FINANCIAL EFFECTS OF POST COVID 19 PANDEMIC ON SMALL MEDIUM
ENTERPRISES (SMEs) BUSINESS PERFORMANCE: A CASE OF LIVINGSTONE
TOURIST BUSINESSES
BY
KANGWA KAFWITA CHANDA
20019335
A research project submitted to the University of Zambia in partial fulfillment of the
requirement for the award of a degree in Bachelor of Science in Accounting and
Finance.
The University of Zambia
2023
DECLARATION
I Kangwa Kafwita Chanda,a student at the University of Zambia pursuing a Bachelor of
Science in Accounting and Finance, do hereby declare that this research project represents
my own independent research,and that it has not been presented to any other university by
any student at degree level other than the University of Zambia
Signature : ………………………………………..
Date : …………………………………………….
i
APPROVAL
This research by Kangwa Kafwita Chanda has been approved for the partial fulfillment of the
requirements for the award of a Bachelor of Science in Accounting and Finance by the
University of Zambia.
Examiner ……………………… Signature………………… Date…………………………..
Supervisor …………………….. Signature………………… Date…………………………..
ii
DEDICATION
I dedicate this research study to my parents Frank Chanda and Margaret Mutale Chanda who
have been my greatest source of encouragement as well as moral and financial support.Their
prayers,words of wisdom,sacrifices,love,care and support have given me the strength to
soldier on even in times when I felt I would give up.I further dedicate to my siblings Mirriam
Chanda,Chanda Kafwita,Mutale Chanda,Changa Chanda and Kabwe Chanda who have been
with me throughout my academic journey,always cheering me on and offering moral support
during my research and academic journey.A special dedication of love to my son,my sweet
baby boy Jabez Mutale Chanda,though young,has been another greatest source of strength
and reason for me to soldier on and finish strong,I thank God for you my baby boy.I love you
all so much,this win is not just for me,but for the Chanda family for God has made it
possible.
iii
ACKNOWLEDGEMENT
I thank God,an ever loving and faithful Father for making a way for me even when it seemed
impossible to be able to live and fulfil my dream of being a University of Zambia graduate.I
also thank my parents and family members who have offered their financial,moral,emotional
and mental support all through my academic journey.
I would like to acknowledge and appreciate my Supervisor Mr Fumbani Mphande for his
professional and wise counsel both during research lectures and guidance as a supervisor.I
also acknowledge Dr. Saili for his wise contributions during lectures.May God reward you
both for your sacrifices,consistency,dedication and commitment in ensuring that we are well
prepared to undertake our research work with honesty and integrity.
I also acknowledge and thank my colleague Mr Christon Mukonde who has offered his
unwavering support and guidance throughout my academic journey having graduated earlier
with the same degree in Accounting and Finance,as well as my coursemates especially
Mordecai Chibuye and Malilwe Chikumi for their love,care,support and commitment during
our entire academic years.They have both been very influential in making my academic
journey at the University very enjoyable yet hardworking.Finally,I thank the participants who
were part of the research for their valuable contributions and support.
iv
LIST OF ACRONYMS AND ABBREVIATIONS
COVID-19
Coronavirus Disease
CDF
Constituency Development Fund
DNPW
Department of National Parks and Wildlife
IPA
Interpretive Phenomenological Analysis
PCR
Polymerase Chain Reaction
SME
Small and Medium Enterprises
SPSS
Statistical Package for the Social Sciences
WHO
World Health Organization
ZTA
Zambia Tourism Agency
v
TABLE OF CONTENTS
DECLARATION....................................................................................................................... i
APPROVAL .............................................................................................................................ii
DEDICATION........................................................................................................................ iii
ACKNOWLEDGEMENT ...................................................................................................... iv
LIST OF ACRONYMS AND ABBREVIATIONS ..... Ошибка! Закладка не определена.
ABSTRACT..............................................................................................................................1
CHAPTER ONE: INTRODUCTION .................................................................................... 2
1.0 Overview .......................................................................................................................... 2
1.1 Background of the study .................................................................................................. 3
1.2 Statement of the problem ................................................................................................. 3
1.3 Purpose of the study ......................................................................................................... 3
1.4 Specific Objectives ........................................................................................................... 3
1.5 Research Questions .......................................................................................................... 4
1.6 Significance of the study .................................................................................................. 4
1.7 Scope of the study ............................................................................................................ 4
1.8 Theoretical Framework .................................................................................................... 5
1.9 Definition of key terms .................................................................................................... 5
1.11 Chapter Summary........................................................................................................... 5
CHAPTER TWO: LITERATURE REVIEW ....................................................................... 6
2.0 Overview .......................................................................................................................... 6
2.1 Livingstone: A Tourist Capital ......................................................................................... 6
2.2 The COVID-19 Pandemic ................................................................................................ 7
2.3 A Global perspective on effects of the COVID-19 pandemic on the tourism industry ... 9
2.4 An African perspective on effects of COVID-19 pandemic on the tourism industry .... 10
2.5 Local perspective on effects of COVID-19 pandemic on the tourism industry ............. 12
CHAPTER THREE: RESEARCH METHODOLOGY .................................................... 13
vi
3.0 Overview ........................................................................................................................ 13
3.1 Research Design ............................................................................................................. 13
3.2 Study Population ............................................................................................................ 13
3.3 Population Sample.......................................................................................................... 13
3.4 Sampling Techniques ..................................................................................................... 14
3.5 Data Collection Instruments ........................................................................................... 14
3.6 Questionnaires ................................................................................................................ 14
3.7 Interview Guide .............................................................................................................. 14
3.8 Validity and Reliability .................................................................................................. 14
3.8.1 Validity........................................................................................................................14
3.8.2 Reliability....................................................................................................................15
3.9 Data Analysis ................................................................................................................. 15
3.11 Ethical Consideration ................................................................................................... 15
CHAPTER FOUR : PRESENTATION OF RESEARCH FINDINGS ............................ 16
4.0 Overview ........................................................................................................................ 16
4.1 Demographic Characteristics of Participants ................................................................. 16
4.1.1 Gender Distribution .................................................................................................... 17
4.1.2 Age Distribution..........................................................................................................17
4.1.3 Education level Distribution........................................................................................18
4.1.4 Work Experience in Tourism Distribution..................................................................19
4.1.2 Position and Business Category Distribution..............................................................19
4.2 Objective 1: To identify challenges faced by SMEs in the post COVID-19
pandemic..................................................................................................................................20
4.2.1 Foreign Currency Frequency Distribution..................................................................20
4.2.2 Has COVID-19 affected the business?.......................................................................22
4.2.3 Has there been any opportunities for growth in the business brought about by the
COVID-19 pandemic...............................................................................................................22
4.3 Objective 2: To determine the business strategies that are useful to SMEs in the post
COVID-19 pandemic era.........................................................................................................23
vii
4.3.1 Were you as a business able to invest in domestic tourism of local visitors during and
after the pandemic....................................................................................................................23
4.3.2 As a business have you been able to adapt and cope with the changes brought about
by the pandemic?......................................................................................................................24
4.3.3 Have you been able to employ new strategies as a business that have helped keep the
business going?........................................................................................................................25
4.3.4 Do you think domestic tourism should be invested in more than international
tourism......................................................................................................................................26
4.3.5 Do you think there is hope of recovery for tourism in Zambia post COVID19..............................................................................................................................................26
CHAPTER FIVE: DISCUSSION OF THE RESEARCH FINDINGS.............................27
5.0 Overview........................................................................................................................27
5.1 Objective 1:To identify challenges faced by SMEs in the post COVID-19
pandemic..................................................................................................................................28
5.2 Objective 2: To determine the business strategies that are useful to SMEs in the post
COVID-19 pandemic era..........................................................................................................28
CHAPTER SIX: CONCLUSION AND RECOMMENDATIONS....................................29
6.0 Overview........................................................................................................................29
6.1 Conclusion......................................................................................................................29
6.1.1 Objective 1: To identify challenges faced by SMEs in the post COVID-19
pandemic..................................................................................................................................29
6.1.2 Objective 2: To determine the business strategies that are useful to SMEs in the post
COVID-19 pandemic era.........................................................................................................29
6.2 Recommendations..........................................................................................................30
6.3 New Knowledge.............................................................................................................30
6.4Limitations......................................................................................................................30
6.5 Suggestions for future research......................................................................................30
REFERENCES ................................................................................................................... 33
...APPENDICES ..................................................................................................................... 34
viii
Appendix 1: Work Plan ........................................................................................................ 34
Appendix 2: Budget ............................................................................................................. 34
Appendix 3: Interview Guide 1 ............................................................................................ 35
Appendix 4: Interview Guide 2 ............................................................................................ 36
Appendix 5: Interview Guide 3 ............................................................................................ 37
Appendix 6: Tourism Business Employees (Upper, Middle and Lower Management)
Participants Questionnaire....................................................................................................41
ix
ABSTRACT
The title of the research study is financial effects of post COVID-19 pandemic on small and
medium enterprises’ business performance:a case of Livingstone tourist businesses.The study
specifically focused on tour operator and lodge owner businesses who are key players in the
tourism industry in Livingstone.A mixed methods approach was adopted using an exploratory
research design which facilitated the collection of qualitative and quantitative data and
analysis of the findings.Data was collected through closed and open ended questionnaires as
well as interviews and structured observation in order to have a deep insight of the objectives
of the study.A total of fifty one participants were purposively sampled and targeted to be
reliable to the study.The objectives of the study were to identify the challenges faced by
SMEs in the COVID-19 pandemic as well as to determine the business strategies that were
useful to the SMEs in the post COVID-19 pandemic era.The findings revealed that the
pandemic negatively affected the tourism industry,with many businesses in Livingstone
suffering huge losses and reduction in revenue due to reduced numbers of tourist arrivals
which is the major market for most SMEs.The disruptive effects of the pandemic led to
businesses scaling down on operations and workers while most of them closed down because
they failed to adapt and cope with the changes brought about by the pandemic.The findings
further revealed that some businesses,through the struggle,managed to employ survival
strategies that helped them to stay in business such as reducing rates to attract the only
available local market.Based on the findings the researcher recommended that SMEs should
be encouraged to diversify and explore other businesses to reduce dependence on a single
market,to enhance efficiency of their operations by embracing digital technology as well as to
prioritize effective financial planning and management to ensure sustainable business
operations.
