The nightclub and bar industry has warned that businesses across the country are facing severe financial losses following the implementation of the 6:00 a.m. to 6:00 p.m. liquor trading hours during the just ended holidays. They say the restrictions are threatening the survival of the sector.
In a media statement issued on Tuesday, the Association of Botswana Nightclubs and Bars (ABONIC) said many establishments have experienced a sharp decline in business since the new operating hours came into effect.
“Since the introduction of the new operating hours, many establishments have experienced a sharp decline in business. Several clubs only opened on Friday and, despite being operational, recorded extremely low customer turnout, resulting in significant financial losses,” the association said.
ABONIC said the situation has placed many businesses under significant financial pressure.
“The current situation has placed many businesses under serious financial pressure, threatening their sustainability and the livelihoods of thousands of employees who depend on the nightlife and entertainment sector,” the statement reads.
The association said the challenges had been worsened by what it described as inadequate consultation before the new trading hours were introduced.
“Many nightclub and bar owners are now being forced to consider drastic cost-cutting measures in order to survive. This may include reducing their workforce by as much as 70%, a decision that could affect hundreds of employees and their families,” the statement said.
“These challenges have been worsened by the implementation of the new trading hours without adequate consultation and meaningful engagement with key industry stakeholders. Proper consultation with nightclub and bar operators through the Ministry of Trade could have helped identify practical solutions and ensured that the concerns of the industry were properly considered,” ABONIC said.
The association also argued that the new trading hours could benefit some segments of the liquor industry at the expense of nightclubs.
“ABONIC is concerned that if the 6:00 a.m. to 6:00 p.m. liquor trading hours continue without proper coordination, monitoring and assessment of their impact, the policy may end up benefiting mainly liquor wholesalers and liquor stores, while placing the majority of nightclubs, entertainment venues and their employees at a significant disadvantage,” it said.
ABONIC warned that many operators are now considering drastic measures to stay afloat.
“Many nightclub and bar owners are now being forced to consider drastic cost-cutting measures in order to survive. This may include reducing their workforce by as much as 70%, a decision that could affect hundreds of employees and their families,” the statement said.
The association also called on the Ministry of Trade to review nightclub licence fees, saying current costs are adding to the financial burden on businesses already struggling with declining revenues and rising operating expenses. “A fair and sustainable licensing framework would allow nightclubs and bars to compete effectively in the market, protect existing businesses, preserve jobs, and continue contributing to Botswana’s economy through tourism, entertainment and employment creation,” ABONIC said.
To strengthen its case, the association said it is collecting data from its members on employment levels, potential job losses, the financial impact of the new trading hours and the effect of licence fees on business sustainability.
“This information will help demonstrate the extent of the challenges facing the sector and support constructive engagement with Government and relevant stakeholders on possible solutions,” it said.
ABONIC described the nightlife industry as an important contributor to Botswana’s economy through employment creation, tourism, entertainment and business opportunities. It called for urgent dialogue with the Ministry of Trade and other stakeholders to review the current situation, consider license fee adjustments and develop a balanced approach that protects jobs while ensuring the sustainability of businesses.
