By Yunus S Saliu
As coronavirus pandemic continue creating panic across the world with yet to end grief among the people so the hotel, travel and allied sectors in The Gambia is counting the negative impacts of the pandemic on hospitality sector and country’s economy as a whole.
The negative impact as described by Fatou Mass Jobe Njie, Chairperson of the Gambia Hotel Association (GHA) is ‘Catastrophic.’
The GHA Chairperson explained that, “This sector is uniquely exposed due to the worldwide panic as a result of the Covid-19 outbreak whose duration and scope is still unknown. At the moment these sectors are confronted with this challenge that is threatening not only the existence of our individual businesses but the lives of our brothers and sisters who work and depend on the tourism industry and the nation as a whole,” she explained.
She affirmed that “the vast closure of hotels, small and medium size businesses at every level within Tourism area are having catastrophic ripple effects, hitting huge number of employees and suppliers. The ripple effect of Covid-19 is right now having a massive impact, as it wiped out an entire economic sector.”
The Chairperson added that it is heart-breaking to see that the livelihoods of thousands of people who have dedicated their lives to the Hotel, Travel and Allied sectors are being decimated; from waiters to taxi drivers, room attendants to cleaners, chefs to receptionist.
“Hotels, Tour Operators, Restaurants, Suppliers and over 100,000 Employees, are just a few of the hardest hit that suffer the most immediate repercussions, as the outbreak started during the winter months, the busiest travel season,” she noted.
At present, according to her, “most hotels are saddled with unsettled invoices from Tour Operators amounting to over D350 million dating back to December 2019. Moreover, in a recently concluded Rapid Assessment of the Impact of COVID-19 on Tourism and Related Sectors by GBOS, it is reported that during the months of April to June, an overall amount of GMD6.7 billion was reported by all establishments as the forecast loss during the period under review.”
She added further that “The hotels have reported a combined loss of GMD6.4 billion during the period, which relates to about 95 per cent of the total loss. Camps have a combined forecast loss of GMD15 million dalasi, Lodges and Eco Lodges reported a forecast loss of GMD7.7 million and GMD5.7 million respectively.”
Madam Fatou Mass-Jobe Njie went on that tourism industry over the past decade has intermittently been confronted with many external shocks such as the 2008 credit crunch, the outbreak of Ebola, the 2016 political impasse, the “Three Years Jotna”, the Thomas Cook bankruptcy Saga and now the Covid-19. “All these catastrophes will continue to impact tourism in The Gambia for many years to come,” she stressed.
Taken into consideration the current Covid-19 hard hitting realities that have economic and financial implications on the hotel, travel and allied sectors in The Gambia, the members of Gambia Hotel Association (GHA) and Tourism and Travel Association of the Gambia (TTAG), Chaired by Mrs. Liane Sallah, has called on the Gambia government to introduce measures that would provide effective support to the industry.
Given the high level exposure of the associations, she disclosed that they – GHA and TTAG have commissioned a report on the impact of COVID-19 on the Tourism, Hospitality and Allied Sectors in March 2020, in which “we proposed a five-point plan for government to take and combat the devastating effect of Covid-19, this include immediate intervention from government, financing, taxes, employee support, licences and municipality rates.”
The Chairperson of the Gambia Hotel Association (GHA) has expatiated on the GHA and TTAG proposed five-point plan for government to take and combat the devastating effect of Covid-19 as regard to hotel, tourism, hospitality and allied sectors.
Expatiating on the five-point, she said “as a matter of urgency, we demand from government to factor the tourism, hospitality and allied sectors in any emergency funds received from donors with immediate recovery assistance.”
On financing, she said “Financial institutions to restructure all existing loans and overdrafts extend moratorium of 12 months and suspend interest on all facilities to overcome our liquidity challenges and as a stimulus to prevent them from collapse. The associations (GHA, TTAG) also called on government to provide financing in the form of low interest loans etc, to enable operations post Covid-19.”
Talking about Taxes, they appeal to government “as a member of The African Tax Administration Forum (ATAF) to quickly review and adopt the ATAF guideline to the response measures African countries can consider implementing to ease the burden of the pandemic on taxpayers and to ensure business continuity.”
On the side of employee support, she said “the Associations cognizant of the negative consequences and in particular the social impact of COVID-19 would have in the employees laid off, called on Government to take care of salaries for a minimum period of five months, from April.”
She called government to implore on Social Security and Housing Finance Corporation to pay workers part of their contributions for the sake of assisting the effected persons.
Dilating over the fifty plans, licensing and municipality rates, she said “Associations demand GTBoard to give concessions to tourism establishments through introduction of waiver of operational licenses. And also, government to implore on Municipalities to also gives concessions for 2020/2021 calendar year.”
