Covid-19: Hospitality and tourism experience worst days in Mozambique – Carta

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Covid-19: Hospitality and tourism experience worst days in Mozambique – Carta

2:36 CAT | 09 Apr 2020

FILE - A view of Maputo. For illustration purposes only. [File photo: Macauhub]

Closures, suspension of activities, supply of services at half-speed and a decrease in the number of workers all characterise the current situation of Mozambique’s hotel and tourism industry, especially in the city of Maputo, Carta de Moçambique reports.

At stake are the effects of the new coronavirus (Covid-19), a disease already declared a global pandemic. Because it is highly contagious, the virus that broke out in China last December prompted leaders in every corner of the globe to take steps to contain it. One of the measures taken was the restriction, at the highest level, of the movement of people – the lifeblood of the hotel and tourism industry.

The fact is, that without circulation, it is difficult to go from one point to another (to do ‘tourism’). Without tourist activity, there is no accommodation in hotels. In the absence of hotels, catering is limited. With the current limitations, this entire business chain does not flow and the consequence is loss. In order to minimise losses (before bankruptcy), Mozambican business people operating in those sectors are, at the moment, closing and suspending the supply of some services.

This is the case of the five-star VIP Hotel, which has closed its facilities for an indefinite length of time. Visiting the site, “Carta” found that the hotel effectively closed, five days after the announcement of the first case of Covid-19 infection in Mozambique on 22 March.

“Dear customer, due to the Covid-19 pandemic that unfortunately arrived in our country, we inform you that we will temporarily close our facilities, starting on March 28, counting on returning to serve you as soon as the situation is under control,” reads the statement, dated 23 March, fixed to one of the front doors.

In a round of the country’s capital, ‘Carta’ also found the Hotel Terminus and the Radisson Blue also closed for an indefinite period, with the latter also closing its bar, gym and swimming pool.

In turn, Hotel Avenida “informs everyone that, in compliance with Decree No. 12/2020, in effect, all bars are closed”, except that “Room Service remains open 24 hours without any limitation”.

Without going on the record, a source from Hotel 2001 said that restaurant business there had fallen by 75% and accommodation by 90%. A worried source pointed out that the effects of Covid-19 plague not only the country, but the whole world.

Famous hotels Affec Gloria, Polana Serena and Pestana Rovuma also show little activity. With managements unavailable for comment, it was nevertheless clear that the hotel industry faces difficult days in the country, a fact that may lower business confidence in the future. However, during its rounds, ‘Carta’ covered not only the hotels, but also the restaurants Snack Bar Djambo, Mundus and others are working at half speed, but South Beach is among those that closed shortly after the beginning of the crisis in Mozambique.

Next to South Beach is Sagres, which is working at a slower pace. Restaurant manager Lurdes Fernandes did not hide her feelings. “Custom has fallen by 80%. As you can see, so many tables, but only two or three are occupied. The situation will affect payments to suppliers, salaries and tax obligations,” she said. To minimise the impact, said she has sent a large part of the workers home.

Without people travelling, especially out of the country, the operation of travel agencies is also unsteady. According to the President of the Association of Travel Agents and Tour Operators of Mozambique (AVITUM), Noor Momade, all 98 members of the association are at a standstill for lack of customers.

“It is chaos. The agencies are closed. Some are already laying off workers. Because of the effects of the crisis, we sent a letter to the Government, with a view to asking for incentives, from the postponement of tax payments, a line of financing and other labour measures. A favourable government reaction is the only hope for saving companies as well as jobs,” Momade said.

In the hotel and tourism business chain, transport, by road, river and air, is also affected. Data recently provided by Airports in Mozambique indicate that, due to restrictive measures taken by countries around the world, the demand for air transport decreased dramatically in March. In January, the institution registered 172,000 thousand passengers, but last month the number dropped almost 50%, to 88,000 .
Road transport

Road transport is another sub-sector affected by the crisis. In this case, the highlight is the taxi service. Pedro Ngulele, a taxi driver assigned to the VIP Hotel, told ‘Carta’ that, with the crisis, there is no more work. “Even without customers, we usual wait for someone to call. But depending on the movement here, there are no customers. The hotel is closed. Even without customers, I have to pay for the license, fuel. Even without work, the family wants bread,” Ngulele complains.

The Confederation of Economic Associations of Mozambique (CTA) anticipated, in a study released a few days ago, that the crisis caused by the pandemic would cost the Mozambican business sector between US$ 234 million and US$ 375 million. The CTA analysis shows the tourism sector worst affected, with losses estimated between US$53 million and US$71 million. Speaking to ‘Carta’, the chairman of Culture and Tourism at the CTA, Rui Monteiro, pointed out that these amounts may be surpassed if the crisis continues for more than three months.

Monteiro reiterated the need for the government to look at the study carefully, in order to adopt better fiscal, customs, labour and financial measures, with a view to ensuring the survival of companies and ensuring the recovery of their activities.

Monteiro said that a positive Government reaction was the only hope for operators in the hotel industry in Mozambique, because even if companies in the sector took measures such as closing and suspending workers, losses would nevertheless remain enormous.

By Evaristo Chilingue

Source: Carta de Moçambique