An exploration of government financial support towards the sustainability of accommodation facilities during COVID-19 in Namibia
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Date
2022
Authors
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Journal ISSN
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Publisher
University of Namibia
Abstract
This study was conducted to explore government financial support towards
the sustainability of accommodation facilities during Covid-19 in Namibia.
The objectives of the study were to ascertain measures that the government
has put in place to improve cash flows of accommodation facilities, identify
challenges towards obtaining suitable financial support for accommodation
facilities during the pandemic from the government and to evaluate the factors
government takes into account in deciding to support the accommodation
sector. The study used an exploratory research design utilising a qualitative
research approach for data collection and analysis. Data was gathered from
30 participants (26 B & B and Lodges and 4 officials from the Ministry of
Environment and Tourism). Data was collected using a semi-structured
interview guide and the data was analysed using thematic analysis. The study
found that there was a drastic decrease in both room occupancy and annual
turnover for the year ended 2020, compared to the same period in 2019, hence
the need for government financial support to sustain the hospitality industry.
The results revealed that the available financial support and stimulus
packages are not effective for the tourism sector. The available funding
programs include government guaranteed loans, facilitated through the
Development Bank of Namibia (DBN) and other commercial banks, and are
meant to boost production. However, the B & B and Lodges rely on local and
international visitors who may require accommodation, hence these loans
cannot do much to boost production but rather leave the owners in more debt.
Therefore, this study recommends for the government to provide financial
suppo1i suitable for the tourism industry. Also, currently grants are
recommended to sustain the industry. The government is also encouraged to
promote domestic tourism. It is recommended for the B & B and lodge owners
to diversify their businesses in this current environment
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration Finance
Keywords
Government financial support, Namibia, COVID-19, Accommodation facilities, University of Namibia