Noting that the above measures could save a vital sector that brings in essential currency and inward investment creates jobs and stimulate every sector of the country’s economy.
Both GHA and TTAG, according to Fatou Mass Jobe-Njie, acknowledge the goodwill of The Gambia government to assist the industry and appeal for a quick intervention.
In appreciation, on behalf of the GHA and TTAG, she expressed their sincere thanks and appreciation to UNDP for commissioning the rapid assessment study on the impact of Covid-19 on the Tourism and Related Sectors through GBOS, for their pro-activeness and resolves to support their employees, starting with the informal sector.
Taken into consideration the devastating situation of the hotel, travel and allied sectors in The Gambia, Fatou Mass Jobe Njie, Chairperson of Gambia Hotel Association has elaborated more on the need for constructive dialogue between the Tourism stakeholders, (the ‘raision d’etre of tourism) and the authorities in particular GTBoard.
“We need to work to be more proactive in consolidating our existing source markets, diversify our source markets and focus on our all year round tourism objective, which is more necessary now than ever before,” she stated.
Talking on recovery plan, she noted that GHA and TTAG call on Donors and Development partners to consider supporting the industry through The Gambia Government in the following areas; “funding for Joint marketing with Tour Operators in existing source markets. Such partners have a vested interest in filling their flights to capacity; have full knowledge of their terrain and knowledge of the right medium to use to reach their target audience.”
She continued continue that “funding to diversify our source markets by focusing on the sub region. The need for us to develop and implement a well-structured, result oriented and winning sub-regional marketing, this cannot be overemphasized.”
She added that funding to meet the new travel rules and regulations when the travel bans are lifted from arrival at the Banjul International Airport to departure. “It is anticipated that the entire travel/holiday experience will require new rules and regulations, which are likely to be imposed as compulsory,” she disclosed.
A case study that comes to mind according to GHA Chairperson is the World Bank’s US$12 million Growth and Competitiveness Project (GCP), in which US$ 3 million was allocated to Tourism for the purpose of marketing the destination, over a period of five years (2011 to 2015).
The Tourism Component of the GCP was a resounding success ONLY because the funds were managed by The World Bank Task Team Leader through the Local Coordinating Office and the development of the marketing activities and implementation was Private Sector led.
Adding to that, she said a Tourism Marketing Committee(TMC) was set up by the World Bank, the composition of which was mainly individuals from the private sector within the industry, an MOU signed between The World Bank and Ministry and Tourism and Culture, another MOU signed between the TMC and GTBoad, for the effective implementation of the marketing activities . Other conditions included, timely and accurate reporting by the TMC, and regular monitoring and evaluation by the Tasks Team Leader.
On this recovery aspirations, “We once again appeal to Donors and Development partners to consider a similar project to support our recovery aspirations, the planning of which should commence NOW,” she appeals.
According to Madam Jobe-Njie, another possible negative impact on the industry and the Gambian Economy as a whole is the possible withdrawal of FTI Group.
“FTI Group is currently the third largest tour operator in Europe with multiple owned and operated assets, including 70 hotels. FTI Group is one of the biggest tour operators in our market controlling over 40 % our total market. With six flights weekly using both regular flights per week bringing a total of approx. 125 passengers per week in addition to weekly charters that brings in 750 passengers from various destinations in Europe,” she explained.
Besides, she noted that the Group through Meeting Point Hotel Management Gambia, also, runs both the Kairaba Beach Hotel and Labranda Coral Beach Hotel on lease basis.
This with total contributions to taxes for the two hotels amounts to D 92.2 million (2017 to 2019) and Tour operations amounts to D 28.4 million (September 2018 to December 2019).
Madam Fatou Mass disclosed that “With Thomas Cook’s withdrawal due to bankruptcy and Covid-19, ceasing of operations of FTI Group will leave a big vacuum in the market without doubt, besides the hug economic loss both to the government, as well as the individuals employed and their beneficiaries.
However, another threat, she stressed, is the likely withdrawal of Nordic Leisure Travel Group- Scandinavia. “We are aware that the Ground Tour Operator started discussions for possible restarting of the season in October 2020. However, it will be a challenge for the Group to restart because the number of bookings for next winter is below expectations, due mainly to COVID-19 and that the company already decided to drop some popular destinations.”
“As far as destination Gambia is concern, should they decide to restart in October, they will only come with one flight of 388 passengers from Stockholm and Copenhagen, but unfortunately, they will drop the other flight of also 388 passengers from Helsinki and Gothenburg.
As partners, they are asking for The Gambia (Hotels, GTBoard, Ground Tour Operator, GIA, GCAA) to offer an attractive package discount that can convince the directors to review their decision,” she added.
