Hospitality sector struggles with rising costs amid power, fuel challenges

BY TEMITOPE ADEBAYO

The President of the Hotel and Personal Services Senior Staff Association (HAPSSSA), Comrade Iyeh William Adegbe, has expressed concern over high cost of running hospitality business amidst epileptic electricity coupled with high cost of fuel and diesel across the country.

Just as he lamented against the systemic denial of unionism for workers in the industry.

As a result, the union is seeking collaborative effort with Federal Ministry of Labour and Employment to tackle anti-unionization employers, casualisation, contract staffing and outsourcing in the sector

According to him, most multinational hotel chains in Nigeria have introduced obnoxious practices targeting at weakening the strength of labour in hotel industries after Covid-19. They now resort to massive casualisation, outsourcing and contract form of employment, against decent workplace practice.

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“As for the economic situation presently, it is obvious that most hotels run on diesel because they cannot afford to keep customers in darkness. So, the hotel owners definitely experience surge in their expenditure on monthly bases coupled with the increment on electricity tariffs in the country.”

Further during a chat with LEADERSHIP in Lagos, Adegbe said that hoteliers are facing hard task in order to remain in business following the hard business environment across the country. Some of the managements have been taking steps to reduce costs and maximise their profits. Some have gone as far on embarking on reduction of the size of their rooms.

According to Adegbe, high cost of doing business though not peculiar to hospitality industry, but most owners of hotels are now devising survival strategies in order to maintsin the staff and reduce cost of running the business.

Stressing that the current economic challenge is affecting both the customers and the owners of hotels, he noted that it is causing the running of hotels huge amount whereby customers are paying.

Adegbe, therefore, noted that the harsh economic policies have further impoverished Nigerian workers and entire citizens.