The Effect of Covid 19 Pandemic on Hotel Patronage in Some Selected Hotels in Etsako West Local Government Area
CHAPTER ONE
Objective of the study
The primary aim of this study is to examine the effect of covid-19 on the patronage level of hotels in Estako West of Edo state. Specifically, the study seeks to:
- Ascertain the frequency of hotel users to hotels.
- Ascertain the revenue level of hotel operators in Estako West Local government.
- Evaluate the loss incurred by hotel operators as a result of covid-19 pandemic.
CHAPTER TWO
LITERATURE REVIEW
Introduction
Coronavirus 2019 or COVID-19 is a new infectious disease first identified in December 2019 in Wuhan, capital of China’s Hubei province. It spread rapidly across Asia and worldwide, causing a global public health crisis within a short period of time. On March 11, the World Health Organization declared COVID-19 a pandemic. Several measures including national lockdowns and school closures have been implemented to slow the spread of COVID-19.
Tourism accounts for 10% of world GDP and jobs (WEF, 2020) and is among the sectors worst affected by COVID-19. The hospitality industry is in crisis due to worldwide panic about COVID-19 whose duration and scope are still unknown. Many countries which depend heavily on tourism are experiencing a devastating economic blow. However, the impact of COVID-19 on tourism is a global concern; passenger numbers have decreased dramatically, trips have been canceled, and major public events have been canceled or postponed putting many jobs at risk and causing much decreased revenue from tourism. According to the World Travel and Tourism Council (2020), up to 75 million jobs are at risk and this figure could change as the virus evolves which would cause huge loss to the world economy.
UNWTO (2020) made an initial assessment based on the 2003 SARS scenario, on the size and dynamics of global travel and current disruptions, and the geographic spread of COVID-19 and its potential economic impact. It estimates (UNWTO, 2020) that global international tourist arrivals could decline by between 1% and 3% in 2020 compared to an early January 2020 forecast increase of 3% to 4%.
Given the major impact on the hospitality industry of COVID-19, the jet fuel market will also suffer. Fewer flights will result in lower hotel accommodation. In the succeeding sections we describe in more detail the effect of COVID-19 on the hospitality sector and the potential consequences for hotels.
The Covid-19 Pandemic: Global context
The coronavirus began in Wuhan, Hubei Province, China. Residents who lived in Wuhan had some link to a large seafood and live animal market, which suggest that the mode of transmission of coronavirus was from animal to person. The virus has been named “SARS-CoV-2” and the disease it causes has been named “coronavirus disease 2019” (abbreviated “Covid-19”). The first known patient of Coronavirus started experiencing symptoms in Wuhan, China on 1 December 2019. Since then, there have been over 800,000 reported cases around the world.
Impact on the global economy
The COVID-19 pandemic affected the global economy in two ways. One, the spread of the virus encouraged social distancing which led to the shutdown of financial markets, corporate offices, businesses and events. Two, the rate at which the virus was spreading, and the heightened uncertainty about how bad the situation could get, led to flight to safety in consumption and investment among consumers and investors (Ozili and Arun, 2020). There was a general consensus among top economists that the coronavirus pandemic would plunge the world into a global recession. (www.ft.com) Top IMF economists such as Gita Gopinath and Kristalina Georgieva stated that the COVID-19 pandemic would trigger a global recession.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
In this chapter, we would describe how the study was carried out.
Research design
The study employed the quantitative descriptive research design to examine the effect of covid-19 pandemic on hotel patronage.
Research settings
This study was carried out in Estako West local government area.
Sources of Data
The data for this study were generated from two main sources; Primary sources and secondary sources. The primary sources include questionnaire, interviews and observation. The secondary sources include journals, bulletins, textbooks and the internet.
Population of the study
A study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description (Prince Udoyen: 2019). In this study the study population constitute of all the hotel staffs of the six selected hotels (Uyi Grand Hotel, Usowu Ventures Limited Hotel and Suites, Favours Garden Hotel, Pals Guest House, Etsako Guest House Hotel, Presto Hotel) in Estako West local government. An estimated total of 90 staffs constituted the population for this study.
