THE EFFECT OF COVID 19 PANDEMIC ON HOTEL PATRONAGE IN SOME SELECTED HOTELS IN ETSAKO

THE EFFECT OF COVID 19 PANDEMIC ON HOTEL PATRONAGE IN SOME SELECTED HOTELS IN ETSAKO

ABSTRACT

This research was done to determine how the COVID-19 pandemic affected hotel patronage. The purpose of the study was to determine how frequently people used hotels and how that affected hotel revenue. The survey method was used for the study. The study included 60 employees from six different hotels in the Estako West local government. The simple percentage method of response analysis and the chi-square statistical tool were used to analyze the data, and the results showed that the Covid-19 pandemic had a negative impact on hotels in Estako West LGA. Because of the inability to pay debts, this has led to a reduction in the workforce. Hotels in Estako were also affected by the pandemic’s aftereffects because guests haven’t started using the accommodations again. Additional statistical findings

demonstrates that there is a poor correlation between hotel guests’ level of patronage and their spending at the hotels. To reassure hotel guests of their safety, the study advises hotel operators to launch a Covid-19 awareness and prevention campaign. Additionally, the Covid-19 guidelines must always be followed.

CONTENTS TABLE

ABSTRACT

FIRST CHAPTER

History of the study

A description of the research problem

The study’s purpose is to

Querying the research

research theories

Study significance and justification

The study’s scope

Study’s limitations

Conceptual terms explained

Two chapters

A REVIEW OF THE BOOKS

three chapters

3.1 Subject Area

3.2.1 Research Plan

3.3 Sampling and population techniques

Instrument of Research

Measurement of Research Variables, Section 3.5

3.6 Data Collection Techniques

3.7 Test

of Theories

CHAPITER IV

PUBLICATION, ANALYSIS, AND INTERPRETATION OF DATA

Discussion of the Results

CHAPITER 5

CONCLUSION, RECOMMENDATION, AND SUMMARY

5.1 Findings Synthesis

5.2 The Verdict

Recommendation 5.3

Appendixes

References

CHAPITER 1

INTRODUCTION

1.1 THE STUDY’S BACKGROUND

In 2020, Nigeria experienced a health pandemic along with the majority of other nations. Pandemics in the economy are common in Nigeria, but she had no experience with pandemics in the health system. The 2016 recession was one of the economic pandemics that Nigeria experienced. The country’s monetary authority also protected the local currency from being forcibly devalued against the dollar and implemented a managed float foreign exchange system, which was successful from 2016 to 2019. Following Nigeria’s 2016 recession, it was nearly universally accepted that unforeseen and The main factor causing recessions in Nigeria was the long-term decline in oil prices. Within a decade, Nigeria experienced two economic crises. The global financial crisis caused the economic crisis in 2009, while the unexpected drop in the price of oil on the global market caused the economic crisis in 2016. The global financial crisis of 2007–2008, banks’ subpar loan underwriting procedures, subpar risk management procedures, and subpar corporate governance of banks all contributed to the 2009 recession (Sanusi, 2010). A significant contributor to the 2009 economic crisis was banks. The unanticipated drop in oil prices that resulted in a significant decrease in oil revenue and ultimately the 2016 economic crisis

Nigeria’s foreign reserve was impacted (Adeniran and Sidiq, 2018). Due to these severe balance of payments deficits and an already heavy debt load, Nigeria experienced its second recession in ten years.

The majority of the economic agents who should have helped to revive the economy were prevented from doing so out of fear of contracting the Covid-19 disease during the 2020 economic crisis, which set it apart from previous recessions or crises in Nigeria. Other economic agents abstained from doing so when the government imposed and enforced its social distancing policy and movement lockdown in Abuja, Lagos, and Ogun states on March 30.

