Hotel, hospitality sector loses over N2bn in two days -Tourism expert

THE TWO CONSECU TIVE DAYS of the sitat-home order by the Indigenous People of Biafra(IPOB) which was observed in the South East region has cost the hotel and hospitality sector of Imo state over N2 billion, and this is worrisome, causing headache to investors and experts in this sector, Chika Ossai, a hospitality expert and facility manager, Full Moon Hotels, Owerri said.

The expert said that in the recent past, Imo state has faced one problem or the other due to the COVID-19 pandemic, insecurity that engulfed the state , the constant sit-at-home order and the almost three weeks government/ petrol tanker drivers’ association face-off which resulted to nearly three weeks petroleum scarcity in the state. Chika Ossai, noted that apart from the loss of over N2 billion revenue to the sector, the Southeast region has never had it so rough as this.

In his explanations, the hotels/ motels lost about N114 million per day, the Pubs and bars lost N950m daily while the eatery and cafeteria inclusive of mama put(road side food vendors lost N745 million per day, and the two days were unprecedented lockdown and stay-at-home in Imo state and also unprecedented in loss of revenue.

He recalled that, the first crippling blow that dealt on the industry was the Covid-19 pandemic, then came insecurity which caused a sharp drop in the inflow of people and activities as well as loss of revenue in the region, and since there was no improvement for such a long time on the security structure, the southeast became a no go area, he said.

“Owerri, the Imo state capital plays host to a lot of hotels including international brands and individually owned hotels with the required qualities as regards the hospitality industry. Infact, Owerri is the Las Vegas of Nigeria as far as hotels and night-life are concerned, because, it is a city with the most standard hotels and nite clubs in Nigeria”, he said.

As at today, aside the challenges of insecurity that brought about the decline in business for the hospitality industry, the sit-at-home order by the Indigenous People of Biafra that has almost come to stay in the Southeast is causing a gradual but steady grinding of business activities in the southeast.

It is like a spanner in the wheel of progress which has led to massive loss of businesses in the hotel and hospitality sector, occupancy rates have dropped drastically, events are been shifted or cancelled outrightly, trainings and seminars are called off or moved to other parts of the country where business environmental is conducive, he said.

Informing that it has caused a cut in salary, staff reduction in almost all the hotels, and the cost of operations are critically reviewed since guests and events are the bedrock of hospitality business.

“Right now the business is taking a nose dive these past months. I want to state clearly here that the sit-at-home order from where ever it is coming from is a tactical blunder and if not corrected on time will fizzle out majority of the businesses in the southeast and create more unemployment”, he said.