Impact of Covid-19 Pandemic To Meetings, Incentives, Conferences and Exhibitions (Mice) Tourism in Rwanda
Impact of Covid-19 Pandemic To Meetings, Incentives, Conferences and Exhibitions (Mice) Tourism in Rwanda
Impact of Covid-19 Pandemic To Meetings, Incentives, Conferences and Exhibitions (Mice) Tourism in Rwanda
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Vol. 7, Iss. 3, pp 395 – 409. August 10, 2020. www.strategicjournals.com, ©Strategic Journals
IMPACT OF COVID-19 PANDEMIC TO MEETINGS, INCENTIVES, CONFERENCES AND EXHIBITIONS (MICE)
TOURISM IN RWANDA
Rwigema, P. C.
Ph.D, Member of Parliament, East Africa Legislative Assembly [EALA], Rwanda
ABSTRACT
Since the beginning of 2020 COVID-19 engulfed the world halting the daily activities. In a matter of weeks,
the pandemic had threatened health and lives of millions of people worldwide. By the last quarter of the
month of March 2020 several countries in the world including Rwanda had imposed travel restrictions and
lockdown measures to combat COVID-19 pandemic. This led to unprecedented levels of mass commercial
flight cancellations and travel restrictions, forcing millions to alter their travel plans. Both international and
domestic tourists cancelled bookings in Rwanda and outbound tourism activities were also banned. Airlines
had cancelled flights, while hotels were almost completely vacant. Consequently, tour operators were facing
huge economic losses and employment cuts in Rwanda. According to the Minister for Trade and Industry,
Soraya by July 21st 2020 Rwanda’s MICE (Meetings, Incentives, Conferences and Exhibitions) industry had
been hit by a $48 million (over Rwf45 billion) loss as a result of the global Covid-19 crisis. The purpose of this
paper was to discuss the impact of the COVID-19 pandemic on the Meetings, Incentives, Conferences and
Exhibitions (MICE) tourism in Rwanda. The study covered a period of 7 months (December, 2019- July, 2020).
The study adopted a descriptive survey design. 36 general managers of hotels offering MICE tourism for a
period of three years from 2017-2020 in Kigali Province were targeted. A sample of 34 respondents was
determined from this population using purposive sampling technique. Both primary and secondary data was
collected. Primary data was collected using the questionnaire while for secondary data the study reviewed
journals, historical records, newspaper articles, World Health Organization statistics, government data, and
website materials on COVID-19 incidences in tourism. Data analysis was done with the aid of Statistical
Package for Social Sciences (SPSS) Version 21. The study findings revealed that 58.8% of the respondents
strongly agreed that COVID-19 created conditions and disruptions forcing socio-behavioural changes on
societies. In addition, 76.5% of the respondents strongly agreed that MICE consumers in Rwanda had been
seriously curtailed by the pandemic. Moreover, 64.7% of the respondents agreed that their hotel expectations
of the right to unfettered mobility across national borders has been severely challenged by government
responses to COVID-19, 35.3%. Furthermore, a combination of (82.4%) of the respondents agreed that
closure of attractions and tourism facilities had negatively affected the MICE tourism. Lastly, 61.8% agreed
that virtual events mainly served as a good substitute for recession-prone exhibitors and attendees during
COVID-19 while 32.8% strongly agreed. A half of the respondents representing 50% also strongly agreed that
travel restrictions on rights to visit friends and family had negatively impacted the MICE tourism. From the
review of respondents, the study noted that MICE consumers had not only been affected in Rwanda alone but
globally. In general, there was no doubt that the hospitality and tourism sector was operating at a loss. The
study concluded that in Rwanda, COVID-19 had adversely impacted MICE tourism.
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Based on the study findings the study recommended to the Government of Rwanda to continue imposing
measures to combat the pandemic. Since the end of the pandemic was not predetermined there was need to
continuously address both on an on-going basis as the pandemic and its effects evolved over time and place
and as a retrospect once the new hospitality and tourism in Rwanda to make the sector sustainable during
and after the pandemic. Future studies can be carried in other districts of the country. Also, a study on MICE
tourism preparedness in responding to the crisis and recovery of their enterprises can be carried out.
CITATION: Rwigema, P. C. (2020). Impact of Covid-19 pandemic to Meetings, Incentives, Conferences and
Exhibitions (MICE) tourism in Rwanda. The Strategic Journal of Business & Change Management, 7(3), 395 –
409.
