The world economy is in a free-fall following the outbreak of the Covid-19 that has shut down the world and ground life to a halt.
In Uganda,the Covid-19 has forced the Shilling in downward spiral against the dollar, further forcing big businesses against the wall.
The hospitality sector has been one of the most affected by the Covid-19 pandemic.
Five-star hotels are recording record low occupancy rates after guests were forced to cancel bookings after the government ordered a near total lock-down.
Property mogul Sudhir Ruparelia, who controls a chain of five -star hotels in Kampala,this week announced the closure of Speke Resort Munyonyo while Kabira Country Club will be partially opened.
With the closure of Speke Resort Munyonyo,over 1000 workers were sent packing and an additional 1000 are also expected to follow suit anytime soon.
This has put livelihoods at stake, lending more credence to those calling for a bail out for Ruparelia.
With that background, economic experts have urged the government to consider stimulus packages for the hotel industry- to shield the economy from potential collapse.
Experts argue that bailing out major hoteliers like Ruparelia is very critical as to the hotel industry employs 667,000 of Uganda’s working population.
A bail out would enable big hoteliers like Ruparelia to offset losses caused by cancelled bookings,thus allowing the industry to maintain a workforce.
The United States Senate on Thursday approved a similar bailout package to starve the world’s biggest economy from collapsing.
“Uganda can borrow the example of Kenya where President Kenyatta has unveiled a stimulus package for the economy,”said an expert who declined being named.
On Thursday, President Uhuru Kenyatta announced that corporate tax will be reduced from 30 per cent to 25 per cent and turnover tax from 3 per cent-1 per cent.
Kenyatta also announced that government ministries would pay out Shs13 billion owed out to local companies.