3.1 million jobs at risk in travel, tourism sectors as virus bites

Approximately 2.3 million employees have already been sent on unpaid leave.

In Summary

• Some hotel employees are on 50% pay as most businesses are considering redundancies from June onwards.

• This is a result of measures put in place to mitigate the spread of the virus, among them closure of bars and the 7 pm–5 am daily curfew which commenced on March 27.

KQ plane departs from JKIA.
KQ plane departs from JKIA.
Image: FILE

At least 3.1 million people are at risk of losing their jobs as Covid-19 continues to ravage the country's economy, a government report has revealed.

According to the report released on Thursday, this is only an estimate for the travel and tourism sectors alone.

The job losses have affected hotel employees, pubs and restaurants, tour operators, airlines, and travel agents.

The report was out of a consultative meeting between the government and private sector on Covid-19 Containment Measures which was chaired by Interior CS Fred Matiang'i.

Approximately 2.3 million employees in the hotel and tourism sectors have already been sent on unpaid leave.

Some hotel employees are on 50 per cent pay as most businesses are considering redundancies from June.

This is as a result of measures put in place to mitigate the spread of the virus, among them closure of bars and the 7pm–5am daily curfew which commenced on March 27.

The report further indicated big losses in health-related SMEs - smaller hospitals, clinics, and diagnostic centres since patients are not seeking treatment due to restricted movement and fear of safety at health facilities.

At least 40 per cent loss in revenue will be recorded in these facilities due to canceled elective surgery, reduced medical follow-ups, and unpaid debt.

Another sector that has seen a major economic blow is the construction and real estate.

The report shows that at least 450,000 people have lost jobs, including casual labourers.

Reportedly, only 25 per cent of construction sites are still operating during this  pandemic.

Other businesses impacted include real estate agents, valuers, property management, and security.

In the education sector, the report revealed that at least 53 per cent of educational institutions reported layoffs due to financial strain.

However, some jobs have since been created through ICT following the adoption of online classes.

The report cites EdTech as a huge area of potential growth.

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