Keywords: financial effects,COVID-19 pandemic,SMEs,businesses,challenges,strategies
1
CHAPTER ONE
INTRODUCTION
1.0 Overview
This chapter presents the introduction on the Financial effects of post COVID-19 pandemic
on SMEs Business Performance of tourist businesses: a case in Livingstone. The chapter also
gives a brief background of the COVID-19 pandemic and the effects it has had on the tourism
sector, presents the statement of the problem, states the purpose of the study, outlines the
research objectives and research questions as well as the significance and scope of the study
with a theoretical framework.
1.1 Background of the study
COVID-19 is a communicable disease that has constituted significant threats at local,
regional and global levels leading to a pandemic. (Major Epidemic and Pandemic
Diseases,2021)
SMEs constitute the majority of businesses in Zambia and they play an important role in
employment and economic growth.(Rapid Response Article,2020)
The coming of the pandemic in 2019 saw an effect on the survival of SME business
operations in Zambia and worldwide particularly in the tourism industry.Livingstone town is
a tourist destination that relies heavily on the tourism sector,encompassing different
businesses and activities that sustain the livelihoods of the majority of the citizens in the town
and also contributes to the growth of the country’s economy. In containing and managing the
pandemic measures had to be taken such as closure of boarders, suspension of flights, and
lock downs of towns both locally and internationally which led to a decrease in tourism
activities. This decrease in tourism activities led to the closure of some SME businesses such
as tour operators, lodges, restaurants resulting in job losses, while other SMEs have seen a
decrease in revenue and have since struggled to maintain business operations to cater for
expenses such as salaries and wages, rentals and sales as the entire tourism value chain has
been disrupted.
To improve the performance of SMEs businesses in the tourism sector, it is essential to adopt
the right policies and strategies such as investing in new technologies, innovations and
2
marketing strategies to attract tourists and increase the tourism value chain in the event that
future crises arise.Having an understanding of the financial effects of the pandemic on the
SMEs businesses performance is important in identifying the challenges faced and strategies
used for recovery and growth.
1.2 Statement of the problem
2020 saw many businesses across all industries struggle and, in some cases, shut down due to
the coronavirus pandemic declared in March by the World Health Organization. Perhaps the
most affected industry was, and still is the tourism sector, with a reported 100% of global
destinations restricting travel in different senses (UNWTO,2020)
SMEs in the tourism industry offering services like lodging, safari tours largely rely on
international tourists. The tourism industry being one of the key financial sectors of the
Zambian economy that has been greatly affected by the COVID-19 pandemic has seen the
closure of businesses within the tourist capital Livingstone resulting in loss of revenue and
employment, financial challenges in operations for most SMEs while post COVID-19 other
existing businesses have excelled and new businesses have emerged.
In view of the above statement, a research of this nature was carried out to explore the effects
that COVID-19 has had on the performance of Livingstone businesses in tourism that have
led to the closure of some and the survival of other businesses in the sector post COVID-19
pandemic.
1.3 Purpose of the study
The purpose of the study was to explore the financial effects that COVID-19 has had on the
performance of tourist businesses in Livingstone,specifically tour operators and lodge owners
and how they have continued to operate post COVID-19 pandemic.
1.4 Specific Objectives
1. To identify the challenges faced by SMEs in the post COVID-19 pandemic
2. To determine the business strategies that are useful to SMEs in the post COVID-19
pandemic era
1.5 Research Questions
1. What are the challenges that SME businesses in tourism have faced in the COVID-19 era?
3
2. What are the strategies that SME businesses in the tourism industry have adopted to
continue surviving and thriving post COVID-19?
1.6 Significance of the study
The findings of this study will be expected to benefit SMEs businesses that play an important
role in economic growth and job creation thereby improving the tourism sector and Zambian
economy through their contribution. The study will also add to the body of knowledge on the
effects that COVID-19 has had on performance of tourist businesses which other researchers
can find helpful in their study of similar concepts.
1.7 Scope of the study
The study focused on exploring how tourism businesses in Livingstone, a tourist capital
operate in determining the financial effects that businesses have been faced with post
COVID-19 pandemic.The study covered the period from when the pandemic started in late
2019 to the present post pandemic recovery phase. A selected number of tour operator
businesses and lodges within Livingstone were used as a sample. The sample consisted of
upper management staff, middle management and lower management staff.
1.8 Theoretical Framework
Weiss’ 1990’s Theory of Change
The study was guided by Weiss’ theory of change which the author described it as a theory of
how and why an initiative works(Stein and Valters,2022).The theory describes the
involvement of thinking through processes thereafter detailing how a program or intervention
is supposed to work, why it will work, the beneficiaries and the required conditions for its
success. The general concept as stated by World Bank Group(2018) is that the theory was
initially understood as a way to describe “the pathways of change that led to the long term
goal and the connections between activities, outputs and outcomes that occur at each step
along the way” in a given project or intervention program. This theory was significant to the
study in the aim of finding the strategies that SME businesses in the tourism industry of
Livingstone have adopted or can adopt to continue in business post COVID-19 as they
embrace this change that affected the global tourism business. The theory outlines key
components that can be used in the process of making a change during planning, evaluations,
new marketing strategies etc. such as determining long-term outcomes and assumptions
4
which are goals to be achieved, identifying challenges and establishing milestones to occur in
order to achieve long-term outcomes, design programs and activities such as training,
marketing, investment promotions that will help to address challenges in order to achieve
long term outcomes and develop markers that will help to determine when an outcome has
been achieved whose progress should be assessed and measured.
1.9 Definition of key terms
SMEs – Small and Medium Enterprise businesses with few employees which could be less
than 100
Coronavirus –it is the COVID-19 disease that is infectious caused by the SARS-CoV-2 virus
Pandemic-this is a widespread of an infectious disease over a country or whole world at a
particular time
Tourist businesses- businesses that offer leisure goods and services of a tourism nature e.g.
lodges, tour operators
1.10 Chapter Summary
This chapter presented the introduction into the financial effects that the coming of the
COVID-19 pandemic has left on the tourist businesses in the tourist capital Livingstone.
5
CHAPTER TWO: LITERATURE REVIEW
2.0 Overview
This chapter provides a brief history and description of the area of study, a brief description
of the COVID-19 coronavirus disease as well as reviews of various literature on how
COVID-19 has affected the tourism industry globally as well as literature which will help
with findings of the research on strategies that tourism business can adopt to improve the
financial performance of the business post COVID-19.
