Inflation Forcing Hotels To Shut Down! – Operators Cry Out

The high rate of inflation in NIgeria is taking its toll on hotels, forcing them to shut down operations, industry operators have cried out.

Hoteliers have called on the government to intervene in the industry to address the escalating cost of doing business.

In separate interviews with The PUNCH, the stakeholders noted that their challenges were confirmed by recent figures from the National Bureau of Statistics, which revealed that inflation in the restaurants and hotels division contributed 0.40 per cent to Nigeria’s headline inflation rate, which rose to 32.70 per cent in September.

The hospitality sector is hit hard by high fuel costs and erratic electricity supply, according to the President of the Nigeria Hotel Association, Dr Patrick Anyanwu, who described the situation as “unbearable”.

He stated that hoteliers’ challenges date back to 2020 but have intensified under the current administration.

He said, “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 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 said.

Anyanwu called for urgent government intervention, noting, “We are still advising those in government to consider the masses. We are the ones that brought them in. We asked them to go there and represent us.”

Similarly, the President of the Nigeria Hotel and Catering Institute, Gbenga Sumonu, painted a bleak picture of the hospitality industry.

“The economy has greatly been unstable with the hyperinflation we are facing as investors today. This situation has affected all facets of operation, from high interest rates and rising material costs to exorbitant energy expenses,” he added.

Source:- Punchng