Page: - 396 - The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
the local economy of a destination (Yang & Gu, According to (Tatiana Rokou 2020), the Centre for
2012). Exhibition Industry Research (CEIR) reports that
growth of the exhibition industry plunged during
According to Chinazzi et al., (2020) the
the first quarter of 2020 as 72.6% of events
consequences of the pandemic has seen the
originally scheduled for the second half of March
shutdown of hospitality and tourism operations of
were cancelled. The remaining 27.4% of events
many countries have been virtually and
were postponed and some of those events may
international travel (and, in some countries,
eventually be cancelled as well. Due to many
domestic travel as well) has all but ceased. In
cancellations, the CEIR Total Index, a measure of
addition, Cao, et al., (2020) notes that the right to
exhibition industry performance, registered a
travel and to enjoy the services of hospitality and
record 15.1% decline from a year ago compared to
tourism operators has been constrained in a way
a modest 0.3% year-over-year gain of inflation-
unprecedented except in times of the world wars of
adjusted Gross Domestic Product (GDP).
the twentieth century.
According to the report by United Nations World
Baum, and Nguyen (2020) indicates that
Tourism Organization, (2020) European Union
governments all over the world have applied the
tourism industry is estimated to be losing around €1
public health justification within the Siracusa
billion in revenue per month as a result of the
Principles (1984) to take action through the use of
outbreak of COVID-19. In Particular popular tourist
emergency powers like the COVID-19. As Sheller
destinations, hotels have been deserted and
(2020) articulates so clearly, the global health
restaurants, bars, tourist attractions, theme parks
pandemic has impacted the way people live,
and museums closed. Trade fairs, congresses and
including entitlement to personal mobility through
cultural events have been cancelled or postponed.
access to travel both locally and further afield and
According to (Josh Burrows, 2020), sporting events,
to be tourists, something increasingly taken for
such as the Euro 2020 football championship and
granted as a right in many societies. In constraining
the Olympic Games, have been postponed until
physical mobilities in response to this pandemic,
2021. Ski resorts have ended the winter season
governments have enacted laws and regulations
early. According to (Gene Sloan 2020), major cruise
that would have been unthinkable in most
companies have halted operations; cruise ships
countries prior to the current emergency. At a
stranded at the sea, as more and more ports have
social level, the notion of “social distancing” has
temporarily refused them entry. Various countries
entered the common lexicon (Long, 2020), a notion
have reintroduced border controls or banned
that is the very antithesis of expectations of the
certain travellers from entering their territory,
experience of MICE tourism. Therefore, World
leaving them struggling to return home (IATA,
Travel and Tourism Council (WTTC) (2020)
2020).
estimates more than 50 million jobs in the travel
and tourism sector could be at risk globally. Since early February 2020, more than fifty airline
companies suspended or limited flights to China
According to (Umar, R., 2020), global Smith Travel
and several countries including Italy, Australia,
Research (STR), United States hotel industry has
Russia, and the USA, and also imposed government-
had an unprecedented impact due to COVID-19.
issued travel restrictions (Chinazzi et al., 2020).
The travel restrictions and social distancing policies
Nearly about 75% of travellers of Luxury Travel
have had a dramatic effect on the industry.
agency suspended their tickets for Southeast Asian
According to (GlobalData, 2020) hotel occupancy in
countries which were to be departed by February
the US has dropped to 53% and revenue per
and March (Ekstein, 2020). Many holiday
available room has declined by 32.5% for the week
destinations in Southeast Asia regions like Beijing,
ending March 14).
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Shanghai, Xi’an, Chengdu, in China along with Senegal in 2019. In these countries, economic
various destinations in Malaysia and Singapore had growth is expected to drop on average to a value of
been booked by the global tourists, which were -3.3% in 2020 whereas in Seychelles, Cape Verde,
cancelled and rebooked for other destinations like Mauritius and the Gambia, the impact shall be
Southern Africa, Maldives, and Australia (Briefing & much felt at least -7% in 2020 (World Bank, 2020).
Associates, 2020).
