Despite the huge and spread out number of hotels in Nigeria biggest city, Lagos, it still remains the city with highest charges on hotel
accommodation in Africa Research states that five-star hotels charge higher than their African
counterparts in South Africa, Kenya, Namibia, Zambia, Tanzania, Mauritius etc.
Despite the shocking fact, it would interest you to know tha Lagos hotels can sometimes charge ₦62,000 but in Johannesburg South Africa, the same room costs ₦25,000.
Sometimes in some Lagos hotels the price difference is about 148%, for example in Sheraton Hotel Pretoria, South Africa, a diplomatic suit costs ₦149,000/night but the same in Lagos goes for ₦248,000, a 65 per cent
difference.
The reason why such exuberant costs are accepted in Lagos is said to be because customers prefer branded hotels.
Lagos Hotels charges the highest in African Markets.
It is also said that prices are hiked since demand is higher than supply in peak periods hence that the market forces are to be blamed.
It is said in Lagos, the costlier the hotel room is, the more quality service they will offer, and this entices travelers and customers.
Now another reason for the insane cost of rooms are said to be the cost of operation in the state.
Research reveals that the cost of doing business in Nigeria is extremely high as these hotels have to produce for themselves, Power by Generators and basic water by digging and running their
own well.
These hotels also invest a lot of money in security due to the curse of armed robbers in the country, failing to do this could derail a hotels image in the state.
Many of these African nations don’t have this problems as high on their list of priorities, for example Nigeria can only supply a bit more than 4,000MW, while South Africa is at 45,700MW.
Then there is the tax problem, with multiple taxes and other charges like signboard fees, liquor license, tenement rate, water, electricity and parking bill.
With these options, you would think that Nigerian hotel labourers would make more than their African counterparts, but it isn’t so as labor costs in Nigeria is relatively cheap compared to that of
other African countries.
by ROTMANLUV 2023-07-08, 17:34