2.1 Livingstone: A Tourist Capital
Livingstone Town, found in the Southern Province of Zambia was established in 1905 and
named after the missionary and explorer Dr. David Livingstone. It was a major European
settlement, close to the Zambezi River crossing over the Southern region and it was made a
capital city of Northern Rhodesia in 1911 but eventually the capital city was moved to
Lusaka in 1935.
The proximity to the Zambezi River and the spectacular Victoria Falls has led Livingstone to
become a base for travelers from all over the world wanting to explore this wonder of the
world.(Livingstone Zambia Tourism,2021)
Being a tourist capital, Livingstone town has a number of Adventure companies that offers a
number of fun and thrilling activities that local and foreign tourist can enjoy such as game
drives, Victoria falls tours, boat cruises, abseiling, micro light flights, helicopter rides,
rafting, mukuni cultural village tours etc.
Many tour companies and lodges offer a booking agency service in Livingstone to help make
your stay as easy and enjoyable as possible. You can fly directly into Livingstone via
Livingstone Airport. (Livingstone Zambia Tourism,2021)
2.2 The COVID-19 Pandemic
An article by World Health Organisation(2023) stated that COVID-19 is a disease caused by
a coronavirus
called SARS-CoV-2 and the first cases were heard of in December
2019,reportedly as viral pneumonia cases in Wuhan, People’s Republic of China. Some
common symptoms which are similar to a common cold/flu are fever, chills, sore throat,
fatigue, runny/blocked nose, headache, sore eyes, muscle ace, persistent cough, chest pains,
hoarse voice, numbness, nausea and vomiting as well as loss of sense of smell. WHO stated
6
that the following are more severe symptoms of the COVID-19 disease, difficulty breathing,
confusion, drowsiness, persistent chest pains, loss of speech and movement. A person
experiencing such needs to call their healthcare provider or go to a hospital to seek immediate
medical attention. It was also noted that persons aged 60 and above as well as those with
underlying medical problems such as high blood pressure, diabetes, HIV, cancer and other
chronic health problems are at higher risk of severe illness from COVID-19 with
consequences of severe COVID-19 being death, respiratory failure, blood clots and injury to
the heart, liver or kidney.
The World Health Organisation(WHO) advised that some preventive measures to reducing
infection of COVID-19 are social distancing, wearing of masks in crowded or poorly
ventilated spaces, good hand hygiene(hand washing and frequent sanitizing as well as
avoiding physical touch),covering the mouth and nose with a tissue when coughing or
sneezing as well as getting vaccinated followed by updated booster doses. An individual who
experiences common symptoms such as fever and cough during the COVID-19 pandemic
needs to undergo a swab procedure of samples collected from the nose to be tested for
infection of COVID-19 through a polymerase chain reaction (PCR) test and then quarantined,
if tested positive the individual needs hospital treatment sometimes even oxygen support to
help with breathing. People in close contact to an infected person also need to be tested and
quarantined until confirmation is made as to whether they are positive or negative for the
disease as they observe the preventive measures outlined by WHO.
WHO validated the use of some COVID-19 vaccines and the first mass vaccination programs
started in early December 2020(WHO,2023).During the period of the pandemic from 2020 a
number of measures were undertaken to curb the spread of the virus by restricting travel
across borders, implementing lock-downs which disrupted a lot of businesses particularly the
businesses in the tourism industry.
2.3 A Global perspective on effects of the COVID-19 pandemic on the tourism industry
Dusek and Sagapora(2021) : Effect of COVID-19 global pandemic on tourists
preferences and marketing mix of accommodation facilities
The research by Dusek and Sagapora(2021) stated that COVID-19 had greatly affected the
tourism industry with boarders closing, air fleets and cruise vessels staying grounded and
docked as well as accommodation establishments and restaurants shutting down. These
sudden changes led to loss of revenue and employment due to travel restrictions in most
7
countries. A survey was conducted to help the researcher establish the preferences for
summer holidays for Czech tourists during the pandemic to find out the wants and
expectations in terms of accommodation facilities and marketing mix. The survey was carried
out on a random sampling method with 637 respondents who were above 18 years with
closed-ended questionnaires detailing their different aspects of travel desire, intentions,
preferences and attitudes. The results of the survey on travel and destination revealed that
majority of respondents preferred local travel than international during the pandemic and also
preferred destinations that were less expensive and less overcrowded. The results on
marketing mix revealed that the majority of respondents recommended tourism businesses to
offer variety of affordable activity packages that would encourage more locals to enjoy the
tourism experiences.
Dusek and Sagapora(2021) concluded that despite the global negative effects brought about
by COVID-19,the crisis provides an opportunity to transform tourism into more socialized
form where the rights and interests of local communities and people matter. This study
highlights the importance of businesses to promote local tourism for residents that is
affordable and enjoyable instead of heavily relying on international tourists, the research
encourages diversification of businesses which will help SME businesses to survive and
thrive when faced with future changes or crises.
Mensah(2020):Unpacking the Impact of COVID-19 on tourism and repacking the hotel
services
Mensah’s report main focus was on the impact that COVID-19 ha had on tourism particularly
the hotel/accommodation services. Travel movement in most countries became restricted as
travel increased the risk of the spread of the virus at a faster pace. His report noted that World
Health Organisation(WHO) had issued travel advisories to discourage travels to destination
with cases of the pandemic and such measures in news reports rendered destinations affected
by the pandemic unattractive. This created fear of travel which coupled with lockdowns
resulted in cancellation of flights, hotel reservations and other scheduled events thereby
affecting tourism destinations and businesses. Further he also stated that all businesses and
service providers along the tourism value chain (tour operators, airlines, travel agents,
attractions sites, car hires, restaurants) were greatly affected by these changes with hotels
being among the hardest hit industries whose hotel occupancy rates and average room rates
dropped massively leading to declines in profits, loss of revenues, utilities, wages, salaries
and eventually employment. Mensah did however state that despite the panic about the
pandemic there was a positive side to the fact that nature was undergoing a healing process
8
and the environment being the base product of tourism, destinations would become more
attractive by the time the pandemic is done.
In his conclusion, Mensah(2020) elaborated the need for hotels to move from existing models
of operations and adopt survival strategies against COVID-19 by repackaging the hotel
services to make it more attractive. The following were some of the strategies he outlined:
Cost cutting measures-by cutting costs of nonessential services and areas with significant
declines in demand in order to minimize or eliminate losses.
Improve orderliness-embracing social distance and health protocols as the new normal,
improving and maintaining sanitation, health & safety and operational procedures to curb the
spread of diseases.
Embracing virtualization-due to lock-downs and travel restrictions bookings cannot be made
at physical locations thus the hotel must utilize technology systems such as emails, Skype,
zoom for their advertising, bookings as well as business operations.
Domestication-After closure of boarders and airports, hotels should be innovative and
promote local tourism by making attractive promotional packages and market them to
residents to continue being in business.
Mensah’s survival strategies will be relevant to the study in answering one of the research
objects about the strategies that can be adopted or have been adopted by tourism businesses
in Livingstone as some of the strategies Mensah outlined for hotels can still apply to other
businesses as they rebrand and market their products/services that will attract both local and
foreign tourists.
2.4 An African perspective on effects of COVID-19 pandemic on the tourism industry
Musavengame and Leonard(2021): COVID-19 Impacts on tourism: Southern Africa’s
Experiences
The article highlighted how COVID-19 had affected most of Southern African destinations
whose businesses are in a region that is a key player in the global tourism sector from
transportation, accommodation, restaurants and recreational facilities whose majority of the
people depend on this sector for their livelihood. The article noted the need for the
development of strategies for recovery from the damages caused by the pandemic. Emphasis
was made on embracing virtual tourism by using virtual reality technologies to boost
operations of businesses in the industry. Though some participants embraced a hybrid model
of in-person and virtual way of doing business, some challenges of using the virtual reality
9
technologies were identified such as poor connectivity, limited Wi-Fi access, high cost of
data and electricity as well as load shedding challenges and the conclusion was that the
adoption of virtual reality technologies will never replicate the tourist experience in physical
environments.
The article mentioned two main recommendations, the first one being the intervention of
governments and private sectors’ need to increase investments in ICT infrastructures as a way
of addressing the major challenges of successful connectivity. The second recommendation
was the restructuring and diversification of business models by deconstructing and
reconstructing existing products in order to generate new business opportunities in the
tourism industry. These recommendations will be relevant to the study in finding answers to
the extent of COVID-19 effects on SMEs business and the strategies that have been or can be
implemented to boost business operations.
