Musanze: Hope as hospitality sector gradually recovers from Covid-19 effects

By Jean Claude Kubwimana.

When Covid-19 pandemic broke out in Rwanda, hotels, restaurants and lodges were plunged into losses like other various businesses that felt the pinch of the Coronavirus outbreak across the country.

In March alone last year, some hotels had already accumulated a combined Rwf13.2 billion in losses according to Rwanda Hoteliers’ Association (RHA).

However, current testimonies from some players in the sector in Musanze District prove the way recovery can be possible if people continue to be tested for Covid-19 and be vaccinated as well.

The Inspirer’s survey  at Fatima Hotel has found that hundred percent of the employees who had been laid-off following the measures to contain the pandemic were reinstated in  their positions according to Michel Hakizimana, an official at the hotel.

The front view of Fatima Hotel.

There are an average of 7,000 hospitality establishments (including hotels, restaurants and bars and accommodation facilities) across the country that employ over 84,000 workers.

“Nowadays we have comings and goings of clients compared to the periods of lockdowns, and; the movements mean revenues. Swimming pools and gym places are open. The restaurant operates well and clients enjoy freely, so the income has improved,” Hakizimana said, adding that it is a must for clients who need gym and swimming pool services to be tested and vaccinated for Covid-19.

However, he said there are still some challenges in the supply chain between the hotel and suppliers as they contact suppliers depending on available clients.

“Clients had reduced compared to pre-pandemic situations. Now the more we get clients the more we contact our suppliers. So the current image is not too bad,” he said.

Hakizimana commended the government efforts in combating Covid-19 pandemic that resulted in the current eased curfew hour that has enabled the business community to move on.

Fabrice Kwizera, an official at Best View Hotel in Musanze also said that there is progress in rebuilding the business after two years of struggles.

“Things are coming to normal but it is still not easy to totally recover just now considering that the last two years of the pandemic made unexpected changes in human activities such as imposed lockdowns, curfew hours and movement restrictions which have led to huge losses. I can say that we are recovering and we hope that tomorrow will be better,” He said.

He said that people are not enjoying hotel services at all as some measures including social distancing seem to be obstacles to freedom.

Hotels owners are saying that although the hotel industry is picking up bits and pieces after close to two years of inactivity, the additional cost of paying for a Covid-19 test for guests coming for meetings and other additional services is still keeping some customers away.

They also say they still need more funds to totally recover because the months of inactivity had led to damages in equipment and hotel premises and they needed additional funds to renovate and buy new equipment.

Access to recovery fund 

Kwizera said that they still encounter challenges in accessing the government’s Covid-19 recovery fund dedicated to help affected business operators due to lack of information.

“We wish to return to normal and do business as before, and we believe this will be soon possible,” He said.

The Fund was introduced in June last year with $100 million.

In the next phase, the amount is set to be increased to $350 million and the portion to small businesses through microfinance institutions could also increase.

Speaking to The Inspirer, Peter Bagirishya, Acting Mayor of Musanze District, business operators have to wait for further cabinet resolutions that may give them a green light to work at normal.

Regarding the recovery fund to affected businesses, Bagirishya said that seven hotels in Musanze were given parts of the funds and that the main criteria is to support first applicants.

He said that they continue to advocate for many business operators to access the recovery fund.

“There is not enough funds so far, but we are doing advocacy so that it may be available to support more applicants,” Bagirishya noted.

Tourism is always linked to the hospitality sector.

According to a recent report by the National Bank of Rwanda (BNR) tourism-related services have continued to suffer from the lasting impact of Covid-19, despite the economy progressively reopening.

They include transport whose growth declined by -11.6 percent from -2.8 per cent in the previous fiscal year, hotels and restaurants (-36.4 percent from -9.3 percent), as well as travel agents and tour operators (-37.6 per cent from -2.0 per cent).

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