Barakabuye explained that the restrictions imposed to curb the spread of the virus have forced hotels to close various services such as meetings, entertainment venues, swimming pools, saunas, and massage facilities, resulting in substantial financial losses. The uncertainty surrounding the duration of the pandemic further exacerbates the industry's vulnerability, as there is no clear timeline for when operations can fully resume. Barakabuye mentioned that the association is in the process of assessing the extent of the losses incurred by hotels, with preliminary data indicating a significant decline in bookings and reservations. While specific financial figures are yet to be determined, Barakabuye estimated that up to 45% of room bookings and 95% of reservations were cancelled by establishments as of yesterday. The ongoing impact of the pandemic may lead to inevitable job cuts within the industry, as businesses struggle to sustain their operations amid prolonged closures and reduced revenue. Barakabuye emphasized that companies without substantial savings or access to credit may face the hardest challenges in meeting payroll and other fixed costs, potentially resulting in layoffs for both casual and contracted staff. In response to the crisis, the Rwanda Hospitality Association has engaged in discussions with government officials, including the Ministry of Commerce, to explore potential relief measures for the sector. Barakabuye expressed optimism regarding the government's willingness to support the industry during these challenging times, with discussions ongoing to address issues such as financial assistance, tax waivers, and other forms of relief to help hospitality businesses weather the economic impact of the pandemic.