After weeks of reopening doors to guests, the Nigerian hospitality sector is still struggling to remain open. The sector, especially hotels in Lagos and Abuja, are faced with very low patronage; unprecedented in the history of hotel business, particularly in the second half of the year when business is expected to boom.
The sad development, which is blamed on the impact of Covid-19 pandemic, has discouraged some hotels, especially foreign brands from reopening as scanty occupancy hardly sustains business.
Currently, the average room occupancy rate is yet to hit 20 percent, the same level that made many hotels to shutdown even before the lockdown. Also, bookings and reservations have not been impressive since reopening as uncertainty trails the fight against the pandemic with people and even governments hoping for positive outcomes to plan ahead.
As well, many hotel managers had hoped at the reopening of their outfits weeks ago that occupancy would gradually improve from zero where it had been since the lockdown.
However, their hopes seemed dashed as the improvement has been too gradual.
Speaking on the development, Brian Efa, general manager, Ibom Hotel & Golf Resort, decried that the recovery has been very slow as his hotel cannot boast of 10 percent occupancy at the moment.
He noted further that meetings, incentives, conferences and events (MICE), which the hotel depends on are not happening like before due to restrictions on international flights, hence the low patronage.
In the same vein, Mandas Ushe, general manager of an Abuja-based boutique hotel, noted that he barely sustains 15 percent occupancy because government and corporate activities, which come with huge patronage for hotels in Abuja, have not resumed fully.
“At the moment, we are barely open with half capacity. This comes with huge challenge as same operating cost is deployed in servicing few guests in our hotel now”, Ushe said.
This goes for most international brands, which are barely open, yet incurring huge operating cost as guests are still reluctant to visit.
The likes of Radisson brands, some Marriott hotels, Hilton among others are bracing the tide and opening amid unprecedented low patronage, while a few outlets of some branded hotels are yet to open. But most indigenous hotels are open, and they face same lull in business like their foreign counterparts.
Also speaking on the development,trevor Ward, CEO, W Hospitality, noted that patronage might remain low for sometime as the recovery of the Nigerian hospitality sector is expected to be very slow, unlike other countries where the government did not order the shutdown of hotels during the lockdown.
Meanwhile, hospitality stakeholders are blaming the low patronage on the low purchasing power and harsh economic realities occasioned by the impact of the pandemic.
The stakeholders also noted that even guests who can afford luxury now are held back because of health and safety concerns.
Ushe explained that hotel customers know that hotels are open for business but are still reluctant to visit because of health and safety concerns in respect of the pandemic.
“Government has issued safety protocols for the sector, and hotels are further assuring of health and safety measures they put in place to safeguard customers, but guests are still skeptical. You don’t blame them because compliance has often been the issue in Nigeria”, Ushe said.
As Paul Murray, general manger, Bristol Palace Hotel, Kano, rightly pointed out, “It is of foremost importance to follow the Covid-19 protocols”. He stated that consistency and compliance with safety measures would finally win the guests in great numbers.
Aside fear over health and safety concerns, would-be guests are also held back because international flights, which bring over 60 percent guests for international brands, are yet to resume.
The flights are imperative because they enable business travelers and other guests to travel, connect and carry out business activities and corporate responsibilities.
“In Nigeria, we rely on air travel for our domestic and international guests, so without flights, no guests”, Ward explained.
As well, Efa is looking forward to the resumption of international flights for MICE activities to pick up, noting that “if there are no travels, hotel cannot make business”.
But as international flights resume in Nigeria on August 29, 2020, Ushe thinks that occupancy will not pick as most passengers coming or leaving to meet their families are those stranded since the lockdown and restriction on flights.
“Rather than depend on international guests, we should grow our domestic tourism like Kenya, where over 70 percent patronage come from domestic front. We should lower prices of domestic flights, encourage budget hotels, and discounts on star-rated ones to encourage more Nigerians to travel within and soar hotel occupancy by so doing”, Ademola Obembe, a tourism expert suggested.
But hospitality experts are warning hoteliers to brace up for tough time as recovery of the sector depends on the larger economy, which many fear may be heading for another recession if no proactive action is taking now by the government.
