EAC lost Sh0.5tr worth of tourism receipts

East Africa Community (EAC) partner states lost international tourism receipts worth $4.8 billion (Sh500b) in the year 2020 due to Covid-19 pandemic.

A study by the African Economic Research Consortium (AERC) reveals that tourism, which contributed an average of 9.5 per cent in Gross Domestic Product (GDP) in 2019 and an average of 17.2 per cent to EAC total exports, was one of the most affected areas in the region.

This follows massive reductions in international tourist arrivals, receipts, jobs, visitors to parks and hotel occupancy rates.

From March 2020 when the first cases of Covid-19 were reported in the region, the report reveals that 4.2 million foreign tourists were unable to travel to their preferred destinations in the bloc.

Visitors to national parks declined significantly by about 65 per cent, impacting negatively wildlife conservation efforts in the region.

Average occupancy

Hotels in the region registered average occupancy rates of below 30 per cent, thus affecting their operations significantly including maintaining staff.

“Adopting an EAC coordinated approach in reviving the tourism sector by marketing the region as a single tourist destination, opening EAC skies, rolling out national-wide vaccination drives and mutual recognition of Covid-19 test certificates in the region is certainly critical,” said East African Business Councilvice chair Dennis Karera vice chairman.

EABC further said an online survey conducted as part of the study indicated that 26.5 per cent of the businesses lost their entire projected revenues during the pandemic period.

Respondents indicated that 35 per cent fired employees, 20 per cent reduced staff, 32 per cent maintained staff at partial pay and only 8 per cent maintained all staff at full pay.