Kenya’s tourism industry registered improved
In Italy, almost 90% percent of hotel and travel performance in 2019 mainly attributed to growth in
agency bookings for March 2020 cancelled in Rome aviation, investor confidence and withdrawal of
and up to 80% in Sicily (Federazione Italiana del travel advisories. Tourism earnings increased by
Turismo, 2020). As numerous coronavirus cases in 3.9% from KES 157.4bn in 2018 to KES 163.6bn in
other European countries are traced back to Italy, 2019 while the number of international arrivals
travel warnings for eleven more Italian towns that increased by 1.2% from 2m arrivals in 2018 to 2.1m
have been on lockdown have been issued. The arrivals in 2019 (AfDB, 2020). As such the sector
impact is also hurting areas of Italy barely touched contributed to about 8.8% of Kenya’s GDP in the
by the virus. Italy’s tourism federation announced same period and over 1.1m jobs to the Kenyan
that damage to the tourism sector is estimated at economy. Due to the COVID-19 pandemic, leisure
200 million for the first quarter of the year and conference tourism, both external and
(Mangiapane, 2020). domestic face possible collapse owing to travel
restrictions which has completely stopped
According to Lee-Peng et al., (2020) Malaysia had a
international tourist arrivals, while social distancing
total of approximately 170,084 hotel room bookings
measures have affected domestic tourism and
during the period 11th January 2020, but until 16th
conferencing. Given the tourism sector’s strong
March 2020 had been cancelled, which caused a
linkages with the wider economy, reduced tourist
loss of revenue amounting to 68,190,364 Malaysian
arrivals impede consumption of various goods and
ringgits. The loss was directly attributable to the
services and the incomes of workers in related
outbreak of COVID-19. In addition, the author
sectors
predicts that the local hotel sector had been
projected to lose 3.3billion Malaysian ringgits in The government of In Rwanda has identified the
revenue by June 2020, as a result of Movement tourism sector as one of the mainstays of the
Control Order (MCO) which has been extended to economy (RDB, 2017). Report by Rwanda Hoteliers'
12 May 2020. Association, (2020) indicates that there is an
average of 7,000 hospitality establishments
The prospects of Africa’s tourism industry are very
(including hotels, restaurants, bars and
strong as compared to other regions in the world. It
accommodations facilities) across the country
was projected to increase between 3 % to 5% in
which employs over 84,000 workers. In particular
2020. However, with the ongoing restrictions,
MICE Tourism and the hospitality sector currently
hotels are laying off workers and travel agencies are
account for about 142,000 jobs. However, due to
closing in many African countries, a negative growth
COVID-19 which was reported in March 2020 this
is likely to be expected. The overall impact of
year, Hotels in Rwanda have reported losses
Covid19 on the economies of top tourist countries
amounting to over Rwf13 billion since February due
is much higher than that all African economies
to coronavirus outbreak (Rwanda Hoteliers'
(UNCTAD, 2020). In 2019 tourism industry
Association, 2020).
contributed to more than 10 percent of GDP of the
following countries: Seychelles, Cape Verde, The latest update from Rwanda Convention Bureau
Mauritius, Gambia, Tunisia, Madagascar, Lesotho, estimated a loss worth around USD 25 Million from
Rwanda, Botswana, Egypt, Tanzania, Comoros and international conferences and events cancelled or
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postponed due to COVID-19 and this may increase According to Frank Gisha Mugisha, the Director
as more events are likely to be cancelled or General of the Rwanda Chamber of Tourism at the
postponed to future dates. In Rwanda the Private Sector Federation (PSF), the COVID-19
government recently announced the postponement outbreak has happened at a time of the year when
of Commonwealth Heads of Government Meeting the tourism industry recorded its highest earnings
(CHOGM) which was expected to have a huge since the tourism sector does not really get more
impact in terms of forex and spillovers to the clients in the other quarters than in the first one.
economy this year. The impact is also evident in Just to mention the tourism and hospitality sector,
external trade as both exports and imports have which is also saddled with combined debts of
declined since travel restrictions were put in place, Rwf87.7 billion, is seeking a financial stimulus of
thus commodity prices for Rwanda’s minerals and Rwf7.1 billion to save the battered businesses.
agricultural products plummeted.
The pandemic disrupted Rwandan economy just like
Rwanda Automobile Club (RAC) postponed the it did to other economies of the world. According
2020 Mountain Gorilla Rally until further notice as to the Minister for Trade and Industry, Soraya
the country and the world in general continue to Hakuziyaremye by July 21st Rwanda’s MICE
grapple with the COVID-19 pandemic. The event (Meetings, Incentives, Conferences and Exhibitions)
which was scheduled for May 2020 saw the industry has been hit by a $48 million (over Rwf45
sponsors lose a lot of capital they had already billion) loss as a result of the global Covid-19 crisis.
invested towards the event. To mitigate the impact of the pandemic on the
economy, the Government of Rwanda has rolled
Evaluation of the impact of COVID-19 pandemic to
out a number of temporary policies, including
MICE tourism in Rwanda is therefore integral to
setting fixed prices on food items to stabilize food
clearly understand and determine the extent of the
prices, monetary and fiscal measures such as tax
impact of the pandemic and be able to develop
relief, establishment of a recovery fund to support
relevant recommendations that can guide the
hard hit sectors of trade, manufacturing, tourism
creation of suitable strategies contributing to the
and hospitality.
recovery process and transformation of the sector.
