The theme of the event, ‘The Emerging Market Trends in Tourism and Hospitality Sector of the Nigerian Economy’, took place at the Administrative Staff College of Nigeria (ASCON) Complex, Topo, Badagry, Lagos State.
The conference was the second edition, is sequel to the maiden edition held in 2015, in Abeokuta, Ogun State, was attended by delegates from in the South-West Nigeria.
In his address, Chief Jerome Adoroh, president, Hoteliers Association of Nigeria, South-West zone, disclosed that the fundamental problem confronting hoteliers is in relation to the taxation system.
Payments made to the federal, state and local government need to be review in order to avoid multiple taxation, which occur constantly in the process of payment. This has increased their cost of production.
He noted that the association is responsible for over 70,000 active members that came together as one body over four years ago to serve the interests of hoteliers and stakeholders in the hospitality sector.
He gave an assurance that the present executive would strive hard to protect the interests of the members and enhance unity among the members.
Acknowledging the important roles played by the tourism sector on the economy of the country, Jerome noted that the operators of hotel business in the country had demonstrated elastic response to the turbulent economic challenges faced by the country.
“The largest employers of labour in the country are the operators, owners and stakeholders in the tourism and hospitality sector, even in the face of limited power supply, multiple taxation, bad roads, exploitation in the hands of different organs and departments of the government, which have caused pain and sorrows in the hearts of the operators of the industry”. Joreme said.
He pleaded with all organs of government to have mercy on the operators.
“We cannot fight the government; we own it an immortal gratitude. However, we are afraid of lock and key factor,” the president concluded.
His Royal Majesty, De Wheno Aholu Menu Toyi 1, Akran of Badagry Kingdom, who was present at the conference, also received the executive of the association at his palace.
Prince Femi Egbodofo, deputy president of the association and the president of Ogun State chapter, noted that hoteliers’ relevance to the growth and development of the country’s economy cannot be underestimated. He added that excessive bills and taxes levied by the government will in the long run affect the economy negatively.
He said, “Recently the federal government promulgated a law that says 15 percent should be paid on rooms and foods used by our clients. The same government is still receiving money over the same conditions. This, to us, is double taxation which cannot continue. About 18 different taxes and levies are being paid to the government in some states in the South-West. Everyday, more are springing up.
“Hoteliers are not getting basic encouragement; we are the ones providing the roads, electricity and other social services. These are things that ordinarily should have been done by the government.
“The introduction of consultancy is a big problem to us, especially in the period when the economy is poor.
“We are ready to pay taxes that are reasonable and affordable by us, but not to be enslaved. Most of the operators of the industry are educated people, including retirees who are reasonable enough to know that they deserve to pay the taxes. We believe something is wrong. We are using the platform of the conference to appeal to the government to listen to the plights of the hoteliers,” the deputy president noted.
Egbodofo further noted that “the vast majority of the people in the hospitality sector did not have prior knowledge about the business they are into. This is one of the aims this kind of conference; as a tool to enlighten and educate the members of the association. The industry runs on 24-hour basis to render goods and services.
“The government must demonstrate commitment to harmonise the multiple taxation and eradicate unnecessary levies and taxes being imposed on hoteliers. We also appealing to them to ban the use of consultants in the collection of taxes. As an association, we are ready to work with the government officials to enforce the fulfilment of tax obligations by hoteliers, but government should be ready to harmonise all the various taxes and levies,” Egbodofo said.
Dr. Dapo Olaleye, general secretary to the association, noted that “several rigorous years in the medical sector made me to spread my wings to another sector that will be full of life and varieties; then here I am in the tourism and hospitality sector.
However, the taxes place a lot of burden on me. I’m not always happy seeing other members of the association fold up, all because of the increase in the costs of production.
“Government officials have created so much problem for the hospitality sector, such that the hotels that cater for the welfare of both local and international tourists are being plagued with unfriendly and harsh government policies.
