Crisis drives Angolan hotels to bankruptcy

28 June 2017

The economic and financial crisis in Angola has particularly affected the hotel industry, with hotels experiencing a fall in revenues of around 80%, driving many of them to bankruptcy, said on Tuesday in Luanda the president of the Association of Hotels and Resorts of Angola (AHRA).

Armindo César, speaking at a meeting on “Taxes applied to the hotel business”, carried out in partnership with the General Tax Administration, said that the crisis has seriously affected hotel units in the country since 2014.

“There is currently a sharp fall in occupancy rates for hotels, with many units operating below 20% of their capacity,” said the president of AHRA, adding that there are many establishments whose occupancy rate does not exceed 5.0%.

Cited by Angolan news agency Angop, Armindo César stressed that the situation worsened with the small number of tourists, resulting, in particular, “from the bureaucracy in granting entry visas into the country to foreigners.”

Given the seriousness of the situation, he said, the hotel units have lost capacity to honour the commitments made with the banking system, and there are currently bad credit situations, with huge complications for the sector.

Just as they cannot honor commitments with financiers and suppliers, hotels also say they are struggling to pay their tax obligations on time.

This situation has a greater impact on small units in the interior of the country, in suburban and rural areas, César said. (macauhub)