Effects of Reduced Cash Flows on Cash Management for Tourism Companies During COVID-19 Pandemic in Kilimanjaro Region, Tanzania
Samson Chacha Megewa1, Nyanjige Mayala2, Gileard Minja3
1CPA Samson Chacha Megewa, Department of Economics and Business Studies, Researcher and Consultant, Mwenge Catholic University (MWECAU), Tanzania, East Africa.
2Dr. Nyanjige M. Mayala, Department of Economics and Business Studies, Senior Lecturer, Researcher and Consultant, Mwenge Catholic University (MWECAU), Tanzania, East Africa.
3Dr. Gileard Minja, Department of Agriculture, Earth and Environmental Sciences, Researcher and Consultant, Mwenge Catholic University (MWECAU), Tanzania, East Africa.
Manuscript received on 27 August 2024 | Revised Manuscript received on 18 September 2024 | Manuscript Accepted on 15 November 2024 | Manuscript published on 30 November 2024 | PP: 42-50 | Volume-4 Issue-2, November 2024 | Retrieval Number: 100.1/ijef.B259404021124 | DOI: 10.54105/ijef.B2594.04021124
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© The Authors. Published by Lattice Science Publication (LSP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The COVID-19 pandemic affected businesses and organizations in their daily operations. Tourism businesses were the most affected, especially in countries whose economies are dependent on the tourism sector. This study sought to assess the effects of reduced cash flows during the COVID-19 Pandemic on cash management as part of the working capital management practices of the tourism companies in the Kilimanjaro region of Tanzania. The study was informed by the Cash conversion cycle (CCC) theory. The population for the study was 67 staff members of the selected three companies (Zara Tours, Asante Tours, andMonkey Adventures) under investigation in the finance and procuring departments. The study used a sample of 67 respondentsdetermined by census techniques as the population was small, commanding the entire population to be a sample size. Both quantitative and qualitative data were collected. Tool validity was ensured using content validity, the literature related to cash flow management, and a discussion with the research supervisor. Reliability was tested using the Cronbach alpha coefficient, where a value of 0.733 was obtained. Data were collected using a structured questionnaire and key informant interview guide. Descriptive statistics and inferential statistics were both used for data analysis. The study found that changes in cash flows affected cash management for the three tour companies in the study area, which were statistically significant at p-values less than 0.05. Specifically, the findings show that the effects of the COVID-19 pandemic such as reduced cash flows complicated cash management in the operations. It is concluded that reduced cashflows during the pandemic were disrupted, resulting in cash management difficulties. It is recommended that; tourismcompanies enhance their supply cost management strategies as well as maintain healthy cash management.
Keywords: COVID-19 Pandemic, Tourism Business, Reduced Cash Flows, Cash Management.
Scope of the Article: Economics