According to a story on the guardian newspaper of last week, despite the
high number of hotels in Lagos metropolis, it remains the city with
highest charges on hotel accommodation in Africa. The Lagos state hotel
licensing office cites that there are about 2,500 registered hotels in
the state.
Now the guardian newspaper’s research finds out that five
star hotels with branches in other African countries like Johannesburg,
South Africa, Kenya, Nairobi, Maputo, Zambia, Lusaka, Da es Salam,
Tanzania, Mauritius, charge very much higher room rates in Lagos
compared to their other African cities counterparts.
It may shock
you, but the price difference at times is at 1,48%. Guardian further
explains that the standard room for Southern Sun Ikoyi, Lagos costs
₦62,000 but in Johannesburg South Africa, the same room costs ₦25,000.
In Sheraton Hotel Pretoria, South Africa, a diplomatic suit with a king
size bed costs ₦149,000/night but the same in Lagos, Nigeria goes for
₦248,000 with a difference in 65 per cent.
Why do these hotels
cost so much? A hotel sales and marketing manager says this is because
many visitors prefer branded hotels, especially the ones their companies
are associated with. He also says the prices are hiked since demand is
higher than supply in peak periods hence that the market forces are to
be blamed.
There is also an argument that the more expensive the
hotel room is, the more standard their services would be and many
travelers love standard. Now another factor is cost of operation, many
hotel owners say this is the chief reason for the hotel rooms exorbitant
prices. as the cost incurred in running a hospitality business in
Nigeria is horribly high because of inefficient availability of basic
amenities like power, water, as most of these hotels now provide their
own power in form of diesel generators and of course dig their own
wells.
More so, these hotel owners invest huge amounts of money
in security which the government is presently failing to do and thus
this further catapults the hotel rates. Many of these other African
countries do not have the aforementioned problems. Presently Nigeria can
only supply 4,000Mw, but that of South Africa is 45,700Mw. There is
also the problem of multiple taxes and other charges like signboard
fees, liquor license, tenement rate, water, electricity and parking
bill.
Although it said that the labor costs in Nigeria is
relatively cheap compared to that of other African countries, employee
costs is also held as another reason for the exorbitant hotel room rates
in Lagos.
see more: - http://thebusinessaim.com.ng/lagos-city-hotel-rates-are-the-highest-in-africa/
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