Page(2021): Threats to Job Creation:Tourism and COVID-19
The article elaborated that the COVID-19 pandemic has affected many tourism-dependent
economies in Africa and elsewhere. Tourism being an important driver of economic growth
around the world, and prior to the pandemic, Africa had the second fasting growing tourism
sector in the world..Page stated in his article that from April to June 2020 the number of
international tourists arriving in African fell by 98% compared to the same period in the year
prior. This resulted in declined growth of tourism-dependent economies in 2020 as estimated
by the African Development Bank with the exchange rates being affected as well.
The article revealed that global recovery of the travel and tourism sector would depend on the
progress in development of COVID-19 vaccines and their widespread availability to Africa as
lockdown and travel restrictions minimized and businesses would eventually reopen. A
recommendation was made that governments of tourism-dependent economies can also take
policy actions to reduce the impact of unexpected future shocks by having policy makers
implement sound macroeconomic management using appropriate monetary, fiscal and
financial policies as well as allowing exchange rates to adjust in an orderly manner.
In conclusion,Page stated that with appropriate vaccines and policies, tourism would continue
to create productive employment as the continent continues to offer beaches, culture and
wildlife for the world to experience.
10
2.5 A Local perspective on effects of COVID-19 pandemic on the tourism industry
Tabetando(2020):Tourism and COVID-19 in Zambia
The author brings to light the impact that COVID-19 has had on Zambian tourism. He stated
that before the pandemic the industry was showing healthy signs of growth, particularly in
2019, the industry contributed 7% of GDP as well as 7.2% of total employment with
international visitors spending about $849million.
During the COVID-19 pandemic, Zambian boarders did not close but due to travel
restrictions and lock-downs that were happening globally, the number of international visitors
rapidly decline, In the first three months of 2020 Zambia experienced a drop of over 14,000
international visitors and the Eco-Tourism Association of Zambia(ETAZ) members estimated
that Zambia’s safari tourism as well as allied sectors like airline/charters would suffer a loss
of income of about $100million in 2020.The effects of these drastic development during the
pandemic led to about 165 of 275 lodges and camps in Zambia closing down with about
7,000 job losses expected to happen as most tourism businesses particularly in Livingstone
and Zambia’s protected areas faced the possibility of bankruptcy.
The article further mentioned that loss of income in safari firms would also lead to a
significant drop in funding for conservation which is highly funded by donor organizations
and safari tourism firms. The other possible effect of COVID-19 was a possible increase in
poaching as eco-safari firms laid off workers and cut down funding of conservation activities.
One of the challenges that the author highlighted after various interviews were conducted in
April 2020 was the issue of various licenses that most businesses are required to have to
operate which became a struggle during the pandemic. The recommendation was that
governments needed to engage with the tourism sector to address old and new pressing
challenges particularly consolidate the licensing process into a one-stop shop so at to
facilitate entry of new firms into the sector especially after COVID-19 is over.
Shenton(2021): The effects of COVID-19 on Safari Tourism in South Luangwa National
Park in Zambia
Shenton’s research was focused on effects of COVID-19 on Zambian tourism as well as
finding out how the businesses have survived during the pandemic and some adaptations
strategies were given that can be used by other tourism businesses post COVID-19.After the
first 2 cases of COVID019 were recorded in Zambia in March 2020,the government enforced
several rule and regulations in an attempt to prevent the rapid spread of the virus such as
11
limiting the number of people that could be in one place, made it mandatory to wear masks in
public places, closed schools and churches.
During the pandemic, worldwide travel restrictions, bans and lockdowns led to a significant
drop in international visitors and this lack of tourism activities affected the Zambian economy
and society which depends on tourism revenue. Reportedly by May,2021 confirmed cases of
the coronavirus had risen above 93,000 with over 1,000 deaths; by the end of 2021 the
recovery
rate
had
increased
with
over
91,000
recorded
as
recovery
cases(wordometer,2021b).The decrease rate of COVID-19 cases meant there was hope for
the tourism sector to have a more successful year in 2022 as the travel restrictions and
lockdowns had started to reduce and international visitors started to visit Zambia
again...Shenton’s research emphasized on the need for adaptation strategies during the
pandemic as a way for businesses to survive and recover as most businesses, countries and
people had been hit like a shock by the pandemic and there had been little to no time to
facilitate preparative measures. Some of the strategies suggested for adoption in the process
of adaptation were pricing, adoption of information and communication technologies such as
virtual reality and a focus shift on domestic market as a way to continue business in the
tourism sector during the pandemic. This focus shift in particular would require repackaging
and using promotional marketing packages to attract and improve the domestic market as
most businesses’ products were more focused on the international market in terms of pricing,
marketing and accessibility. The author however noted that in a study conducted by
Woyo(2021) it was concluded that for distressed destinations like Zimbabwe, domestic
tourism would not be a sustainable recovery strategy due to various government policies and
legislations that make a focus on domestic tourism difficult and that this could be said for
Zambia as well.
Some of the strategies for adaptation mentioned in Shenton’s research could still be useful in
tourism business today post COVID-19.The pandemic has showed that the domestic market
is just as important as the international market and the Zambian government and relevant
stakeholders in the tourism sector should work together to promote domestic tourism even as
they promote the rich wildlife, culture and attractive destinations that the country has to offer
to the international market.
12
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Overview
This chapter introduces the research methodology that was used in the research, particularly;
it provided the research design that was used, the sources of data, the targeted population,
sample size, data collection tools and finally the data analysis methods.
3.1 Research Design
The study was carried out using an exploratory research design, to enable in-depth qualitative
analysis of the findings. An exploratory design was ideal as the research involved discussions
and measurement of the performance of the different businesses in how they conduct their
operations. This research design facilitated the collection of both qualitative and quantitative
data that was used in this research as an effective way of analyzing information.
3.2 Study Population
The population comprised of participants from the different tourist business of tour operators,
lodges, Zambia Tourism Agency (ZTA) as well as the Department of National Parks and
Wildlife (DNPW).
K = N/n
N being the population of Livingstone
n being the tourism sector sample population
K being the sample size
K = 50,897/ 1000 = 51
3.3 Population Sample
This study involved a total sample size of 51 consisting of 5 ZTA employees,12 management
employees and 19 employees of 6 selected tour operator companies,3 management
employees and 6employees of 3 selected lodges as well as 6 DNPW employees.
3.4 Sampling Techniques
Purposive sampling was used as it targeted a group of people believed to be reliable for the
study. Purposive sampling is a viable sampling technique in obtaining information from a
very specific group of people(Njobvu,2022).In this study the relevant participants sampled
13
were tourist businesses owners like tour operators and lodges to get in-depth knowledge and
information of their business before and after
COVID-19 pandemic, ZTA whom tour
operators need to be registered under as a requirement to conduct business in the park and
DNPW which is department under the ministry of tourism which issues licenses, permits to
tour operator businesses as well as collect statistics for all tourist arrivals.
3.5 Data Collection Instruments
The primary data that was used to collect data was through
-interviews in order to get in-depth knowledge of experiences, opinions and feelings of the
participants
-observations in order to study how the different businesses operate in trying to answer the
questions of the research problems and objectives e.g. observe the working hours, observe the
daily operations of how business is conducted and study the working attitudes of employees
-a mix of open-ended and closed-ended questionnaires which will be conducted by either
phone or mail to get more narrative information.
3.6 Questionnaires
The researcher designed a combination of open format and closed format questions in order
to get a deeper insight into the study.
3.7 Interview Guide
The interview guide was used to collect information about how the various SME businesses
in tourism industry have been affected during and after the COVID-19 pandemic, as well as
find out the strategies that these businesses have adopted or strive to adopt in order to
continues thriving and surviving in business. The interview guide gave in-depth knowledge
and
understanding
of
experiences,
views,
opinions,
preferences,
struggles
that
individuals/businesses have faced as detailed question’s will be asked.
3.8 Validity and Reliability
3.8.1 Validity
The questionnaires and interview guide were prepared and checked by the researcher.To
ensure their validity they were also presented to the Supervisor who is a research consultant
for further improvement.
14
3.8.2 Reliability
To ensure reliability,the researcher used structured observation in order to have a clear
understanding of the research objectives of the study.
3.9 Data Analysis
Interpretive Phenomenological analysis(IPA) was used to analyze information collected to
come up with findings to the research problem as this type of analysis helps a researcher to
understand personal experiences of participants on how an event or occurrence has affected
them.
