Emily Dawson
Thu, Aug 3, 2023 7:35 PM

Decline in Hotel Patronage: Fuel Subsidy Removal Impacts Hospitality Industry in Abuja

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Decline in Hotel Patronage: Fuel Subsidy Removal Impacts Hospitality Industry in Abuja
The Hotel Owners Forum Abuja (HOFA) has expressed concern over the decline in hotel patronage in Abuja. This decrease in customer numbers is attributed to the increased accommodation rates resulting from fuel subsidy removal. HOFA's President, Funmi Kazeem, has appealed to the government to review taxes downward to support the survival of the hospitality industry in the country. The article reflects on the impact of fuel subsidy removal on the sector and addresses the preference of customers to stay with relatives and friends instead of booking hotel accommodations.

ABUJA - The Hotel Owners Forum Abuja (HOFA) has decried low patronage of customers, saying they prefer staying with their relatives due to its new accommodation rate as a result of fuel subsidy removal.

President Funmi Kazeem said this earlier in the week.

Kazeem, said the removal of fuel subsidies by the Federal Government had made hotel owners increase their accommodation rates.

She appealed to the government to review taxes downward for the survival of the hospitality industry in the country.

According to her, patronage of hotel accommodation has declined because most of the customers now prefer staying with relatives and friends' houses when they come to the Federal Capital Territory, FCT.

Kazeem said: "Even if they come into town for events, they will prefer to stay with their relatives and friends than to stay in a hotel."

The Hotel Owners Forum Abuja (HOFA) has expressed concern over the decline in hotel patronage in Abuja. This decrease in customer numbers is attributed to the increased accommodation rates resulting from fuel subsidy removal.

Since the Federal Government removed fuel subsidies, hotel owners have been forced to raise their rates to cope with the higher costs of running their establishments. These increased accommodation rates have had a negative impact on the hospitality industry as customers now seek more affordable alternatives.

President Funmi Kazeem of HOFA has called on the government to review taxes downward to alleviate the burden on hotel owners and support the survival of the industry. Lower taxes would enable hotels to reduce their rates, making accommodation more affordable and attractive to potential customers.

The decline in hotel patronage is particularly noticeable in Abuja, where many visitors to the capital city now opt to stay with relatives or friends instead of booking hotel accommodations. Even individuals attending events or conferences are choosing to seek accommodation through personal networks rather than in hotels.

While staying with relatives and friends might provide a cost-saving option, it also has implications for the hospitality industry. Hotels play a significant role in generating employment, contributing to local economies, and offering a range of services and amenities that enhance the travel experience.

The decline in hotel patronage in Abuja not only affects hotel owners but also has a cascading effect on suppliers, service providers, and employees within the industry. The tourism and hospitality sectors are significant contributors to Nigeria's economy, and sustaining these sectors should be a priority.

By reviewing taxes downward, the government can take a proactive step in supporting the hospitality industry during these challenging times. Lower taxes would help reduce the financial burden on hotel owners and enable them to offer competitive rates without compromising on service quality.

The decline in hotel patronage due to fuel subsidy removal highlights the need for collaborative efforts between the government and industry stakeholders to find sustainable solutions. This could include exploring innovative marketing strategies, creating attractive tourism packages, and fostering partnerships with other sectors to boost travel and accommodation demand.

In conclusion, the removal of fuel subsidies has had a significant impact on the hospitality industry in Abuja. Hotel owners are faced with the challenge of declining patronage as customers opt to stay with relatives and friends to avoid the higher accommodation rates. It is imperative for the government to respond to the industry's plea and review taxes downward to support the survival and growth of the hospitality sector in Abuja.

Source of content: OOO News 2023-08-03 News

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