3rd November, 2024
Companies in the hospitality industry in Nigeria, particularly hotels, have started shutting down operations as inflation continues to rise in the country, the PUNCH reported.
According to the news medium, its findings revealed the stark reality as players in the industry have started calling on the government to intervene to address the escalating cost of doing business.
It quoted the President of the Nigeria Hotel Association, Dr Patrick Anyanwu, as saying that the hospitality sector was hit hard by high fuel costs and erratic electricity supply, describing the situation as “unbearable”.
He stated that hoteliers’ challenges date back to 2020 but have intensified under the current administration.
“You go to buy fuel, formerly you could manage fuel at N800/litre, but now it has gone up to N1,200/litre. Members are complaining about energy. Many have started closing their establishments. If somebody feels that diesel they bought at over N20,000 only gets them a handful of customers, are they not going to close up?” Anyanwu is quoted.
He reportedly highlighted the high cost of electricity worsened by an inconsistent power supply from distribution companies, which leaves hoteliers paying inflated bills.
“We are not receiving sufficient electricity. The amount the Discos (power distribution companies) are sending to our members when you assess it against the type of bills they are bringing, you will ask yourself, ‘when did you consume this?” he lamented, calling for urgent government intervention.
The newspaper also quoted the President of the Nigeria Hotel and Catering Institute, Gbenga Sumonu, as saying the Nigerian economy has greatly been affected by hyperinflation which in turn adversely affected operations in the hospitality industry.