Thematic analysis was also used in order to identify major and sub-themes from interview
information that was gathered.
Quantitative and qualitative Statistics data that were collected were processed and analyzed
using the SPSS version 26 system which was presented as descriptive statistics in form of pie
charts,bar graphs and tables.
3.10 Ethical Consideration
Research ethics were practiced during the data collection process when engaging and
obtaining information from participants.The researcher obtained ethical clearance from the
Ethics Committee of the University and also obtained informed consent from each participant
by explaining the purpose of the study so that they were at liberty to participate in the study
or decline.Unwilling participants who did not want to be part of the research process were not
forced or coerced into giving out information. The willing participants were respected by
engaging them professionally and using the confidentiality clause to protect the information
they gave out while protecting their identities and concealing it as anonymous participants.
15
CHAPTER FOUR : PRESENTATION OF RESEARCH FINDINGS
4.0 Overview
This chapters presents the findings which are based on primary data that was collected
through questionnaires which were distributed to 51 participants in the tourism industry who
were relevant to the research study such as SME tour operators,SME lodge owners,ZTA
tourism regulators and DNPW employees.The data collected from the questionnaires for the
research study was analyzed using descriptive statistics through frequency and frequency
distribution.51 copies of questionnaires were prepared and distributed among the respondents
who answered correctly as instructed and returned them back to the researcher.The data was
then analyzed and presented in tables,graphs and pie charts.
The study was guided by these two objectives :to identify the challenges faced by SMEs in
the post COVID 19 pandemic and to determine the business strategies that are useful to
SMEs in the post COVID 19 pandemic era.As part of presenting the findings background
information is presented in the first section of the chapter while the second section is the
presentation of the research findings relating to the two research objectives of the study.
4.1 Demographic Characteristics of Participants
The demographic characteristics of participants included their gender,age, level of
education,employment level and number of years in service/business which is important in
ascertaining the business strategies that are useful to SMEs in the post COVID 19 era for
continuity and growth of tourism businesses.
16
4.1.1 Gender Distribution
Gender of Participants
27%
Females
Males
73%
Figure 1 shows that out of 51 participants the majority were male37(73%) while the minority
were female 14(27%) which suggests that the gender margin in the tourism industry between
males and females is relatively high it implies that there is an unequal representation of
males and females in the tourism industry.
4.1.2 Age Distribution
Age group
Females
Males
Total
Percentage( %)
20-29
3
3
6
12
30-39
6
17
23
45
40-49
4
10
14
27
50-59
1
5
6
12
Above 60
-
2
2
4
Total
14
37
51
100
Table 1 shows that the majority are in the age bracket of 30-39 representing 23(45%) of the
participants,followed by the age bracket of 40-49 who were 14(27%),The age bracket of 2029 and 50-59 each had a total of 6(12%) while the minority of the participants were those
above age 60 who were 2 with a percentage of 4 of the total participants
17
4.1.3 Education level Distribution
Educational level of participants
60
50
51
40
30
28
20
17
10
2
4%
4
8%
33%
55%
100%
0
masters
bsc degree
diploma
Ряд1
other
total
Ряд2
Figure 2 shows that 28(55%) of the participants are the largest number who hold other
qualifications like college certificate,grade 12 certificate,while 17(33%) are diploma holders
of mostly tourism related courses who were able to give a fair assessment of the challenges
that were faced during the pandemic as well as the strategies that were employed to survive in
the business.4(8%) participants were bachelors degree holders while 2(4%) were masters
degree holders.
4.1.4 Work Experience in Tourism Industry Distribution
Work
Tour
experience(years) Operator
Percentage
Lodge
Other
Total
%
1-5
3
1
-
4
8
5-10
16
4
6
26
51
10-20
10
3
4
17
33
Over 20
2
1
1
4
8
31
9
11
51
100
Total
Table 2 shows that 26(51%) participants are the highest number who have work experience
between 5-10 years followed by 17(33%) who have work experience between 10-20 years as
well as 4(8%) participants with over 20 years work experience which indicates that a total of
47(92%) of the participants have been in the tourism industry long enough and understand
18
how the industry operates which was very vital to obtaining information for the study.A total
of 4(8%) participants were the lowest number with work experience between 1-5 years some
of whom were employed during the COVID-19 pandemic.
4.1.5 Position and Business Category Distribution
Tour
Operator
Lodge
Travel
Other
Total
Percentage
3
-
2
13
25
1
-
4
9
18
Management 3
2
-
2
7
14
Other
16
3
-
3
22
43
Total
31
9
-
11
51
61
17
-
22
Upper
Management 8
Middle
Management 4
Lower
Percentage
%
100
Table 3 shows the positions participants hold in their respective businesses as well as the
business category distribution.Out of 100% tour operator SMEs in the tourism industry
represent 31(61%) with 8 holding upper management positions,4 hold middle management
positions,3 hold lower management positions while 16 hold other management
positions.9(17%) represents lodge SMEs with 3 holding upper management positions,1 holds
a middle management position,2 hold lower management positions while 2 hold other
management position.The remaining 11(22%) represents others like ZTA and DNPW
employees whom 2 hold upper management positions,4 hold middle management positions,2
hold lower management positions while 3 hold other management positions.This indicates
that the majority of participants are in positions that give them the needed expertise in their
duties which was important in establishing the research objectives and answering the research
questions.
19
4.2 Objective 1 : To identify the challenges faced by SMEs in the post COVID 19
pandemic
4.2.1 Foreign Currency Frequency Distribution
FOREIGN CURRENCY DISTRIBUTION
OF PARTICIPANTS
US Dollar
SA Rand
Euro/Pound
All
Other
6%
14%
10%
51%
19%
Figure 3 shows statistics of the foreign currency that respondents frequently use in their
business to trade aside from the Zambian Kwacha. 51% of the participants trade with the
United States Dollar, 19% trade with the South African Rand, 10% trade with the
Euro/British Pound,while 14% trade with all 3 foreign currencies mentioned and 6% of the
respondents trade in other foreign currencies such as the Namibian dollar and Botswana Pula
which affected operations and revenue inflow of most of these businesses who relied heavily
on international tourism due to the disruptions,lock downs and travel restrictions brought
about by the COVID-19 pandemic.
One participant said:
Ever since the lockdown dollar inadula,kwacha nayo siyipanga sense kaya tizankala bwanji
apa manje ba sister.
Another stated:
It became so difficult to do business because most of our prices were dollar tailored now with
these fluctuations the rate was so high so our locals couldn't afford.
While another participant lamented:
It was difficult to borrow so that businesses could be revived or kept going because interest
rates were high because of the dollar fluctuating like this
20
4.2.2 Has COVID-19 Affected the Business?
Options
No. Of Respondents
Percentage %
Yes(negatively)
51
100
No(positively)
-
-
Total
51
100
Table 4 shows a 100% record of how all 51 participants were affected negatively in their
business operations by the COVID-19 pandemic which happened without warning.One
participants from the lodge business noted :
the coming of the COVID-19 pandemic was so bad that we had to completely close our
lodge for over a year because we no longer had clients both locally and internationally so we
couldn’t maintain the lodge,pay bill or continue to pay workers.Even though we have now
reopened it will take some years to recover but we are hopeful that it will get better.
A DNPW participant elaborated that :
After it was announced that there was a lockdown implemented with restricted movements in
the country we had to adjust our working days and hours,only one person would report for
work and during the week we would have even zero clients visiting the park,we would only
see one or two tour operator vehicles coming over during the weekend with maybe 3 clients
or sometimes they would just come and park their vehicle in hopes that some local clients will
show up needing their game drive services,elo its scary being out here exposed to the risk of
contracting the chi same COVID-19,I just hope it ends soon because I feel for those with
businesses to run .
While a tour operator participant exclaimed that :
It is just by the grace of God that we are even still employed because our friends had to be
laid off but even then sometimes we would go for months with little to no pay but we are
surviving so chabe,if it continues like this some of us will be forced to just go back to the
village to farm than suffering like this.
A ZTA participant also mentioned in an interview that :
most of the tourism business owners have not been able to pay or renew their license fees
because our industry is one of the industries that have been heavily hit by the
pandemic,international clients who are the bigger market were no where to be seen so it has
been a big set back for businesses so we had to find ways to help some of these businesses so
tat they don’t complete shut down,infact most of the smaller businesses have unfortunately
21
shut down and I just hope that after this is over they can be able to get back on their feet,of
course we will also do our part to help make things easier for them.