“It is sad that majority of investors in the hotel business are pensioners and retired workers who are now over-burdened with huge taxes. Tax administrators have turned themselves into tin-gods to frustrate those people who have divested all they have laboured for into the tourism sector.”
Awosejo Funmilola, a representative of Gei8 Hotel, also noted that “hotels are having challenges with taxes, even in the face of proper documentation.”
Guest Speaker on the Day 1 of the conference, Mr Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry, encouraged the hoteliers to take advantage of the scientific and technological advancement in order to achieve efficiency and productivity in their rendering of services and goods in the hospitality sector. He also charged them to partner with the media in order to project their hospitality brands to the global community.
Guest Speaker on the Day 2 of the conference, Mr Ayo Adeyemi, a motivational speaker, charged hoteliers to diversify globally and work towards branding the hospitality sector.
Guest speaker on the Day 2 at the conference, Pastor Oladoyin, encourages the promotion of complimentary breakfast and uniformity in prices for holidays and weekend.
Oladoyin assured that “ the promotion of uniformity among hotels in reference to prices would help to develop the tourism sector, which will automatically help to promote the patronage of hospitality.
Guest speaker, Mr Ayo Adeyemi, a motivational speaker, charged the hoteliers to diversified globally and work towards branding the hospitality sector, vices and goods in the hospitality sector. He also charged them to partner with the media in order to project their hospitality brands to the global community.
“ In the competitive hospitality industry, setting your company apart is crucial to establishing a firm customer base. The name and logo have alot in common in the perception how people see the business
“the successful brands, personal identity work in relation to one’s vision ans mission in the competitive world of hospitality. The internet is of great help to the growth and development of the sector, therefore, the internet can help in many ways top achieve one’s dreams and goals in one’s business” he noted.
“if we are getting it wrong in leadership, are we also to get it wrong in our business?”, Adeyemi concluded.
“It is important to know that tourism and hospitality are twins, which means the two must grow together. It is hard to separate one from the other if truly tourism is better understood”, he noted.
At the Panel Session on Day three, anchored by Mr. Muyiwas Matuluko, a tax commentator, featured representatives of the Federal Inland Revenue Service (FIRS), and Prince Thomas Olofin, an Accountant and Chartered Tax Practitioner.
During the session, hoteliers were charged to cultivate the habit of keeping financial records as a means of reducing tax liabilities. The panelist affirmed that hoteliers pay more taxes and levies when services of qualified accountants are not employed.
According to Prince Olofin, excess tax charged on hotels by tax administrators often does not commensurate with the actual sales or turnover of the hotels. He charged the owners of hotels in the country to employ competence accountant and keep financial records to avoid double taxation. He however appealed to the government – state and federal- to reduce hoteliers tax burden in order to encourage them to pay.
Mr. Layi Abidoye, in another plenary session presented paper on “Productivity improvement in the time of recession in Nigeria” charged hoteliers to priotise and isolate business opportunities that have the highest probability of resulting in sales and improved profits.
The Association however honours Chief (Mrs) Folashade Tinubu-Ojo, as the Grand Matron of the Association.
Speaking on the uniqueness of Badagry city to the economy of Nigeria, the monarch noted that the city is home to the biggest land port in Nigeria, and will soon be the home of the biggest sea port in Africa.
He added that the Badagry community is now one of the oil producing communities in Nigeria. According to him, the choice of Badagry as the host of the hoteliers’ Conference reaffirms the community’s role as the grandeur of aquatic tourism in Africa.
On the third day of the conference the hoteliers converged on a tour started at the palace of the Akran of Badagry, De Wheno Aholu Menu-Toyi i for a visit, afterall they moved to appreciate historical tourism sites and artifacts of slavery spread across Badagry.
The places visited are District Officer’s Residence, Badagry Heritage Museum, Early Missionaries Cemetery, First storey Building in Nigeria, Agria Tree Monument, Mobee slave Relics Museum, Chief Williams Faremi Seriki Abbas compound among others.
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