• Monday, September 16, 2024
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‘The harsh economic reality is a blessing in disguise for hotels that know their onions’

‘The harsh economic reality is a blessing in disguise for hotels that know their onions’

Olugbenga Omotayo Sunday

With over 400 participants from 16 countries across the world and an array of seasoned speakers and facilitators, amid fruitful deliberations, the 2024 edition of the annual Hotel Managers Conference and Awards Africa (HMCA) lived up to expectations.

In this interview, Olugbenga Omotayo Sunday, CEO, Tojum Hospitality and convener of the conference, speaks to Obinna Emelike on the feats achieved in this year’s edition, especially improved skills and trends, industry feedback, service culture and offerings, expectations for next year’s edition and other related industry issues. Excerpt:

How has HMCA been since inception, and in your opinion, did HMCA live up to your expectations this year?

Since its inception, the Hotel Managers Conference & Awards Africa has been a platform for hotel managers and industry professionals to network, share best practices, and recognize excellence in hotel management. The conference has grown in reputation and attendance and has become a premier event in the hospitality industry in Africa.

Regarding this year’s edition, I can confidently say that the conference and awards met our expectations.

Collaborations and synergy is the new way of moving forward in today’s business world and we are excited about the acceptance from Africa. We need to do more. We need to continue the collaborations. We had speakers from Nigeria, Kenya, Uganda, Asia and the United Kingdom and special guest participants from the UK, Germany, Asia, Cameroun, Botswana, Ghana, Uganda and several others. The responses from the participants on this year’s event have been encouraging and inspiring. We are appreciative of our sponsors, partners and exhibitors for the values they brought to the event this year.

 

What were the major achievements this year?

One of the major achievements this year was that our budget surpassed the cumulative budgets of our past three editions, yet we were able to achieve it. Thanks to the grace of God and to the amazing Local Organizing Team (LOC). They worked tirelessly for 10 months to ensure that this year’s event was successful and it worked. Our target of participants was 400, but we surpassed that number. We targeted that at least individuals from 15 African countries would attend the event, but we surpassed it with a record 16 countries worldwide in attendance. For the first time, we were overwhelmed by the acceptance and attendance by the participants from Africa. Hotel Managers Conference & Awards have transcended Nigeria and I can tell you that we are now an African project. Let me mention that we had a hybrid session this year too, with people watching live from different parts of Nigeria and Africa.

This year’s edition had African spice to it, how did the participation and programme reflect its continental status?

The Hotel Managers Conference & Awards was envisioned as an African project from inception. We did not know how we were going to achieve that, but we believe in hard work and diligently doing our best. I am passionate about new media and content creation. So, we kept investing in social media and reaching out. Some people also got wind of what we are doing in Nigeria and reached out to us. We had speakers from several African countries. The African spice this year is very encouraging and has proven that Hotel Managers Conference & Awards Africa is truly an African project. We are looking forward to harnessing the achievements of this year for a bigger event in 2025 and beyond.

How has the feedback from the participants and industry stakeholders been?

Lola Ade-John, Minister of Tourism, was present at this event as the chief host. Lai Mohammed, the immediate past Minister of Information & Culture, was equally present, including Nkereuwem Onung, president of FTAN. Also, Folorunsho Folarin-Coker, DG, NTDC, was represented, even as officials of major tourism and hospitality organisations and associations were present at this year’s conference and awards.

The responses we have been receiving from the participants have been amazing. Participants and industry stakeholders continue to praise us for the crop of seasoned speakers and panelists that we assembled this year and the quality of information and skills they delivered. The speakers and panelists make up the core faculty that helped in achieving the theme of the conference. The conference and awards have enjoyed robust support of tourism stakeholders in Nigeria.

In a sincere assessment, has the hospitality industry been impacted and in what areas?

Customer satisfaction, creating memorable experiences for guests and maintaining standards consistently through very skilled and well motivated workforce are what standout the hospitality industry. All these aspects were deeply impacted and we saw through responses from the participants.

This year’s event attracted over 400 hotel managers in Victoria Island Lagos for an average of three days. They lodged on the island. About 200 participants flew into Lagos. Airlines made money. We visited tourist sites after the conference. We fed the crowd. Then quality knowledge and skills from proven, globally rated hospitality experts were dished out to hotel managers in order to impact and transform the hospitality industry in Nigeria and Africa.

Definitely, it is obvious that all aspects of the hospitality value chain were impacted through the conference and awards 2024.

Considering the economic realities, how is the hospitality industry fairing today?

Like every other sector going through challenges as a result of the current economic issues in the country, the hospitality industry is equally affected. But the challenges have become the dividing line, separating competent hotels from the rest. The limited guests patronising hospitality facilities, more than ever before, have become more aware and choosy when it comes to offerings in terms of quality services and values.

You see guests checking out of hotels because of its lack of standards, and paying more in facilities that offer them value for money services.

So, the economic reality is a blessing in disguise to hotels that know their onions.

Many still believe that the Nigerian hotel market is overpriced, do you think so and how can the issue be addressed?

