Business

COVID-19: Hotels, restaurants, aviation hardest hit businesses

The hotel, restaurant and the airline industry are the hardest hit in terms of revenue losses amid the coronavirus pandemic.

Checks by Class Business indicate that many guests have boycotted the hospitality industry whilst the number of arrivals at the airport have reduced significantly, primarily because of the directive from President Akufo-Addo, banning airlines from severe affected countries as well as the ban of more than 25 people gathering at ago.

It is believed that casual workers particularly in the hospitality industry will be retrenched or asked to take a leave until the situation improves.  The situation might be different in the aviation industry.

A casual worker with one of the boutique hotels at the Airport Residential Area told Class Business that customers have deserted the restaurant as they are recording about an average of five people per day for breakfast.

“We are recording very low patronage. It’s a difficult time but the hotel is still keeping us. The people who turn up for breakfast at the restaurant have reduced to five since the news of the coronavirus broke out”, he explained.

Director General of the Ghana Civil Aviation Authority, Ing. Simon Allotey said the interim suspension of certain flights from coming into Ghana will cost the Ghana Civil Aviation Authority (GCAA) some 20% reduction in revenue.

“Airports Company depends largely on charges levied on airport passenger charges, while the GCAA also depends on landing fees, en route charges for aircraft overflying Ghana’s airspace and the passenger safety charge. So once passenger numbers drop, there will be a corresponding decrease in passenger safety charge. For now, we can generally say there will be at least 20% dip as the situation improves or deteriorates, there could be either a further increase or decrease”,

The Ghana Hotels Association have also described the epidemic as having a severe negative impact on their business, urging government to provide some tax cuts to reduce the probable increase in operational expense.

247,799 cases of the COVID-19 disease have been recorded worldwide with 10,447 death and 89,908 recovered.

Source: classfmonline.com

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