The government has also established a
Statement of the Problem
comprehensive Economic recovery plan May 2020-
According to UNWTO (2020) estimates COVID-19
December, 2021 (MINECOFIN, 2020). MICE sector’s
pandemic has caused a 22% fall in international
best chances for survival in the short and medium
tourist arrivals during the first quarter of 2020
term lie in the domestic tourism. The Government
globally. According to (UNWTO, 2020), the United
of Rwanda has rolled out the Economic Recovery
Nations specialized agency notes that the crisis
Fund to support businesses in the sectors hit
could lead to an annual decline of between 60%
hardest by the pandemic so they can survive,
and 80% when compared with 2019 figures. This
resume work/production and safeguard
places millions of livelihoods at risk and threatens
employment. The targeted sectors are those highly
to roll back progress made in advancing the
impacted by the restrictions put in place to prevent
Sustainable Development Goals (SDGs).
the spread of the virus, and exposed to consumer
For example, in Rwanda the MICE tourism has been discretionary spending, and those with global
hardly hit. According (Bertrand Byishimo, 2020), the supply chains that are being disrupted.
hospitality businesses in Rwanda has lost about
In tourism sector, Pay As You Earn Tax (PAYE) was
Rwf13.6 billion, tour operators Rwf20 billion, travel
waived for a period of three months from April to
agencies Rwf152 million and conference and events
June 2020 for employees of companies operating in
Rwf1 billion by March 2020.
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the tourism and hotel sector who earn up to previous global catastrophe such as the Spanish
150,000 Rwandan francs net salary. Influenza pandemic at the end of the second
decade of 20th century. This is seen in Mexico
At the same time, some countries are taking
where in March 2009, unknown influenza appeared
tentative steps towards re-opening their economies
and had negative impact to the tourism sector
for social and business activity. Tellingly, hospitality
(Neumann et al, 2009). Subsequently, the United
businesses are frequently in the category which can
States CDC (Centres for Disease Control and
expect to re-open last. How the hospitality industry
Prevention) identified the virus as a new strain of
will survive and revive in a post COVID-19 world
Influenza A H1N1 (Jennings et al., 2009) now known
remains an unknown and it will be important to
as 2009 H1N1.
revisit this theme in the future. Hence, the need for
the study on assessing the impact of COVID-19 on According to March and Woodside (2012) demand
the MICE tourism in Rwanda. for MICE capacity is uncertain and highly seasonal
and convention and exhibition facilities, like hotel
LITERATURE REVIEW rooms, are perishable. The author argues that the
Global consequences of the COVID-19 Pandemic demand of the MICE industry is usually affected by
on MICE Tourism seasons, holidays, and weather conditions. Further,
According to Huang, et al., (2020) the mortality rate fluctuations in the economy and competition from
among the admitted patients to hospitals of the rivalling destinations always cause uncertain
new coronavirus is estimated at 15%. The impact of markets to a MICE destination. Unfortunately, the
the outbreak on tourism may be direct or indirect COVID-19 pandemic has brought the MICE industry
since it depends on behaviours of the virus and to a standstill causing the most severe disruption of
each country’s response to mitigate its spread the global economy since World War II (World
(Wired, 2020). This implies further that the Bank, 2020).
proportions and persistence of the economic Tourism industry is also facing similar challenges.
damage due to the novel coronavirus will depend According to the United Nations World Tourism
on the government measures to handle the Organization (UNWTO) latest estimate, there has an
situation (Grey Ellis, 2020). On the shady side, it expected fall of between 20-30% that could
could turn into a global economic crisis and the translate into a decline in international tourism
long-lasting effect of globalization. On the other receipts (exports) of between US$300-450 billion,
hand, it could be the time when policy practitioners almost one third of the US$ 1.5 trillion generated in
manage a collective crisis response (Jamal & Budke, 2019. Taking into consideration the past market
2020). trends, it shows that between five- and seven-
Wang and Ritchie (2010) argued that the hotel years’ worth of growth would be lost because of
industry particularly demands effective crisis Coronavirus. The unprecedented introduction of
management, as the sector is one of the most travel restrictions across the world, the
sensitive to the crises like terrorist attacks, SARS international tourist arrivals will fall by 20% to 30%
epidemic, bird flu, and global financial crisis of the in 2020 when compared with 2019 figures.
years 2008–2009 investigated by the mentioned Millions of jobs in the industry are at risk of being
authors or the COVID-19 pandemic considered in lost as around 80% of all tourism businesses are
this paper. small-and-medium-sized enterprises (SMEs). The
Basing on the study by Lee et al., (2012) caution Hotel and Hospitality Industry would lose 20% of its
should be taken globally as the COVID-19 outbreak turnover and this percentage can be as high as 40%
stems from international apprehension of a to 60% for countries like Cambodia, Vietnam and
Thailand (where the sector represents around 20%
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of the employment). The top tourism destinations global airline revenue by $29.3 billion in 2020,
in the World are France with around 89 million arising from a contraction in global air demand.
tourist arrivals per annum, Spain with around 83 While this is the first such contraction since the
million; USA (80 million), China (63 millions), Italy global financial crisis of 2008 to 2009, it needs to be
(62 millions), Turkey (46 millions), Mexico (41 recognized that virtually 95% of this projected loss
millions), Germany (39 millions), Thailand (38 will be for Asia/Pacific carriers.
millions), and United Kingdom (36 millions).