4.2.3 Have there been any opportunities for growth in the business brought about by the
COVID-19 pandemic?
OPPORTUNITY FOR BUSINESS
GROWTH FOR PARTICIPANTS
Ряд2
100%
33%
67%
17
34
51
Ряд1
YES (P OS ITIVE LY)NO(NEGATIVE LY )
TOTAL
Figure 4 shows that despite the COVID-19 pandemic 34(67%) of the respondents were able
to discover new opportunities to grow their businesses while 17(33%) were unable to
discover new opportunities to grow their businesses.A participant from the tour operator
business narrated :
This pandemic has really taught us not to be so dependant on international clients but to also
put more focus on promoting local tourism and looking for other innovative ways to grow
,and the locals have really been supportive to us mwandi otherwise it was bad.
Another explained that :
we had to lower our rates for accommodation just so that we could survive,we even had to
work hand in hand with other tourism businesses to offer a collective and attractive package
to our clients in order for all to have a share,otherwise we would have closed up like most
lodges.
While another lodge participant mentioned that:
We have not been able to grow just merely surviving and we have incurred a lot of debt in
order to keep going but we are hopeful that in the long run things will get better for us.
22
4.3 Objective 2 : To determine the business strategies that are useful to SMEs in the
post COVID 19 pandemic era
4.3.1 Were you as a business able to invest in domestic tourism of local visitors during
and after the pandemic?
Options
No. Of Respondents
Percentage %
Yes
45
88
No
6
12
Total
51
100
Table 5 statistics indicate that 45(88%) of the respondents were able to invest domestic
tourism during the and after the pandemic while 6(12%) of the respondents were not able to
invest in domestic tourism due to various challenges they experienced during the pandemic
A tour operator owner lamented that:
It has not been possible to invest in domestic tourism as it stands because it means lowering
our already low prices which will mean operating on a loss in the name of promoting local
tourism.
While another stated :
Yes,we had to go back to the drawing board and come up with even more affordable
packages for our locals who have always supported our business,you can lower prices and at
the end of the day still make many sales which will give you something to take home,its better
than nothing and its also a way of marketing yourself so when things get better those clients
will remember you and come back.
4.3.2 As a business have you been able to adapt and cope with the changes brought
about by the pandemic?
Options
No. Of Respondents
Percentage %
Yes(positively)
46
90
No(negatively)
5
10
Total
51
100
Table 6 shows that 46(90%) of the respondents were able to adapt and cope with the changes
brought about by the pandemic and continue in business while 5(10%) were unable to adapt
and cope as they had to close down their businesses.
23
One lodge owner participant said :
The pandemic and its consequences were sudden and harsh that we had no chance to adapt
or cope so we had no choice but to close because we started operating on losses as we didn’t
have business anymore,customers were no where to be seen
While a tour operator participant said :
Of course we just had to adapt and cope in order to survive and slowly it started to pay off,we
are not there yet but we will keep improving
A DNPW participant also said :
We just had to adapt,make few adjustments to our operations and keep going kaili with boma
we still have to keep working no matter what
4.3.3 Have you been able to employ new strategies as a business that have helped to
keep the business going?
New strategies employed by
participants
6%
yes
no
94%
Figure 5 shows that 48(94%) of the respondents have been able to employ new strategies that
have helped their businesses to keep going during the pandemic and post pandemic while
3(6%) have struggled to employ strategies that can help their businesses to grow.
From the lodge business one participants stated:
We tried our best to come up with workable strategies but with the lockdown the business
suffered so much so those strategies did not work
24
While another from the tour operator business explained :
It was a struggle at first but we eventually came up with some temporary strategies for
different groups of clients so that we could accommodate all kinds of tourists during the
pandemic and I think going forward after the pandemic those strategies will still be useful to
the business so we will maintain and improve on them
A ZTA participant also explained
We had to come up with a strategy that would be helpful to the industry and businesses thus a
waiver on licensing fees was given up until the pandemic was over and this gave some
financial relief to business owners
4.3.4 Do you think domestic tourism should be invested in more than international
tourism?
Options
No. Of Respondents
Percentage %
Yes
41
80
No
10
20
Total
51
100
Table 7 shows that 41(80%) of the respondents expressed that there is need to invest more in
domestic tourism so as to prepare for future crises that may occur like the COVID-19
pandemic while 10(20%) expressed that domestic tourism in as much as it should be invested
in,international tourism remains more impactful in the tourism industry than domestic
tourism thus both domestic and international tourism should
be invested in to
accommodation and grow the tourism industry.A ZTA participant’s view was :
I don’t think domestic tourism should be invested in more because the dominant market is
the international client,we can just make sure that we promote local tourism a little more that
we have been doing in the past as we continue to market Zambia
While one participant said :
certainly,we should invest more into local because look at at what happened during
COVID,the bazungus were no where to be seen and had it not been for our own people
coming in numbers to support us some of us wouldn’t even be in this business today,domestic
marketing is the only market that will remain available when all are closed because it is more
reliable and easy to service.
25
Another participant’s view was :
I don’t think investing more in local is the way to go as we still rely on the international for
majority businesses here in livingstone,the best would be for government to make more effort
in striking a balance on promoting both the international and local tourism so that even in
eventualities like what happened with COVID we are not so much affected
4.3.5 Do you think there is hope of recovery for tourism in Zambia post COVID-19?
PARTICIPANTS VIEW ON RECOVERY
OF TOURISM IN ZAMBIA
Ряд2
YES(STRONGLY
AGREE)
YES(AGREE)
NO(DISAGREE)
100%
0%
0
27%
73%
14
37
51
Ряд1
TOTAL
Figure 6 shows statistics that 37(73)% of the participants strongly agree that tourism is on a
road to recovery while 14(27%) of the participants agreed that though it is slowly recovering
other businesses may never be able to reopen or fully recover from the effects experienced
due to the pandemic
A DNPW particpiant commented:
Yes I strongly believe there is hope for recovery when you compare the statistics of tourist
visits to the park during the pandemic and post -pandemic,there is an improvement in the
numbers,we finally even have internationals but during the pandemic we only had locals that
is citizens and residents.
While a participant from the tour operator business said
Yes,I agree that the tourism industry will revive again though recovery may be painful and
long plus this pandemic has taught us that we shouldn’t be too comfortable but be ready to
adapt to change in good or bad times
26
CHAPTER FIVE: DISCUSSION OF RESEARCH FINDINGS
5.0 Overview
This chapter presents the discussion and the interpretation of results from the findings of the
study conducted.Based on the objectives of the study,an understanding was drawn from these
selected institutions and businesses who are major key players in the tourism industry like
tour operators,lodges,DNPW and ZTA.
5.1 Objective 1: To identify challenges faced by SMEs in the post COVID-19 pandemic
Based on the findings,it is evident that the COVID-19 had a negative impact on the
tourism.The most common challenge that was faced by tourism businesses in Livingstone
was loss or reduction of revenue due to reduced numbers of tourist arrivals at major tourism
sites and attractions due to closure of businesses and travel restrictions globally.The impact of
this loss of revenue led to business adapting and coping with the changes by putting up
measuring such as scaling down ob their operation costs,laying off some employees and
proposing to pay the remaining employees basic salaries which would also delay when the
business was at its lowest.Despite the pandemic businesses were still required to pay their
taxes,insurance and renew their permits in order to continue operating which also proved to
be a challenges for most of the business as they were not making enough to maintain their
business like fixed bills and loan repayments.The negative effect of having no international
tourist arrivals meant that no forex was coming into the country,leading to hike in commodity
prices and this meant that the level of competition among business rose as they tried to
survive by relying on domestic tourism until the pandemic was done.Most of these challenges
proved to be too much for some businesses which led to closures of most of them.Revenue
collection through government institutions like DNPW and ZTA significantly dropped due to
reduced tourist arrivals as well as failure of businesses to pay for renewal of their tourism
trading licenses.Tabetando(2020) expressed his views on the threat that the COVID-19 would
have on the tourism sector in Zambia.He stated that there was a high risk that many firms and
business would shut down and disappear which would undermine any ultimate economic
recovery when international travel resumed.He further stated that out of 257 lodges and
camps,165 closed down and most businesses in Livingstone were facing bankruptcy with
many people likely to lose their job.Short(2023) elaborated how the tourism sector through a
ministry of tourism survey operated at only 15% capacity which resulted in millions of
dollars in lost revenue and in hundreds of jobs being lost.These authors contributions align
27
with the findings of the study on the challenges that were faced by SMEs post COVID-19
pandemic.
