Struggling Hotels in Cameroon due to COVID-19

Since the beginning of the COVID-19 crisis, the world has experienced a significant drop in demand, particularly within the hospitality and tourism sectors. Much like its African neighbors, hotels in Cameroon have felt the pain.

For most of the hotels in the city of Yaoundé, Cameroon, the primary clients are foreigners. Due to government actions to secure and protect the population against the COVID-19 virus, restrictions such as the closing of borders and airports have reduced foreigner business dramatically. Foreigners constitute about 95% of the clients for hotels, with Cameroon nationals consisting of approximately 5%.

To make matters worse, some activities such as conferences, organizational meetings, and restaurants within hotels have limited operations due to various restrictions. Hotels have been forced to send more than 50% of their employees on unemployment without any payment. A study performed by Genesis Analytics predicts about 5% of the tourism industry will receive their salaries at the end of May. Several hotels report a drop in revenue by over 90%.

The situation for the remaining personnel looks bleak. Employers are reducing salaries and simultaneously increasing the number of working hours. While some hotels prefer to remain closed to reduce expenses, many hotels are operating at a loss by reducing their rate to attract clients that have been forced to remain in the country.

As we look to the future, more than 50% of business travelers originate from the CEMAC region and are expected to return to travel habits soon. Long-haul travelers, which constitute more than 30% of foreign business travel to Cameroon, will likely see suppressed travel for the next twelve months.