300 Percent Increase in Electricity Tariff Will Destroy Hospitality Business

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The Hotel Owners Forum Abuja (HOFA) has warned that the 300 per cent increase in electricity tariff for Band A customers will spell a doom for the hospitality industry.

Abuja — The Hotel Owners Forum Abuja has warned that the 300 per cent increase in electricity tariff for Band A customers will spell a doom for the hospitality industry.

HOFA President, Mrs Funmi Kazeem, warned the escalation in electricity tariff would kill hotel business in the FCT in a matter of a month given its implication for the industry's sustainability and growth. Kazeem said the increase in energy cost, places an immense strain on hospitality establishments, eroding profit margins, and hindering their ability to invest in essential upgrades, innovations and guest amenities.

Also, the Chairman the BOT HOFA, Chika Chejina, said all boutique hotels of 20 rooms that were hitherto billed N1million per month now pay on the average N3.5 million per month, while those of 40 rooms, previously charged N2 million monthly were now paying N7.5 million per month as electricity tariff.

 

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