According to Ferguson et al. (2020), pandemics are not new and have happened at various times. portions of human history (Ferguson et al., 2020). Although there have been numerous outbreaks and human tragedies, the frequency of pandemics has significantly increased starting in the year 2000 and continuing to the present. This is caused in part by an increase in the emergence of viral diseases in animals (Madhav et al., 2017). Many researchers, including Garrett (2007), Keogh-Brown et al. (2008), and most recently Madhav et al. (2017) and Fan et al. (2018), contend that a significant global pandemic was unavoidable given the rise in the frequency of pandemics. The COVID-19 pandemic, according to Ferguson et al. (2020) of the Imperial College London COVID-19 Response Team, is the most serious incident since the 1918 Spanish Influenza pandemic. Barro (2020) claims that despite the comparisons, nonpharmaceutical interventions used during The 1918 Spanish Influenza Pandemic did not reduce the overall death toll. This occurred as a result of the interventions not being kept up for a sufficient amount of time. According to his estimates, quarantine and isolation lasted an average of 18 days, compared to only 36 days for school closures and bans on public gatherings, including hotels (0.05 years). Barro et al. (2020) calculate that, assuming all other factors remained the same, the COVID-19 pandemic would result in roughly 150 million deaths worldwide (compared to the world’s population of 7.5 billion in 2020), based on the 2.1 percent death rate experienced during the Spanish Influenza pandemic in 1918–1920. According to Barro et al. (2020), the average death rate of 2.1 percent results in a 6 percent decline in GDP and an 8 percent increase in poverty.

decline in personal consumption. The impact can be felt in a variety of ways, according to Jonas (2013), including: I avoidance due to social distancing measures (individuals may decide not to consume, use, or pay for certain goods and services, such as staying at hotels); ii) small direct costs (such as hospitalization and medical expenses); iii) larger indirect costs (loss of labor, production); and iv) offsetting and cascading effects (disruption of services, travel and others). This study aims to investigate how the COVID-19 pandemic has affected hotel patronage in Estako West, Edo State.

1.2 Description of the research issue

The Covid-19 pandemic outbreak is best characterized as unanticipated and unprepared. The sudden epidemic abruptly stopped all economic activity around the world, spreading like a hurricane. The outbreak brought anxiety and fear to people and communities everywhere. The Pandemic, which is thought to have started in Wuhan, China, put the majority of communities and countries on lockdown. Except for essential items, movement was limited. Businesses, including banks, ministries, and multinational corporations, were completely shut down as the virus’s spread was observed to be accelerating. The hotel sector is one of those that was most severely impacted by the pandemic. Private individuals and organizations frequently use the hotel facility for professional meetings and social events. However, hotels across the nation saw a sharp decline in business as a result of the COVID-19 pandemic. This is due to the fact that during the lockdown, private individuals and organizations hid in the comfort of their homes.

and would prefer to communicate via the internet and video conferencing. The hotel industry experienced poor business in this circumstance. In order to specifically examine the effects of the COVID-19 pandemic on hotels and how this tragic situation affected guests’ spending, this study is being conducted. For this, a specific analysis of the hotels in Estako West, Edo State, will be conducted.

1.3 Purpose of the investigation

Examining the impact of COVID-19 on hotel patronage in Estako West of the Edo state is the main goal of this study. The research specifically aims to:

Find out how frequently people visit hotels.

Find out how much money the hotel owners in Estako West Local Government make.

Analyze the loss suffered by hotel owners overall.

caused by the COVID-19 pandemic

1.4.1 Research issues

How frequently were hotels used during the COVID-19 pandemic?

What connection exists between Estako West hotels’ revenue and the frequency of their guests?

What various losses did hotel owners suffer as a result of the COVID-19 pandemic?

1.5 Research suppositions

In hotels in Estako West LGA, there is no negative correlation between customer traffic and revenue.

Ha! In hotels in Estako West LGA, there is a negative correlation between guests and revenue.

1.6 The study’s importance and justification

The goal of this study was to investigate the dynamics of the shifting economic environment. It draws attention to the unpredictable risks that frequently confront business owners. This information is pertinent for future business owners.

The study applies to both individuals and businesses in the hospitality sector. This is because it provides them with data based on the conundrum obscuring the industry. This information will help them plan ahead for the industry’s inherent future unpredictability.

However, this study adds to the body of knowledge because it documents pertinent concepts helpful to the COVID-19 pandemic.

1.7 Study’s purview

This investigation focuses on the COVID-9 pandemic’s events and derives its conclusions from the vicinity of hotels in Nigeria’s Edo state’s Estako West Local Government.

1.8 Study’s limitations

The results of this study might not apply to every hotel situation in Nigeria. This is due to the study’s restrictive scope.

Local government area of Estako West. By conducting more comprehensive studies that include data from other local governments and states, this research gap can be filled.

1.9 Conceptual terms explained

Patronage:

Hotel: