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‘Why hotels are expensive in Nigeria’

High cost of energy, multiple taxes and lack of social infrastructure have been given as the reasons why hotels in Nigeria are more expensive comparable to what are obtained in other countries.

An hotel consultant, Gbenga Oladele, in a chat with the media in Lagos  during the week , said  power supply has been erratic, adding that hotels  had to rely on diesel-powered generators for production.

He said “If I have one guest in my hotel, I need to supply electricity. Some hotels prepared their budget for this year on N135 per litre for  diesel, but today, diesel is being sold in the range of  N245. The question is where do you put the extra cost.? Is it on rooms or food?.

Gbenga Oladele, Head  Marketing, Leading Change Consulting, said the issue of multiple taxes is also another problem, which needs to be resolved before the cost of hotel in the country can be addressed.

“The government that is supposed to be helping hotel business  is killing the sector  with excess taxes. In Lagos , you have the consumption tax after the VAT. How do you expect business to survive when one has to pay different taxes?

He added, “but with the way things are going, businesses are finding it tough to cope, while unemployment is increasing.”

Oladele said Leading Change as a hospitality and hotel management company realises that the service that goes with the high  price being charged in Nigerian hotels are not commensurate, so they  are set to lead in the provision of training in the sector.

“We want to bring innovation in the area of providing  tailor made  professionalism  to the sector. We believe that there is need for specialised services in our industry, which can best be provided by those professionals who have extensive experience in management and operations.

Öladele said the company provides planning services in a variety of  areas like feasibility study, market analysis and facility management.

He said from experience they have come to know that Nigerian customers are not loyal to a particular hotel, “but what they want is  good services and affordable food,  we have developed a tailor made solution and not theory, that is what differentiate us from other  consulting firms. The need for experience and quality staff by most organisation cannot be over emphasised.”

He said they are putting themselves in the forefront of the industry by providing training for front office, food and beverage, housekeeping, marketing and accounts among other areas in the hotel and hospitality industry.


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