Hotel Owners Forum Abuja (HOFA) has cited the recent increase in electricity tariffs as a key factor behind the rising cost of lodging in the Federal Capital Territory (FCT).
HOFA President, Funmi Kazeem, told the the News Agency of Nigeria (NAN) in an interview that the higher electricity costs have significantly impacted the operational expenses of hotels, leading to elevated room rates.
Kazeem pointed out that the hospitality sector, which includes hotels, resorts, and other tourist facilities, has been severely affected by these increased operating costs.
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.
She said the tariff hike has also impacted the standard of living for many individuals across the country.
“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.”
Kazeem, however, lauded the President Bola Tinubu-led administration for its policies aimed at boosting economic growth through privatisation 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.
