Inflationary pressures in Nigeria’s tourism and hospitality sector have negatively impaired the recovery of the hotel industry, forcing many operators to shut down operations.
According to a recent report on the industry by the National Bureau of Statistics (NBS), inflation in the restaurants and hotels division hit 0.40 percent of Nigeria’s headline inflation rate, which rose to 32.70 percent in September.
Speaking on the development, the President of the Nigeria Hotel Association, Dr. Patrick Anyanwu, lamented that the hospitality sector is hit hard by high fuel costs and erratic electricity supply.
While stating that the situation has become unbearable, he called on the government to intervene in the industry to address the escalating cost of doing business.
According to Anyanwu, hoteliers’ challenges began in 2020 but have intensified under the current administration.
“You go to buy fuel, formerly you could manage fuel at N800/liter, but now it has gone up to N1,200/liter.
“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.