5.2 Objective 2: To determine the business strategies that are useful to SMEs in the post
COVID-19 pandemic era
The coming of the COVID-19 pandemic saw businesses struggle to adapt and cope with the
new way of life,most businesses failed to cope and had to close down but the few that
remained operational had to employ some strategies order to survive post COVID-19.The
main strategy that most if not all businesses used was to follow the health guidelines from
Ministry of Health as well as reduce their rates for domestic tourism in order to attract local
tourists.Due to the restriction in movements business had to go digital in their marketing over
several media platforms as well as utilize contact-less technologies in order for booking
processes to be made with ease and offer attractive activity/adventure packages that would
benefit the business and customers. Some businesses after reducing the number of its
employees introduced multitasking ,applied for CDF funding in order to revamp business as
well as venture into local intercity transportation in order to generate some revenue to pump
into the business or be able to pay off debts they owe.Government institutions introduced
waivers on renewal of tourism licenses so that businesses can continue without the financial
burden that comes with legalities for a business.According to International Trade
Administration(2021) businesses in the tourism sector in Zambia had identified creative ways
to stay open and reduced prices to entice domestic tourism during the pandemic and
after.PMRC Zambia(2021) stated that despite the global lock downs the pandemic brought
some variable lessons on the importance of promoting local tourism and mentioned that
government through ZTA an d tourism businesses need to continue to promote local tourism
through suitable packages that will encourage and motivate citizens to harness the tourism
sector.The adaptation strategies by Shenton(2021) of adjusting prices,adopting technologies
for communication and focusing on promotion of domestic market by repacking and using
promotional marketing packages to attract local tourists were used by most businesses post
Covid-19 pandemic.The study reviewed that the strategies outlined by the mentioned
researchers are indeed useful and they helped businesses that adopted them to grow and
survive the pandemic.
28
CHAPTER SIX : CONCLUSION AND RECOMMENDATIONS
6.0 Overview
This final chapter presents a conclusion and recommendations of the study which were
derived from the findings of the study.The chapter also outlines limitations of the study
which were as a result of the challenges faced during the study.Further it also describes the
new knowledge that was obtained from the study and it gives suggestions for future research
study.
6.1 Conclusion
6.1.1 Objective 1: To identify challenges faced by SMEs in the post COVID-19
pandemic
The study conducted concluded that the COVID-19 pandemic disrupted business operations
which negatively affected the financial performance of SMEs tour operators and lodge
businesses in Livingstone as they faced many challenges which forced a number of them out
of business.It was observed that a number of employees in the tour operator and lodge
business did not have a positive attitude towards work especially after businesses were forced
to scale down on employees,cut down on salaries as most of them became demoralized.Most
businesses also had weak operation systems in place which also contributed to their failure to
employ innovative strategies to help them cope with the effects of the pandemic.
6.1.2 Objective 2 : To determine the business strategies that are useful to SMEs in the
post COVID-19
On a positive note some SMEs,old and newer, were able to adapt and implement some
innovative and survival strategies as a way of coping during the pandemic era.One top
strategy that worked for most SMEs was to collaborate and work together to share
resources,marketing strategies and risks during the pandemic which helped them to stay
competitive when the only available market was local.
6.2 Recommendations
Based on the findings of the research,to help SMEs in the tourism industry to recover post
COVID-19 the following recommendations are proposed:
1. SMEs should be encourage to diversify their streams of revenue and explore other business
ideas other than tourism related to reduce dependence on a single market,diversifying will
help SMEs to mitigate future risks and unexpected eventualities like the pandemic
29
2.With the advancing of technology,SMEs should enhance efficiency of their operations by
embracing digital technologies in order to grow their customer base as well as adapt and
incorporate the changing customer preferences into their business services
3.One effective way to ensure that a business has sustainable operations even during
uncertain times,there is need to prioritize effective financial planning and management which
SMEs in Livingstone are encouraged to do
6.3 New Knowledge
The study contributes to all stakeholders in the tourism industry and the economy through
successful contributions that the various players in the industry make.The strategies that
SMEs adopted should be incorporated into the business operations post COVID-19 as these
are strategies that can help the to diversify and continue to develop skills that will help the
business to grow.Digital transformation and incorporation into a business should be top
priority in the industry to utilize online platforms digital marketing in order to connect
effectively with customers and increase their streams of revenue.
6.4 Limitations
There were two major limitations to the study:
-it was difficult to access financial data of some SMEs because they did not feel free to share
confidential information
- qualitative responses from some participants were biased due to lack of understanding of the
topic
6.5 Suggestions for future research
-This study focused on tour operators and lodge owners in the tourism industry in
Livingstone,future research can be expanded on this study to include other businesses within
the industry to track the long term effects of the COVID-19 pandemic on SMEs in
Livingstone.
-Future research can also be done by conducting a comparative analysis between Livingstone
and other similar tourist destinations in Zambia to identify the common challenges,growth
and recovery strategies in order to provide broader perspective of the effects of the COVID19 pandemic on businesses.
30
REFERENCES
D.Shenton(2021).The effects of COVID-19 on Safari Tourism in South Luangwa National
Park in Zambia.Dalarna University
D.Stein and C.Valters(2012).Understanding theory of change in international
development.Justice and Security Research Programme,International Development
Department,LSE,Houghton street,London,W2A,2AE
F.Mphande and Dr.B Mwanza(2020).Data Collection Methods.Research Methods
Powerpoint slides.University of Zambia
I.Mensah(2020).Unpacking the Impact of COVID-19 on tourism and Repacking the Hotel
Service.University of Cape Coast.Retrieved from
https://www.hospitalitynet.org/opinion/4098657
International Trade Administration(2021).Zambia-Travel and Tourism.Retrieved from
https://www.trade.gov/country-commercial-guides/zambia-travel-and-tourism
J.Adams,H.T.A Khan,R.Raeside and D.White(2007).Research Methods for Graduate
Business and Social Science Students.Sage Publications
J.Page(2021).Threats to Job Creation:Tourism and COVID-19.Retrieved from
https://www.brookings.edu/blog/africa-in-focus/2021/02/18/threats-to-job-creation-tourismand-covid-19
Kathy Short(2023).Zambia Tourism Set for Recovery Post Pandemic.Voice of
Africa.Retrieved from https://www.voaafrica.com/a/zambia-tourism-recovery/7115916.html
Livingstone-Zambia Tourism(2021).Retrieved from
https://www.zambiatourism.com/towns/livingstone
Major Epidemic and Pandemic Diseases.Retrieved from
https://www.ifrc.org/sites/default/files/2021-06/12-EPIDEMIC-HR.pdf
31
Mitigating the Socio-economic Impact of COVID-19 in Zambia.A Rapid AssessmentApril,2020.Retrieved from
https://cuts-lusaka.org/pdf/policy-brief-mitigating-the-socio-economic-impact-of-covid-19in-zambia.pdf
N.Njobvu(2022).Research Methodology Class in Business Management,Literature Review
Lecture Notes.University of Zambia.Powerpoint Presentation
PMRC Zambia(2021).A sustainable and resilient tourism sector in the face of the
pandemic.Retrieved from https://pmrczambia.com/blog-a-sustainable-and-resilient-tourismsector-in-the-face-of-the-pandemic/
R.Dusek and N.Sagapora(2021).Effect of COVID-19 global pandemic on tourist’s preference
and marketing mix of accommodation facilities-case study from Czech Republic.Institute of
Technology and Business in Ceske Budejovice,Faculty of Corporate Strategy
R.Musavengame and L.Leonard(2021).COVID-19 Impacts on tourism:Southern Africa’s
Experiences.Retrieved from
https://www.tandfonline.com/doi/full/10.1080/0376835x.2021.2018995
R.Tabetando(2020).Tourism and COVID-19 in Zambia.Retrieved from
https://www.theigc.org/blogs/covid-19/tourism-and-covid-19-zambia
UNWTO.(n.d.).COVID-19:Putting People First.Retrieved from
https://www.unwto.org/tourism-covid-19-2020
UNWTO(June,2,2020)How are countries supporting tourism recovery.Retrieved from
https://webunwto.s3.eu-west=1.amazonaws.com/s3fs-public/2020-06/BFN V4.pdf
UNWTO.(March 8,2021).Tightened Travel Restrictions Underline Current Challenges for
Tourism.Retrieved from
https://www.unwto.org/new/tightened-travel-restrictions-underline-current-challenges-fortourism
32
World Bank Group(2018).Tourism Theory of Change.International Financial Corporation
World Health Organisation(2023).Coronavirus disease(COVID-19).Retrieved from
https://www.who.int/emergencies/diseases/novel-coronavirus-2019/question-and-answershut/q-a-detail/coronavirus-disease-covid-19
33
APPENDICES
Appendix 1: Work Plan
2023
TASK
February
Research proposal writing(chapter 1,2,3)
March
Submission of research proposal(06/03/2023
commence working on research project after supervisor's
April
approval
April
commence data collection of secondary data
April
commerce data collection via primary sources
May-June
write the data(chapter 4,5,6)
July
Editing/revising of the research project work
July
Final editing of the research project work
August
Spiral the research project document
August
Submit Final research project document
Appendix 2: Budget
ITEM
QUANTITY
PRICE
TOTAL(K)
Stationery/printing
5
100
500
Transport
800
800
Food
300
300
500
500
Binding
01
Total budget
2100
34
Appendix 3: Interview Guide 1
INTERVIEW GUIDE FOR TOURISM BUSINESS UPPER/MIDDLE MANAGEMENT
PARTICIPANTS
Effects Of Post COVID-19 Pandemic On SMEs Business Performance
1.Introduction
University of Zambia, Bachelor of Science in Accounting and Finance
a. My research
b. Privacy and recording concerns
c. respondent’s position in the company
d. describe a brief overview of the job and business operations
2.Crises and challenges
a. describe the business operations during the time of the COVID-19 pandemic
b. outline the challenges faced and experienced in the business during the COVID-19 pandemic
3.Post COVID-19 Experiences
a. describe the business operations post the COVID-19 pandemic
b. outline the challenges faced and experienced in the business post the COVID-19 pandemic
4.New strategies/Future developments
a. describe how you have adopted/embraced the changes that have affected the tourism
industry post COVID-19 to continue in business
b. outline strategies that you have discovered and worked on in order to survive post
COVID-19 pandemic
c. Should the focus be more on promoting domestic tourism?
