Hotel owners blame increased cost of lodging on rise in electricity tariffs

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Holtel Owners Forum Abuja

This has reduced the number of customers patronising hotels in Nigeria’s federal capital.

The Hotel Owners Forum Abuja (HOFA) has blamed the high lodging charges in hotels in the Federal Capital Territory (FCT) on the recent hike in electricity tariff.

Stating this in Abuja, the President of HOFA, Mrs Funmi Kazeem, said this has reduced the number of customers patronising hotels in Nigeria’s federal capital.

Following the hike in electricity players in the hospitality sector have had to grapple with high operating costs, reduction of investment and decreased competitiveness. 

“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 this challenge and other challenges in the sector is crucial to sustaining progress and promoting economic growth,” she said.

Commending the federal government for efforts to boost investments in the local tourism sector, the forum noted that challenges persist.

“In the tourism sector, there have been achievements such as increased investment, improved infrastructure, and successful marketing campaigns.

“However, challenges persist, including security concerns, economic challenges, infrastructure gaps, and limited marketing,” she added.