Evaluating the Factors that Affect the Performance of Hotel Businesses in Uganda a Case Study: Desert Breeze Hotel Ltd Arua District

Abstract

This study sought to evaluate the factors affecting the performance of Hotel businesses in Uganda. Looking at the fact that hotel businesses play enormous role in bringing innovation, economic growth and prosperity through employment and contributing to GDP of an economy. The study specifically looked at three factors that affect Hotels performance in terms of return on investments, Efficiency of staff and sales growth, the factors include: Employee motivation, Management style and Location of Hotel.

A case study survey was used in the study; both quantitative and qualitative techniques were employed in the data collection process, analysis, presentation and discussion of findings. The data used in this study was both secondary and primary, a stratified random sampling technique was employed to 52 respondents consisting of; management, employees and customers of Desert Breeze Hotel Arua using self-administered questionnaires, oral interviews were carried out and observations made where necessary.

The relationships between the independent variables and dependent variables were analyzed, the findings and results presented. From the study findings, it can be concluded that factors (employee motivation, management style and location) have significant and positive effect on the performance of Desert Breeze Hotel Arua thus increasing their return on investments, efficiency of staff and sales growth.

Therefore, for Desert Breeze Hotel to improve their performance and remain competitive in the hospitality sector, they need to consider factors like employee motivation, management style, location, technology, and customer care. The study also recommends management to involve the view of employees in decision making for easy communication and management.

The study generally shows that the three hypotheses were developed and successfully tested and the analysis results showed that the three factors hypothesized significantly affecting hotel’s performance in Uganda and their availability positively impacts on the performance of hotel businesses.

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