This argument has been on for a while now. It stands true, especially in the light of the current economic realities. Some of the reasons Nigerian hotels are overpriced include the fact that they face high costs for electricity, water, and security, which are often not provided by the government. These costs are passed on to customers. There is also the issue that Nigeria is a popular destination for business and leisure travelers, driving up demand and prices. We also know that several hotels often import furniture, bedding, and other supplies, which can be expensive due to import duties and taxes.

Hotels in Nigeria may charge more due to the need for enhanced security measures, such as armed guards and surveillance systems. Then, also there is the fact that hotels in Nigeria are subject to various taxes and regulations, which can increase their costs and lead to higher prices. In addition, the Naira has experienced fluctuations in value, affecting hotel operational costs and pricing. Moreover, some hotels in Nigeria offer high-end services and amenities, justifying higher prices. Some hotels in Nigeria enjoy being in prime locations, such as city centers or tourist areas, and they charge more due to their desirable locations. Lastly, hotels aim to make profit, and the Nigerian hotel industry is no exception. Prices may be set to ensure a certain level of profitability and to remain a viable business.

I believe the situation is not hopeless. Overpricing of hotels in Nigeria would be drastically reduced, though it would take time, but definitely, it can be done. It would start by encouraging new hotels and accommodations to enter the market. Their entrance can increase competition, which can help drive prices down. Government would play a role for this to be achieved through incentives like tax holiday, investment in tourism infrastructure, and streamlined licensing processes.

There is the urgent need to establish and enforce price controls or regulations that can help prevent hotels from charging exorbitant rates. The Nigerian government can set up a regulatory body to monitor hotel prices and ensure they are fair and transparent. Also, promotion of alternative accommodation options like Airbnb, guesthouses and hostels should be encouraged. These would provide travelers with more affordable choices; reduce their reliance on hotels and pressure on hotels to adjust their prices. This can be achieved through targeted marketing campaigns and investments in digital platforms.

We also have few women hotel general managers, are you looking to address that with the conference?

This has remained a concern for me as a hospitality professional. The situation is not hopeless as there are a number of things that if done, the situation would improve tremendously. Interestingly, we activated an aspect of a process that helps in building and preparing women for such leadership roles. It is the mentorship and training programme because the two are core to the vision and purpose of the conference and awards. Also, such programmes will provide training and development opportunities focused on leadership skills, operational management, and industry-specific knowledge to help women build confidence and gain the necessary expertise to advance to general manager roles.

There is also a need to implement the Diversity, Equity, and Inclusion (DEI) initiatives within hospitality organisations to create a more inclusive culture. This can include unconscious bias training, diversity recruitment strategies, and policies supporting work-life balance, such as flexible scheduling and parental leave. By fostering a more inclusive environment, women will more likely thrive and advance in their careers. There is the need for hotel management to create opportunities for women to network and build relationships with industry leaders and peers. This can include women-focused industry events, conferences, and professional organisations. Additionally, hospitality organisations can establish clear career advancement pathways and provide opportunities for women to take on leadership roles, such as assistant general manager or department head positions, to prepare them for general manager roles. If these strategies are implemented, the hospitality industry in Nigeria can work towards increasing the representation of women in hotel general manager positions.

What innovations are we expecting in the 2025 edition?

This year’s event in Lagos has been a huge success for us, as it exceeded the previous editions. Right now, we have started planning towards the 2025 edition. By September ending, we would officially unveil the host city and host hotel. We are already looking to take our engagement with participants at a higher level while we look to ensure that our sponsors would have more personalized engagement and enhanced successes. So, for the 2025 edition, we hope to attain and utilize AI-powered event technology to offer personalized agendas, session recommendations, and networking suggestions tailored to each participant’s interests and preferences.

We would also be building on the Immersive Technology Integration we introduced in our event this year with Virtual Reality (VR), Augmented Reality (AR), or Mixed Reality (MR) to enhance the learning experience, including virtual hotel tours, interactive training sessions and immersive presentations.

We hope to add a dedicated showcase or exhibition highlighting eco-friendly solutions, sustainable practices, and innovative green technologies for hotels, allowing participants to explore and implement environmentally responsible practices. We would also add a dedicated hub or session focused on data analytics and insights, providing hotel managers with actionable intelligence on industry trends, customer behavior, and operational optimization, including live data visualizations, expert panels, or workshops on data-driven decision-making. For the Hotel Managers Conference & Awards 2025, we might introduce an innovation pitch competition where startups, technology providers, or hotel managers can showcase novel solutions, products, or services that address specific industry challenges, with potential investment or partnership opportunities. We aim to get these innovations to build upon the success of the 2024 edition, offering an even more engaging, informative, and forward-thinking experience for hotel managers and industry professionals.

LG Electronics has always been there for you, what is the special relationship like?

The ‘Special Relationship’ Hotel Managers Conference & Awards Africa has enjoyed with LG Electronics Nigeria Limited is that the company was the headline sponsor of the Hotel Managers Conference & Awards Africa Lagos 2024, demonstrating its strong commitment to the event and the luxury hospitality industry. This year’s event was the second consecutive year LG Electronics has sponsored the event, following a successful collaboration in the 2023 edition, highlighting the company’s ongoing support and partnership. It is important to note that LG Electronics’ sponsorship of the Hotel Managers Conference & Awards Africa aligns with its values and commitment to eco-friendly initiatives, indicating a shared vision and goals with the event organisers and participants.