The recent hike in electricity rates, according to hotel owners, is a major contributing reason to the growing expense of staying in the Federal Capital Territory (FCT).
In an interview with the News Agency of Nigeria, HOFA President Mrs. Funmi Kazeem said that increased electricity costs have had a substantial effect on hotel operating costs, which has resulted in higher room rates.
Kazeem emphasized that these higher operational costs have had a significant negative impact on the hospitality industry, which encompasses hotels, resorts, and other tourist attractions.
She noted a reduction in customer patronage and a decline in investment within the sector, which has subsequently decreased its competitiveness and adversely affected the broader economy. Additionally, the tariff hike has impacted the standard of living for many individuals across the country.
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“The hike in electricity tariffs has significantly challenged our hotel business and our customers. Addressing these and other challenges is vital for sustaining progress and promoting economic growth.”
Despite these difficulties, Kazeem lauded the Bola Tinubu-led administration for its policies aimed at boosting economic growth through privatization and foreign investment.
She acknowledged achievements in the tourism sector, such as increased investment, improved infrastructure, and successful marketing campaigns, but emphasized that issues like security concerns, economic instability, infrastructure gaps, and limited marketing efforts still persist.
Some hotel guests interviewed also linked the high cost of lodging to the broader economic situation in the country, citing factors such as the exchange rate and general inflation.
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Businessman Mr. Clinton Brown noted that with the high costs of electricity and diesel, hotel owners have little choice but to pass these expenses on to their guests.
“Room rates, as well as the prices for food and drinks, have doubled compared to last year,” he explained, urging the Federal Government to implement policies to alleviate the broader economic hardship.
Another guest Obinna Chukwueku, observed that many hotels in the FCT are adjusting to the economic realities by increasing their rates to cope with the doubled operational costs. “Those without alternatives are in a difficult position. For those who can manage, it’s about finding a balance between cost and convenience,” he said.
Doris Ezekiel, a fashion designer, attributed the high lodging charges to the increased electricity tariffs and other operational costs, including higher taxes and regulatory fees.
She pointed out that many standard hotels in Abuja have doubled their lodging costs due to these financial pressures.
