Hospitality: Stakeholders rue multiple taxation, other charges

Multiple taxation, excessive consultancy levies and a host of other charges dominated discussions at a recent conference by stakeholders in the hospitality industry. The hoteliers said these were some of the bane of growth of the hospitality sector in the country. Recently, the Hoteliers Association Of Nigeria South-West Zone took their campaign to Lagos at a conference organised to tackle these and a host of other charges problems. EBERE CHIBUZOR, who was at the event, highlights efforts made by the group to encourage domestic tourism through hotel brands.

The Hoteliers Association Of Nigeria South-West Zone(HANSWZ) used the 2017 South West Hotel Conference held at Administrative Staff College of Nigeria in Badagry, Lagos, to describe multiple taxation, excessive consultancy levies and a host of other charges by the government as a bane to the growth of the hospitality sector in the country.

The Association came into existence four years ago to serve as a dependable association through which their voices could be heard.

In the conference, the association announced that it was embarking on the conference to share strategic insights on major challenges facing the sector and Nigeria, in spite of its contributions to the nation’s employment and the GDP.

With the theme, ‘Emerging Marketing Trends in Tourism and Hospitality sector of the Nigerian Economy,’ the conference attracted people from all walks of life.

According to the association, it is partnering with individuals and corporate citizens, including MTN Nigeria, Access Bank and many others to really get to encourage the sector. This is also in a bid to ensure it continues to create more jobs and brings development to the rural areas as it has a significant multiplier effect on other sector of the economy.

Speaking at the event, Chief Jerome Adoroh(JP) the association’s president, appealed to the government to consider employers of labour, adding that government should revisit the issue of multiple taxation from the hoteliers.

He said the Federal Government should use their position to stop the state from this multiple taxation. We have been discussing with the state government, but we will be writing to the government to channel our complaints to the House of Assembly. Multiple taxes could force them out of business in the country, if immediate solution was not provided.
Beyond these, the hoteliers said they opposed some of these bills because they could not even fathom what is meant for, as there are already tax for plenteous purposes hoteliers pay in the state.

Guest at the conference included Director General, Lagos Chamber Of Commerce & Industry, Mr. Muda Yusuf, General Manager, Audio Visual Right and Film in Nigeria, Mrs. Olubunmi Fawole, representative of Permanent Secretary, Lagos State Acting Commissioner of Tourism, Arts & Culture Mrs. Nosimot Adebimpe Akinsola, His Royal Majesty, De Wheno Aholu Menu Toyi 1, The Akran of Badagry Kingdom, among others.

While expressing the position of the association at the conference, Prince Femi Egbodofo, Deputy Chairman of the Association, said the hoteliers are ready to pay taxes that are meaningful, sensible and very reasonable.

Egbodofo said that, “Imagine the Federal Government promulgated a law and said that 50 per cent would be paid on food eat in the hotel, the room occupied and same government has the audacity to say they promulgated another law on the same material which we have been paid.
“In some states today, we have about 18 different taxes being paid; and this thing does not stop right there. According to him, a non -governmental agency has an arrangement through the same government to collect money from us. He said, adding that, “the hospitality sector contributes greatly to the nation’s growth through job creation and called for urgent federal government intervention to enable the hotels thrive”.

However, it is interesting to note that a cross- section of four- man panelists educated the hoteliers what frivolous taxes are all about .Daily Times reports that such was not the first time in the history the owners and staff go out of their way to make the stay during the conference a relaxing one.

Also part of the greatest challenges facing the sector is poor record , whereas, it is vital that hoteliers keep record of any thing that they sell, it was learnt.

A participant said, “That means comprehensive stock taking has to be done. Accountant can ensure that all financial detail are under the supervision of a competent auditor.”.

Earlier, Director General, Lagos Chamber Of Commerce & Industry, Mr. Muda Yusuf has expressed optimism over the state of tourism and hospitality industry in Nigeria, urging that for tourism and hospitality industries to thrive there have to be stronger collaboration between the media and the tourism and hospitality industry.

He said,”It is perception that defines the brand of an institution of a country and industry; and the media has a lot of role to play in shaping the perception of tourist either the domestic tourist or international tourists. Every country has it s challenges, but it is not a good thing that the only thing that made headlines are the bad things.

“You pick up a newspaper, the headlines are most often very negative, you switch on television the headlines are very often bad things. All those things adversely affect the growth of tourism and hospitality industry. We need to do a lot in the area of branding and the media has a big role to play on this”.
Yusu said, We have hospitality and tourism group, but we need to get them to be more active just as I was also telling them they need to be more visible, they need to more active to bring up issues affecting the industry because the louder you are the more attention you get. So, they should also be visible to push the industry forward.

Musibau Olanrewaju, Regional and SME sales Manger Enterprise Solutions Division, said, the partnership would help to reposition the nation’s tourism sector; and expressed optimism that the collaboration would enable them viewing the details about their assets afar off and to give them ultimate guide to business valuation.