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Business News of Friday, 3 April 2020

Source: www.ghanaweb.com

Coronavirus: Restaurants experiencing 60% average drop in patronage – Ofori-Atta

Finance Minister, Ken Ofori-Atta Finance Minister, Ken Ofori-Atta

Restaurants in Ghana are said to be experiencing an average drop in patronage of 60 percent following the outbreak of the novel Coronavirus in Ghana.

This is according to the Finance Minister, Ken Ofori-Atta who says even before the impact of the two-week partial lockdown directive by President Nana Addo Dankwa Akufo-Addo, restaurants in the country, were already experiencing a significant drop in patronage.

“Even before the impact of the current lockdown, restaurants were already experiencing an average drop in patronage of 60 percent,” Ken Ofori-Atta said this in a briefing in Parliament on Monday, March 30.

The Finance Minister adds hotel occupancy rates are also down from 70 percent to under 30 percent due to the pandemic in Ghana.

“Hotel occupancy rates are down from 70% to under 30% and staff are being sent home.” he stressed.

Due to low patronage of their services as a result of the outbreak, some businesses in the hospitality industry; hotels, restaurants and car rental services, have began laying off some staff, particularly, contract staff.

Ken Ofori-Atta also stressed transportation services, have been among the worst hit, due to social distancing, closure of schools and the ban on mass gatherings by government.

Meanwhile, an impact assessment of the coronavirus outbreak conducted by the Ghana Tourism Authority (GTA) has revealed the hospitality industry is likely to lose US$130 million in the formal sector.

The informal sector of the hospitality industry, according to the sector minister, is likely to also lose US$41 million.

This makes a total loss of US$171 million for both sectors.