The COVID-19 pandemic has hit almost all African
Tourism together with travel support one in 10 jobs
countries and appears poised to worsen
(319 million) in the world and generating 10.4% of
dramatically. The disruption of the world economy
world GDP. The lock down in these countries shows
through global value chains, the abrupt falls in
how deep the impact of Covid19 has been on
commodity prices and fiscal revenues and the
tourism industry in the world.
enforcement of travel and social restrictions in
World Travel and Tourism Council have warned that many African countries are the main causes of the
the COVID-19 pandemic could cut 50 million jobs negative growth. Exports and imports of African
worldwide in the travel and tourism industry, and countries are projected to drop by at least 35%
Asia is expected to be the worst affected. When the from the level reached in 2019. Thus, the loss in
outbreak shall be over, it could take up to ten value is estimated at around 270 billion US dollars.
months for the industry to recover (World To fight against the spread of the pandemic and
Economic Forum, 2020). This impact would depend medical treatment will lead to an increase of public
on how long the epidemic lasts and could still be spending in Africa estimated to at least 130 billion.
exacerbated by recent restrictive measures, such as
Tourism, an important sector for economies of
those taken by the U.S. administration on travel to
many countries in Africa, will be heavily affected by
Europe (World Travels and Tourism Council, 2020).
COVID-19 with the introduction of travel
According to chief executive of WTTC, the
restrictions, closing of borders and social distancing.
coronavirus is a big threat to the tourism industry
IATA estimates the economic contribution of the air
that could shrink the travel sector by up to 25% in
transport industry in Africa at US$ 55.8 billion
2020 (BBC, 2020b).
dollars, supporting 6.2 million jobs and contributing
According to World Economic Forum, (2020) China 2.6% of GDP. These restrictions affect international
the tourism industry currently accounts for 10% of airlines including African giants Ethiopian Airlines,
global GDP. However, China being the first country Egyptair, Kenya Airways, South African Airways, etc.
that has been hit by the coronavirus tourism is The initial effects will result to partial
impacted negatively (Ayittei et al., 2020). In the unemployment of airlines staff and equipment.
Mainland China about 70,000 theatres closed down, However, in normal times, airlines transport around
the majority of airlines cancelled or cancelling flight 35% of world trade, and each job in air transport
to and from China, impacting tourism (CNN, 2020). supports 24 others in the travel and tourism value
chain, which creates around 70 million jobs (IATA,
The news that the virus had spread to Italy and to
2020).
other countries in Europe has caused considerable
anxiety for tourists, potential tourists and the wider Egypt has also experienced a notable decline in
tourism industry. Research from the Global tourists over since February 2020, after the
Business Travel Association (2020) shows outbreak of the coronavirus. After the
widespread business meeting cancellations and announcement of the first infection of coronavirus
postponements taking place worldwide. The in Egypt, and about 200 cases as of the mid-March,
International Air Transport Association (IATA, 2020) many hotel reservations have been cancelled and
has predicted that the coronavirus shall reduce
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tourists can barely visit tourism sites (Al-Monitor, Police, the Health Sector and local authorities’
2020). efforts and innovations in community awareness,
misinformation as they encouraged citizens to
Overview of the COVID-19 Pandemic in Rwanda
respect safety measures in the entire country.
Rwanda prior COVID-19
Rwanda has had its share of high-level alert since At the Heart of the pandemic
2018 with the Ebola Virus Disease (EVD) at its door- Close to 2000 members from across sectors are
step on the Democratic Republic of Congo side. For working in different areas of interventions including
a country with limited resources facing a potential principally Epidemiology that deals with
epidemic at that time, Rwanda quickly realized it surveillance, contact tracing, lab testing and case
could only rely on an effective coordinated and management including psychological support. Other
multi-sectoral approach. important supporting areas of intervention are risk
When faced with COVID-19, a crisis committee of communication and community engagement and
key Ministries involved in the response was planning logistics.
nominated, and chaired by the Prime Minister. The Similar structures were established in all 30 Districts
committee put in place a COVID-19 Joint Task Force under the leadership of Mayors. Rapid Response
(JTF) on 9th March 2020 to coordinate the Teams (RRTs) were activated at District levels
implementation of a preparedness and response reporting on daily activities to the central level. In
plan just in time for the first case. The Government addition, 2000 different professionals worked to
of Rwanda has demonstrated high-level leadership support the COVID-19 Joint Task Force.
