An evaluation of the impact of COVID-19 on the performance of hotels and lodges in Windhoek, Namibia
Loading...
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of Namibia
Abstract
This study evaluated the impact of the COVID-19 pandemic on the performance of
hotels and lodges in Windhoek, Namibia. The study was promoted by the poor and
uninspiring performance of hotels and lodges following the pronouncement of
successive COVID-19 induced lockdowns. The objectives of the study were to establish
the influence of COVID-19 on occupancy rates, ADR, RevPAR and profitability of
hotels and lodges in Windhoek, Namibia and suggest perceived policy interventions for
sustainable recovery of the hotels and lodges. The study was theoretically guided by the
theory of constraints, resource-based theory and the dynamic capability theory. The
study adopted the positivism philosophy and quantitative approach to enable the
researcher to make use of scientific evidence, including statistics that show how
COVID-19 affected the performance of hotels and lodges in Windhoek, Namibia. A
correlational research design was employed to facilitate hypotheses testing and explain
the cause-and-effect relationships between the COVID-19 pandemic and the
performance of the hotels and lodges. A total of 89 structured questionnaires, designed
using google forms, were electronically distributed through a cross-sectional survey that
targeted managers and accounting officers of the participating hotels. The respondents
were selected using stratified random sampling in order to reflect the population
structure in the sample. Data was analysed quantitatively using SPSS version 19. It was
revealed that rising new COVID-19 cases and deaths as well as restrictions on domestic,
regional and international travel led to cancellation of bookings and low occupancy
rates. COVID-19 negatively impacted on Average Daily Rate (ADR), Revenue Per
Available Room (RevPAR) and profitability of hotels and lodges. The study concluded
that the COVID-19 pandemic negatively impacted the performance of hotels and lodges
in Windhoek, Namibia. It was recommended that hotels and lodges should develop new
business models; advocate for a rescue / aid package for hotels and lodges and target
domestic tourists with limited travel restrictions to enhance occupancy, ADR and
RevPAR. A further study covering other cities and towns in Namibia and incorporating
qualitative methods was suggested
Description
A thesis submitted in partial fulfilment of the requirements for the master of business administration finance
Keywords
COVID-19, ADR, Profitability, RevPAR, Occupancy rate