d. How is this tourism season looking, is Tourism recovering in Zambia?
35
Appendix 4: Interview Guide 2
INTERVIEW GUIDE FOR ZAMBIA TOURISM AGENCY PARTICIPANTS
Effects Of Post COVID-19 Pandemic On SMEs Business Performance
1.Introduction
University of Zambia, Bachelor of Science in Accounting and Finance
a. My research
b. Privacy and recording concerns
c. respondent’s position in the company
d. describe a brief overview of the job and business operations
2.Crises and challenges
a. describe the operations of the organisation during the time of the COVID-19 pandemic
b. outline the challenges faced and experienced in the organisation during the COVID-19
pandemic
c.outline some of the challenges that tourism businesses have faced with regards to obtaining or
renewing their ZTA licenses for their businesses
d.what were the statistics of tourism activities during the pandemic?
3.Post COVID-19 Experiences
a. describe the operations of the organisation post the COVID-19 pandemic
b. outline the challenges faced and experienced in the organisation post the COVID-19
pandemic
c.has there been an improvement in compliance with licensing and registration of businesses
post COVID-19 pandemic?
d.has there been an improvement in the statistics for tourism activities post COVID-19
4.New strategies/Future developments
a. describe how you have adopted/embraced the changes that have affected the tourism
industry post COVID-19 to continue in business
b. outline strategies that you as an organisation would suggest to help businesses improve their
performance
c. Should the focus be more on promoting domestic tourism?
d. How is this tourism season looking, is Tourism recovering in Zambia?
36
Appendix 5: Interview Guide 3
INTERVIEW GUIDE FOR DEPARTMENT OF NATIONAL PARKS AND WILDLIFE
PARTICIPANTS
Effects Of Post COVID-19 Pandemic On SMEs Business Performance
1.Introduction
University of Zambia, Bachelor of Science in Accounting and Finance
a. My research
b. Privacy and recording concerns
c. respondent’s position in the company
d. describe a brief overview of the job and business operations
2.Crises and challenges
a. describe the operations of the department during the time of the COVID-19 pandemic
b. outline the challenges faced and experienced in the department during the COVID-19
pandemic
c.outline some of the challenges that tourism businesses have faced with regards to obtaining or
renewing their Professional guider’s licenses for their businesses
d.what were the statistics of tourist arrivals into the national park,lodges?
3.Post COVID-19 Experiences
a. describe the operations of the organisation post the COVID-19 pandemic
b. outline the challenges faced and experienced in the organisation post the COVID-19
pandemic
c.has there been an improvement in compliance with licensing of businesses post COVID-19
pandemic
d.what are the statistics of tourist arrivals into the national park,lodges?
4.New strategies/Future developments
a. describe how you have adopted/embraced the changes that have affected the tourism
industry post COVID-19 to continue in business
b. outline strategies that you as an organisation would suggest to help businesses improve their
performance
c. should the focus be more on promoting domestic tourism?
d. how is this tourism season looking, is Tourism recovering in Zambia?
37
Appendix 6: Tourism Business Employees (Upper, Middle and Lower Management)
Participants Questionnaire
Dear Respondent,
I am a student at the University of Zambia pursuing a Bachelor of Science Degree in
Accounting and Finance. I invite you to assist me in achieving the research objectives by
responding to the items in the questionnaire .I am undertaking a research on “FINANCIAL
EFFECTS OF POST COVID-19 ON SMEs BUSINESS PERFORMANCE: A CASE OF
LIVINGSTONE TOURIST BUSINESSES”
The information that will be obtained from this study will be used strictly for academic
purposes and will be handled with confidentiality. I thank you in advance for taking much of
your time to answer this questionnaire.
Instructions:
1.
Answer questions by ticking in the space provided for the first part of the questions
2.
Write brief notes to answer the second part of the questionnaire
3.
Please note that there is no right or wrong answer
38
Questionnaire
Part A
Please indicate the name of the business/company here ………………………………..
1. What is your sex?
a. Male
[
]
b. Female
[
]
a. 20-29
[
]
b. 30-39
[
]
c. 40-49
[
]
d. 50-59
[
]
e. Above 60
[
]
a. Masters
[
]
b. Degree
[
]
c. Diploma
[
]
d. Other qualifications
[
]
a. 1-5 years
[
]
b. 5-10 years
[
]
c. 10-20 years
[
]
d. Above 20 years
[
]
a. Upper Management
[
]
b. Middle Management
[
]
c. Lower Management
[
]
2. What is your age?
3. What is your highest qualification attained?
4.What is your work experience?
5. What is your position in the company?
39
d. Other
[
]
6. In which of these categories of tourism services does your business fall under?
a. Tour Operator
[
]
b. Lodge
[
]
c. Travel
[
]
d. Other
[
]
7. Has the business been negatively affected by COVID-19?
a. Yes
[
]
b. No
[
]
8. Which foreign currency does your business frequently deal in?
a. United States Dollar
[
]
b. South African Rand
[
]
c. Euro or British Pound
[
]
d. All of the above
[
]
e. Other
[
]
9. Have there been any opportunities for growth in the business brought about by the
COVID-19 pandemic?
a. Yes
[
]
b. No
[
]
10. Were you as a business able to invest in domestic tourism of local visitors during and
after the pandemic?
a. Yes
[
]
b. No
[
]
11. As a business have you been able to adapt and cope with the changes brought about by the
pandemic?
a. Yes
[
]
b. No
[
]
40
12. Have you been able to employ new strategies as a business that have helped to keep the
business going?
a. Yes
[
]
b. No
[
]
13. Do you think domestic tourism should be invested in more than international tourism?
a. Yes
[
]
b. No
[
]
14. Do you think there is hope of recovery for tourism in Zambia post COVID-19?
a. Yes
[
]
b. No
[
]
Part B
1.Outline the major challenges that were faced by the business during the pandemic
2. How did you respond or adapt to these challenges during the COVID-19 pandemic?
3. What strategies did the business employ in order to stay in business during the pandemic?
4. Post COVID-19,has there been an improvement in the performance of the business?
5. List some of the challenges the business continues to face post COVID-19
6.Outline the strategies and initiatives that you have employed as a business to help cope in
business as well as prepare for future crises
Thank you
41
42