and taken swift action to tackle the risks associated
with the ongoing pandemic and bend the curve on A multi-sectoral approach was used at the creation
COVID-19. The effort to contain the potential of the task force, hence the fact that it is composed
of members from different sectors: Public, local
spread of COVID-19 is led by the Office of the Prime
Minister under the National Epidemic Preparedness government, security organs, private sector, civil
& Response Committee (NEPRCC), in collaboration society and development partners.
with the Ministry of Health, Ministry of Local Active surveillance, contact tracing and
Government and Ministry of Foreign Affairs. containment measures for isolating suspected cases
and treating confirmed cases continue to be
Rwanda amid COVID-19
On 14 March 2020, Rwanda reported the country’s implemented. The Joint Task Force proceeds by
first case of COVID-19. Three months into the case finding, quarantine, decontamination and
pandemic, Rwanda counts over one thousand isolation for treatment.
cases. Close to half of those cases have recovered The Government of Rwanda set up several isolation
and none has shown signs of relapse. Five have sites and 2 treatment centres during the
passed but all remaining active cases are in preparedness phase. Currently 10 Treatment
treatment centres in stable condition. centres have been set up to offer treatment to
The declaration of the outbreak was followed by a confirmed COVID19 cases. 2 Treatment centres are
in the Capital City, 2 are in the Eastern Province
series of preventive measures such as the
mandatory quarantine for all travellers coming into while 6 are in Western Provinces.
the country, compulsory wearing of face masks, The new normal
hand washing and practice of physical distancing. In line with the progressive lift of the lockdown,
Several campaigns were organized including risk since 4 May 2020, Public and private transport
communication and awareness campaigns, resumed. In the entire country, authorities
#GumaMuRugo – a call to stay home and save lives- repeated reminders to observe the following
which made a buzz thanks to the Rwanda National
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measures: Wash hands; Wear a face-mask; Practice whereby both primary and secondary data was
physical distancing; Be home by 9 pm as curfew is collected. Primary data was collected using the
still applicable; Resume work with staff not questionnaire while for secondary data the study
exceeding 50%; Provide masks for all employees reviewed journals, historical records, newspaper
while at work. articles, World Health Organization statistics,
governmental data, and website materials on
Markets and shops remain open provided people
COVID-19 incidences in tourism. Data processing
continue respect preventive measures. Transactions
and analysis was done with the aid of Statistical
are mainly cashless, and Wash stations and hand
Package for Social Sciences (SPSS) Version 21.
sanitizers are compulsory in all public spaces.
Tables and figures were used to present the
On 4th July, the Ministry of infrastructure analyzed data. Correlation analysis and regression
announced that airports will reopen for all flights on analysis was used to show the relationship and the
1 August 2020. Passengers will be required to show significance of the relationship between the
proof of COVID-19 Polymerase Chain Reaction test variables. Correlation and linear regression were
(PCR) taken within 72 hours of arrival. Passengers used to analyze the data with F-test being applied
entering Rwanda will also be required to take a to the test hypothesis at 5% level of significance.
second mandatory test within 24hours and other Content analysis was used for the qualitative data.
prevention measures will be put in place. The data was presented using tables, graphs and
charts.
METHODOLOGY
In this quantitative research, the study adopted a RESULTS
descriptive survey design where the main focus was The study investigated the impact of COVID-19 on
on a sample of 34 hotels operating and offering the consumption of tourism industry and its MICE
MICE tourism for a period of three years from 2017- sub-sector in Rwanda. Respondents were given the
2020 in Kigali province (See Appendix 1). Thirty-four questionnaire and requested to give their
general managers were purposively selected to Reponses. Their findings were recorded as follows:
provide the data. Detailed data was collected
Table 1: Statements on impact of COVID-19 on MICE tourism in Rwanda
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Initially, 58.8% of the respondents strongly agreed Furthermore, a combination of 82.4% of the
that COVID-19 has created conditions that impact respondents agreed that closure of attractions and
on the lives forcing socio-behavioural changes on tourism facilities has negatively affected the MICE
societies, 32.4% just agreed while 8.8% were tourism while 17.6% were neutral with the
neutral with the statement. This is evident when statement. IMF reviewed downwards the country’s
the Ministry of Local Governments announced the economic outlook, with real GDP now expected to
lockdown On June 25, of Kamabuye, Zuba, shrink to 5.1 per cent in 2020, down from 10.1 per
Nyenyeri, and Rugano villages in Kicukiro district, cent registered in 2019.
and Kadobogo and Gisenga villages in Nyarugenge
International Monetary Fund (IMF) approved
district. The lockdown lasted for at least 15
$109.4 million to be drawn under the Rapid Credit
days.
