Hotel Owners Forum Abuja (HOFA) has blamed the recent hike in electricity tariffs for the high lodging charges in hotels in the Federal Capital Territory (FCT).
The president of HOFA, Funmi Kazeem, said the recent electricity tariff hike has affected the cost of lodging in hotels in the FCT.
Ms Kazeem said this had also reduced the number of customers patronising hotels in the territory.
According to her, the electricity tariff hike has affected the sector, as hotels, resorts, and other tourist facilities also face high operating costs.
She added that this had led to a reduction in investment and decreased competitiveness, which in turn impacted the overall economy.
Ms Kazeem also noted that the tariff hike had affected the standard of living of many individuals in the country.
“The tourism sector, particularly the hospitality sector, is the second-highest employer of labour after the government made it a critical component of the country’s employment landscape.
“The hike in electricity tariff has really affected our hotel business as well as our customers. It is a great challenge confronting the sector. Addressing these challenges and other challenges in the sector is crucial to sustaining progress and promoting economic growth,” she said.
The HOFA president commended President Bola Tinubu’s administration for implementing policies to boost economic growth through privatisation and foreign investment.
She added that such would help to increase the GDP growth rate and improve the country’s economic outlook.
Meanwhile, some guests attributed the high cost of lodging to the country’s recent economic situation.
According to them, the exchange rate and general inflation made guests pay more in most hotels, which was unpleasant.
Clinton Brown, a businessman, said that hotel owners are paying high electricity tariffs and buying expensive diesel.
According to him, rooms, food and drink rates have doubled compared to last year.
Mr Brown added that he would not blame hoteliers as much because some spend millions to run generators to satisfy their guests.
Obinna Chukwueku said hotel lodging charges had drastically increased due to the impact of the exchange rate and general inflation that affected guests.
Chukwueku added that many hotels in FCT were responding to the country’s economic realities because the cost of running hotels had doubled in recent months.
Doris Ezekiel, a fashion designer, said that hotel lodging was high now due to the electricity tariff and other costs of running the hotel.
Ms Ezekiel noted that the authorities had increased taxes and regulatory fees, saying that the people in the hospitality sector decried the multiple taxations in the industry.
“They have no option but to pass the hike on to their guests. Many standard hotels in Abuja have doubled their cost of lodging,” she said.
(NAN)
