Challenges of Localizing Ethiopian Hotels during Global Crisis of Covid-19: Local Customrs’ Perception on Accessibility and Affordability
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Date
2021-02
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Addis Ababa University
Abstract
The tourism industry is extensive and growing; among those hospitality sector is the one and
leading the world economy. Despite the fact that the hotel sector playsa significant role in
economic growth as well as development, it also faces challenges and shortage of customers
during crisis periods. To minimize the crisis the hoteliers must have alternative strategies like
preparing services which afforded by local customers and increase them. In the context of
Ethiopia, studies are not conducted to examine the nexus between local customers’ affordability
and accessibility towards three, four and five star-rated hotels and hotel industry development.
Therefore, this research was aimed to assess the perception of local customers’ on accessibility
and affordability towards four and five star-rated hotels during Covid-19 related crisis in Addis
Ababa by using descriptive survey research design. Primary quantitative and qualitative data
was collected through questionnaires; interview and observation and non-probability
(Purposive) and convenience sampling method were applied. Qualitative data were analyzed
through descriptive statistics, whereas qualitative data were analyzed via thematic analysis.
Finding indicates that three, four and five star- rated hotels business in Addis Ababa are one
sided; focused on international tourists; hoteliers lost international tourists due to Covid-19
crisis; local customers are not hoteliers’ target; local customers’ accessibility is highly
influenced by perception, price and protocol unaffordability; most of three, four and five starrated hotels’ services are not affordable to local customers. However, unaffordable services of
three, four and five star-rated hotel; local customers low level of income and perception; lack of
government support to hoteliers; absence of hotels’ and government regulation were the critical
barriers to lack of local customers’ accessibility and affordability of hotel services. Therefore,
using local customers as alternative market for star-rated hotels in Addis Ababa are still at the
infant stage. Five, four and three star-rated hotels tried to invite few local customers temporarily
during covid-19 crisis but not as sustainable alternative. Finally, recommendations were
provided for hotel managers and owners, government, and other concerned bodies to enhance
local customers’ perception, accessibility and affordability of four and five star rated hotels.
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Keywords
accessibility, affordability, challenges, hotel sector, local customer, perception