Facility (RCF) as Rwanda’s economic managers are
In addition, 76.5% of the respondents strongly under pressure to craft new measures to restore
agreed that MICE consumers in Rwanda have been productivity needed to support growth. The
seriously curtailed by the pandemic, 23.5% just lockdown to contain COVID-19 sent shockwaves to
agreed while none were neutral with the Rwanda since the country largely depends on the
statement. National borders in Rwanda have, service sector which contributed 49 per cent of GDP
effectively, been closed to most travellers including in the third quarter of 2019 according to the
leisure, business and MICE tourists. With East Africa National Institute of Statistics of Rwanda (NISR)
community countries closed their borders (IMF, 2020).
completely to non-nationals and non-residents. This
On closure of national borders, has curtailed
has seen the Heads of State Summit holding a
movement reducing and totally eliminating MICE
meeting on 12th May 2020 chaired by H.E President
consumers majority (82.4%) of the respondents
Paul Kagame that adopted a harmonized system for
strongly agreed, 29.4% agreed while 8.8 were
certification and sharing of COVID19 results with a
neutral with the statement. Confinement to place
lot of emphasis cross-border challenges including
of residence and penalties for non-compliance has
those related to clearance processes at borders
reduced the MICE tourism in our hotel with (79.4%)
during the pandemic.
as majority indicated while a simple minority of
Moreover, 64.7% of the respondents agreed that 21.6% just agreed. After joining the
their hotel expectations of the right to unfettered Commonwealth, over a decade ago, Rwanda was
mobility across national borders has been severely set to host the highly anticipated Commonwealth
challenged by government responses to COVID-19, Heads of Government Meeting 2020 (CHOGM) in
35.3% just strongly agreed while none were neutral the capital city of Kigali, last June, but the event was
with the statement. This is however going to be a postponed due to the pandemic.
matter of the past as the Ministry of Infrastructure
Lastly, majority (61.8%) agreed that virtual events
(Mininfra) on, July 4th announced that Rwanda will
mainly serve as a good substitute for recession-
reopen airport operations for scheduled
prone exhibitors and attendees during COVID-19
commercial flights on August 1. “Rwanda’s airports
while 32.8% strongly agreed. A half of the
will reopen for scheduled commercial flight
respondents representing 50% strongly agreed that
operations on August 1, 2020. To ensure the safety
restrictions on rights to visit friends and family has
and health of passengers, crews and staff, airport
negatively impacted the MICE tourism, 32.4% just
operations will adhere to guidelines developed by
agreed while 17.6% were neutral with the
the Ministry of Health and recommendations of the
statement. A major consequence of the COVID-19
ICAO Council on Aviation Recovery Task Force. This
crisis in the area of travel and tourism was the
in turn will affect the MICE tourism positively.
impact on the area of consumer protection.
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Consumer rights can be considered as a human of products and services in the MICE tourism in
right that is the joint responsibility of government, Rwanda.
businesses and other relevant social organizations,
Interview responses on MICE tourism in Rwanda
underpinned by the United Nations’ Guidelines for
Interviews were conducted among the respondents
Consumer Protection that were agreed in 1985 and
from different hotels under the study. Some of their
updated in 1999 and 2015. Every year on April 7,
views and responses were:
majority of Rwandese visits genocide memorial site
in the capital, Kigali, where they lay a wreath for the Manager A: When the City of Kigali announced a
more than a million genocide victims against the suspension of entertainment events and exhibitions,
Tutsi. But this year, 26 years after the genocide we were forced to send all my employees on unpaid
against the Tutsi, they could not visit due the leave for six months. This is because we had
lockdown because of corona virus pandemic. invested a lot in the hotel and we had dets to clear
with the bank.
Way forward on MICE tourism
According to Rwanda Convention Bureau Rwanda Manager B: We were to host Africa in Colours event
was scheduled to host 147 events in 2020, so far at that was slated for March 26-28. Under the
least 20 conferences, initially scheduled for March measures put by the government we have lost not
and April were postponed, denying the country only finances but also postponing makes it costlier
approximately $8 million in revenues compared to and even harder to get the targeted audience. In
projected revenue target of $88 million in 2020. A general, we had already spent up to $60,000 for the
number of events have been postponed or event before it was cancelled.
cancelled following a government directive as Manager C: We organised and high-level
precautionary measure. They include the Great conferences like the 4th Gender Summit in March
Lakes Investment and Trade Conference 2020, 2019, which most African leaders attended and
which was scheduled for March 17-20 and the hard-pressed in closing the gender gap in Africa.
Cybertech Africa slated for March 11-13. This is a Our hotel was to benefit from the biggest share
clear proof of how the MICE industry has been where among the 2,000 delegates the head of
strongly affected by the disruptive effects of COVID- states spent in our hotel”. Cancellation of the event
19. meant a total loss to the MICE subsector in Rwanda.
