Subsidy: Hotel owners decry low patronage, say customers now prefer staying with relatives

The Hotel Owners Forum Abuja (HOFA) has decried the low patronage of customers, saying customers now prefer staying with their relatives due to the new accommodation rates set due to fuel subsidy removal.

The president of HOFA, Funmi Kazeem, said this on Monday in an interview in Abuja.

Ms Kazeem said the removal of fuel subsidy by the federal government had caused hotel owners to increase their accommodation rates.

She appealed to the government to review taxes downward for the country’s hospitality industry’s survival.

According to her, patronage of hotel accommodations has declined because most customers now prefer staying at relatives’ or friends’ houses when they come to the Federal Capital Territory (FCT).

“As the fuel subsidy removal was announced, we did not have an option but to jack up our rate; even when we decided to increase our rate, our old guests did not agree to pay the new rate.’’

She said the Abuja Electricity Distribution Company (AEDC), which provides electricity, has also come up with a high tariff.

“We wrote to them that if they do this, they are giving us reason to look for alternative means of getting power; we are already looking for the opportunity of having solar energy.

“When we complain, they give excuses; I just pray our country will be better. These had affected their businesses,” Ms Kazeem said.

The president added that HOFA needed the government’s intervention to slow down most of its taxes as it struggled to recover from all the losses recorded during the COVID-19 pandemic.

“What we expect the government to do is create an enabling environment for the hospitality industry to grow and develop,’’ she said.


Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top