Hospitality industry is on its knees due to the prolonged coronavirus containment measures with may force players to close shop. Since the first lockdown in March 2020, many employed in the sector were laid off as businesses moved to cut costs in order to stay afloat.

While the government has eased some restrictions on businesses, the hospitality industry is still struggling to operate.

The prolonged suspension of social gatherings and events limits sources of revenues. For example, gyms and bars remained closed almost 11 months after the first lockdown in March 2020.

" We have had the last several weeks to engage the Ministry of Health on a discussion about health facilities reopening without success. We have now reached over 365 days since gyms closed and the sports and fitness sector risks complete collapse, with several businesses permanently closed or considering closure," said lead representatives for the Coalition of Fitness Facilities in Rwanda in an open letter dated April 2 to several government agencies including the Ministry of Health and Sports.

The lobby argued that they have presented a concept note on how gyms can safely open based on international precedent and called for transparency on how risk is assessed.

We feel we are being unduly punished (without no economic relief or assistance) without transparency or communication," they said.

While hotels are allowed to operate, mandatory coronavirus tests, social distancing rules and restrictions on the number of guests that they can host has made it difficult to do business.

Now, entrepreneurs in the hospitality sector are also concerned that their properties are at the risk of being auctioned due to bank loans.

Many are facing tough choices to lay off workers to reduce the operating costs of keeping their business open without customers.

Rwanda Today has learnt that long periods of inactivity have forced some businesses, especially mid-range hotels to close, while other owners sold off their properties to pay off banks loans.

“Business has come to a complete halt, meetings are out of the picture so our food and beverage is on a stand still, no sauna no gyms and the numbers from accommodation are too low to sustain operations” said Sarah Kirenga, proprietor of Land Mark Suites Hotel.

She said for a 50-room facility, she gets around two or three guests in a week for one night each, noting that occupancy in the industry does not exceed 10 percent.

"We are at a point when we need more government support in terms of grants to cater for operational costs if we are to remain standing. ” said Ms Kirenga.

Despite the government setting up a fund to cushion businesses including those in the hospitality sector, stringent restrictions have made the funds inaccessible to many local businesses.

Recently, the government eased some restrictions for instance banks were forced to adjust their charges to at least 5 percent interest rate on outstanding loans.

While this offers temporary relief, Ms Kirenga said it is far from being enough to keep hotels afloat.

Faced with dwindling revenues, now more local hotels are facing the risk of closing due to prolonged restrictions.

The situation in the market echoes a time in 2015 when up to 100 hotels in Rwanda were up for auction, until the government mounted a couple of interventions between banks and embattled hotels, however some still ended up not escaping the auctioneers hummer.

Some hotel and restaurant owners have faulted the government for being heavy-handed and business unfriendly when it comes to punishing businesses that have gone against some Covid-19 protocols in place, where some hotels found selling alcohol have been closed for months.

However, big hotels appear to be weathering the crisis better.

For instance, Lake Kivu Serena hotel closed from April to June last year, and upon opening on the 2nd of July, had to innovate around its products and come up with promotional rates, to attract family customers in Kigali who wanted a getaway after months in lockdown, which enabled them to stay afloat.

“The strategy when we opened was to come up with special offers which would attract families, for instance we were only charging adults and exempted children.