Published November 30, 2024 | Version CC-BY-NC-ND 4.0
Journal article Open

Effects of Reduced Cash Flows on Cash Management for Tourism Companies During COVID-19 Pandemic in Kilimanjaro Region, Tanzania

Authors/Creators

  • 1. Department of Economics and Business Studies, Researcher and Consultant, Mwenge Catholic University (MWECAU), Tanzania, East Africa.

Contributors

  • 1. Department of Economics and Business Studies, Researcher and Consultant, Mwenge Catholic University (MWECAU), Tanzania, East Africa.
  • 2. Department of Economics and Business Studies, Senior Lecturer, Researcher and Consultant, Mwenge Catholic University (MWECAU), Tanzania, East Africa.
  • 3. Department of Agriculture, Earth and Environmental Sciences, Researcher and Consultant, Mwenge Catholic University (MWECAU), Tanzania, East Africa.

Description

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 membersof the selected three companies (Zara Tours, Asante Tours, andMonkey Adventures) under investigation in the finance andprocuring 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. Bothquantitative and qualitative data were collected. Tool validity wasensured using content validity, the literature related to cash flowmanagement, and a discussion with the research supervisor.Reliability was tested using the Cronbach alpha coefficient, wherea value of 0.733 was obtained. Data were collected using astructured questionnaire and key informant interview guide.Descriptive statistics and inferential statistics were both used fordata analysis. The study found that changes in cash flows affectedcash 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-19pandemic such as reduced cash flows complicated cashmanagement in the operations. It is concluded that reduced cashflows during the pandemic were disrupted, resulting in cashmanagement difficulties. It is recommended that; tourismcompanies enhance their supply cost management strategies aswell as maintain healthy cash management.

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Additional details

Identifiers

DOI
10.54105/ijef.B2594.04021124
EISSN
2582-9378

Dates

Accepted
2024-11-15
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.

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