Sample size determination
A study sample is simply a systematic selected part of a population that infers its result on the population. In essence, it is that part of a whole that represents the whole and its members share characteristics in like similitude (Prince Udoyen: 2019). In this study, the researcher used the Taro Yamane Formula to determine the sample size.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
Introduction
The sample size of this study comprised of 73 respondents from six selected hotels in Estako West LGA. A total of 73 copies of the questionnaire was administered while a total of 60 were retrieved in usable form. Hence, this analysis will proceed with the total copies retrieved from the survey.
Evidence from table 4.3 shows that there is a negtaive relationship between patronage by hotel users and revenue for hotel operators. Results above shows that the reduction in hotel patronage causes reduction in hotel revenue.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Summary of Findings
This study was conducted to ascertain the effect of the covid-19 pandemic on hotel patronage in Estako local government area. The study was carried out using the survey method. A total of 60 respondents from 6 selected hotels in Estako were enrolled as participants and surveyed. Results shows hotel operators in Estako West local government experienced extremely low patronage during the covid-19 pandemic. This is expected as the federal government declared a total lock-down in all parts of the country to curb the spread of the virus. During the period where the lock-down were partially lifted, results shows that hotel users had fear and anxiety regarding the contraction and spread of the virus. Hotel operators suffered low patronage during this period and the resultant effects were as follows; reduction of staff, slashing of salaries, decline in the revenue and inaccessibility of essential hotel items. The covid-19 pandemic can be said to have a negative effect on the hotel industry.
Conclusion
The global panic associated with COVID-19 may have enduring consequences on travel. Effective strategies are necessitated to boost travelers’ confidence and to help businesses recover in a timely manner after this public health crisis. The hotel industry’s resilience and sustainability can be solidified by addressing diverse consumption needs and taking steps to transform adversity into opportunity. These efforts align with projected trends in market demand, such as traveler wellness, contactless services and environmental conservation. Hotels’ courses of action related to this pandemic and the dynamic market demand reveal several areas where professional knowledge should be advanced. By reflecting upon evolving traveler expectations and industry recovery programs, academia can contribute to theory development in hotel marketing and management to foster positive changes in industry practices after this pandemic.
Recommendation
Considering the evidence presented in this research report, the following recommendations are suggested:
- The hotels should launch as awareness campaign according to their capacity to win the trust of hotel users. Hotel users wants to be sure of their safety and launching and awareness and prevention campaign will go a long way in re-building confidence in hotel users.
- The hotel operators should ensure that they follow the guideline of NCDC for the detection and prevention of Covid-19. they should ensure that they have the necessary equipment and for this purpose.
- The hotel operators should train their current staffs on people management. This will reassure hotel users of their safety and as such increase their frequency, which which directly translate to increased revenue.
REFERENCES
- https://www.axios.com/hotel-industry-150-billion-coronavirus-relief-34910e41-2402-4260-b4b9-8f5b738db664.html
- According to the American Hotel and Lodging Association. https://www.ahla.com/covid-19s-impact-hotel-industry
- https://www.researchgate.net/publication/340236487_Spillover_of_COVID-19_impact_on_the_Global_Economy
- Financial Times: Global recession already here, say top economists. https://www.ft.com/content/be732afe-6526-11ea-a6cd-df28cc3c6a68
- https://www.reuters.com/article/us-health-coronavirus-stocks-carnage/coronavirus-then-oil-collapse-erase-5-trillion-from-u-s-stocks-idUSKBN20W2TJ
- Bartik, A. W., Bertrand, M., Cullen, Z. B., Glaeser, E. L., Luca, M., & Stanton, C. T. (2020). How are small businesses adjusting to COVID-19?
- Early evidence from a survey (No. w26989). National Bureau of Economic Research.
- Gössling, S., Scott, D., & Hall, C. M. (2020). Pandemics, tourism and global change: A rapid assessment of COVID-19. Journal of Sustainable Tourism, 1–20. https://doi.org/10.1080/ 09669582.2020.1758708
