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Hospitality industry still in recession – Olayemi

On the effect of the economy on the  hospitality industry It is really impacting negatively on business, the economy keeps going down. The government recently claimed that we are out of recession, but we are really not yet. The simple way to know that we are still not fine yet, is to realise that not many foreigners come around. In hotel of this standard (Banex), in one month, we would hardly receive a foreign guest. They are still scared of bringing in new investments to the country. Before now, they were trooping in daily for business or seminars  in Lagos, Port Harcourt or  religious engagements and other purposes. Again, we can hardly get 30 to 40 per cent occupancy, compared to between 70 and 90 per cent that we were recording before early 2015. Interestingly, we present a clear layman’s way of assessing an economy, because, we are the ones receiving the foreigners/ investors once they leave the airport after they arrive in the country.   On  effects of  hoteliers preferring   foreign managers and consultants in hotel management Yes, most Nigerian hotels prefer engaging foreign consultants and managers, such as Protea, Marriott and Hilton, among others. We have good local consultants and managers, but hotel owners are not willing to engage local managers, may be, because they feel that can earn them a big name and a high standard. We have Nanet as the most popular local brand, but it is not growing as the foreign brands are doing in the country. Unfortunately, this is leading to billions of naira in capital flight annually and it is very bad for a developing country like ours to lose such huge amount as capital flight to countries that are already developed. Actually, there’s nothing these foreign brands are doing that we cannot do. Thank God, this is not much a technology-driven industry; it is about rendering of services and being creative. The technology angle of it is the area of facilities. Hospitality is mainly about services. Now, a number of hotels are engaging foreigners as Guest Service Agents (front desk officers), but that is going too far. You can see now that in some of big hotels, you find Chinese as GSAs, but they cannot even speak English as we do. What expertise are they bringing in? What does a front desk officer do, other than to receive bookings, receive the guests and check them in; document their details and check them out when they are leaving, using the help of a hotel services software? The percentage of expatriates working in Nigerian hotels is around six per cent, but where the problem is really, is that they are heavily paid. In most cases, they are overpaid and the weight of their payment is felt by the local staff who must now receive very small salary, because the hotel has paid so much to the expatriates. On  how  payment of staff affect standard of a hotel In every industry, payment of workers is a major determinant of motivation and the more workers are motivated, the more productivity they are likely to yield. In this industry, ownership always wants to maximise profit, which ought to be, but in most cases, this goal is overshot, leading to little salary, with the staff looking for other means to help themselves. This leads to pilferage and other forms of stealing. When staff is paid well, they will be happy and this has the good impact of improving on their happiness and approach to service and to guests. This is very important in the industry. Hotels owned and managed by one-man and not branded are big offenders here and this lowers their standard of service. Unfortunately, this class of hotels constitutes about 90 per cent of hotels in the country.   Related ‘Uncoordinated multiple tax system threatens business’ November 20, 2017 Nigeria has huge e-commerce opportunity for tourism — Jumia Travel June 23, 2017 How hospitality schools can boost our foreign exchange January 24, 2018 UROWAYINO WARAMI View all posts by Urowayino Warami → PREVIOUS POST YOUR LUCK TODAY NEXT POST Air Peace fixes Feb 19 for Freetown, Banjul, Dakar launch Disclaimer Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.

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