Assessment of the Effects of Political Unrest on Hotels and Tourism Establishments in West Shewa Zone: Empirical Evidences from Ambo District
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Date
2023-01
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Addis Ababa University
Abstract
The purpose of this research is to identify how hospitality and tourism industry has been affected by the political instability in Ambo district, West Shewa Zone and how the industry stakeholders had reacted to mitigate its negative consequences. The data were collected via survey questionnaire, semi structured interview, document review, and personal observation. The significance of this study is providing information about the effects of political unrest, or turmoil on the development of tourism and hospitality industry in Ambo district, West Shewa zone, and will have many fold significances to the entire sector and all stakeholders in the tourism industry and government sectors. Thus, to achieve the objectives, descriptive research design and mixed research approach were used. Both primary and secondary sources of information were used for this study. The primary data were gathered from155 sample sizes, those of 147 through survey questionnaire, and 8 through key informant interviews and personal observation while secondary data were collected through a document review data collection instrument. The result of this study revealed that, Hotels and other accommodation establishments reduced their work force at the time of political unrest (X = 3.7823). Tourism service providers in Ambo district were troubling to operate their ordinary business activity during last three years (2019- 2021). The annual total revenue of tourism establishment has declined compared to the year before 2019. room occupancy rate, number of guests visiting tourism business, annual total revenue, number of employees, average number of stays of guests, service quality and service type providing by hoteliers are decline during political unrest. Hoteliers lost loyal customers, cost of operation and salary of employee’s increases. Tourism investors discouraged from investing new tourism-related investments and expanding their businesses, and delays completing the project on schedule. Properties of hotels and tourism establishments was damaged, including employees those of injured (14), arrested (9), and beaten employees. Hoteliers and other tourism establishments disabled from participating and interacting with other actors, attending meetings, and reduced their motivation to compete with each other. They perceive that political unrest discourages and disorganizes them from coordinating together, and feel tourism establishments need to be strengthened. Hoteliers and other tourism establishments had reduced their workforce, delaying their cost of operation, changed their orientation to the local community (customers), closed their business for a given period of time to reopen it after conflict over, and also lost their plan to expand their business to other areas.
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Keywords
Political instability, Tourism development, Tourism infrastructure