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Business News of Wednesday, 25 March 2020

Source: Class FM

Coronavirus: Hotels, restaurants, car rentals lay off staff


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Some businesses in the hospitality industry; hotels, restaurants and car rental services, have begun laying off some staff, particularly, contract staff.

The situation is due to the low patronage of their services as a result of COVID-19 pandemic.

Checks by Class Business indicate that some high-profile restaurants and hotels have been hit hard by the pandemic.

The rippling effect on other businesses, particularly the car rentals and others, is also telling.

The businesses in the hospitality industry have been recording very low revenue since the government announced some stringent measures to contain the COVID-19.

The Ghana Hotels Association described the epidemic as having a severe negative impact on their business and urged the government to provide some tax cuts to reduce the probable increase in operational expense.

They have indicated that they will lay off staff if it becomes necessary.

A casual worker with one of the boutique hotels at the Airport Residential Area told Class Business that customers have deserted the restaurant as they are recording about an average of five people per day for breakfast.

“We are recording very low patronage. It’s a difficult time but the hotel is still keeping us. The people who turn up for breakfast at the restaurant have reduced to five since the news of the coronavirus broke out”, he explained.

Seth Yeboah Ocran, President of the Car Rentals Association of Ghana also said they have started laying off staff in the interim to keep up and avoid incurring more losses.

“Hotels are empty, flights are not coming in while other social events like funerals have been postponed to a time that we do not know. The majority of those who have been asked to go home are drivers, car detailers, protocol staff, security and those engaged in other related activities”, he told Accra-based Citi FM.

Now, it is unclear whether the government will provide some relief or support to businesses to help them cope in this difficult time.

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