Rwanda as a country has invested heavily on Manager D: Our hotel had partnered with ICLEI
Information Communication and Technology. Africa in organising the 2020 edition of the Climate
Virtual and hybrid events emerge as two additional Change Africa Summit which was scheduled to take
options to consider in the face of disruption. place from 13 to 17 September 2020 in Kigali,
Therefore, number of meetings and conferences Rwanda. Postponing the event due to the health
have been redesigned as virtual events and this crisis linked to Covid-19 has made our financial
format is probably the best alternative in these projections to be affected.
challenging times. In the aftermath of COVID-19
Manager E: We were very happy knowing that
budgets will become tighter, incorporating
Rwanda was set to host the highly anticipated
technologies that allow for video conferencing and
Commonwealth Heads of Government Meeting
virtual meetings are increasingly seen by most
2020 (CHOGM) in the capital city of Kigali, last June,
organizers as a cost-effective option when holding
but the event was postponed due to the
MICE events. Virtual events mainly serve as a good
pandemic. From the government estimation the
substitute for recession-prone exhibitors and
prestigious conference would have generated over
attendees. Use of social media has become so
$700 million. The country’s forecast had put
commonly used in marketing for almost every type
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delegates’ expenditure alone at around $80 million, 2020 – December 2021. In particular there were
as the event was expected to attract about 10,000 different priorities but the ones related to MICE
delegates, including 52 heads of states. We invested tourism were priority 4 on supporting businesses
a lot to ensure we get the share of delegates and protecting jobs and priority 5 on ensuring a
spending in our hotel. Postponement of the event Coordinated Multi-sectoral response of
has given us more time to prepare and come next Government to quick start and boost economic
year when the event will take place, we will be activity.
ready to get the share.
As of today, it is too early to assess whether these
Manager F: Our hotel was disappointed to get a measures will be effective, a number of
message from the Bishop of Gikongoro district that observations and recommendations can be drawn.
there will be no annual pilgrimage on the Solemnity
Firstly, the Government of Rwanda should continue
of Assumption, celebrated on August 15, 2020 at
strengthening measures to combat the pandemic.
Kibeho. The faithful, unable to go to their own
Since the end of the pandemic is not predetermined
worship places, were invited to follow the message
and its effects evolve over time and place and as a
of this Solemnity through different media. This will
retrospect once the new hospitality and tourism in
affect our hotel because most people who had
Rwanda in order to make the sector sustainable
booked from outside were supposed to spend in our
during and after the pandemic, there is a need to
hotel; indeed, our hotel was going to have 100%
continuously address both on an on-going basis as
occupancy since March.
the pandemic.
CONCLUSIONS AND RECOMMENDATIONS Secondly, these interventions need to be regularly
From the review of respondents, the study noted monitored in order to enable sound empowering
that MICE consumers had not only been affected in strategies for MICE tourism operators in particular
Rwanda alone but globally in general. There was no hotels employees who are negatively impacted by
doubt that the hospitality and tourism experiences the pandemic.
are running at a loss. The study concluded that in
Thirdly, MICE tourism operators need to show
Rwanda, COVID-19 had adversely impacted MICE
strong creative, innovation and resilience skills as to
tourism. Furthermore, travel restrictions in Rwanda
put in place innovative solutions to rebuild a
had led to the cancellation of all commercial air
sustainable tourism industry.
travels. It was clear that both domestic and
international tourists cancelled their bookings due Finally, it is paramount for policy makers in the
to the pandemic. For that reason, tourism related tourism sector to use the COVID-19 outbreak to
businesses were losing their revenue, and improve crisis management strategies and
employees were losing their jobs. In this situation, strengthen international and domestic tourism co-
special stimulus package from the government was ordination mechanisms rethinking on a more
necessary for the travel and tourism industry to sustainable and resilient tourism system and to
survive the current situation and revive after the respond united to any future shocks.
pandemic. The study also concluded that hospitality Area of further studies
and tourism would undoubtedly re-emerge from The study focussed on Kigali province MICE tourism.
the effects of the pandemic over an extended Future studies can be carried in other districts of
timeframe and at varying speeds in Rwanda. the country. Also, a study on MICE tourism
In conclusion the Government of Rwanda preparedness in responding to the crisis and
prioritized the recovery of the MICE tourism in recovery of their enterprises can be carried out.
Economic Recovery Plan covering the period May
Page: 406 The Strategic Journal of Business & Change Management. ISSN 2312-9492 (Online) 2414-8970 (Print). www.strategicjournals.com
Acknowledgements acknowledges the anonymous key informants in the
The author acknowledges the contribution of Hon. MICE Industry in Rwanda for providing information
Ambassador Fatuma Ndangiza for her comments requested.
on the draft of the manuscript. The author also
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