Mass sack looms in hospitality sector as operators lament neglect

Many workers in the hotel sector, said to be one of the major employers of labour in Nigeria, may lose their jobs, even as pay cuts may also be applied to keep those likely to survive the looming sack.

With the unfavourable business environment, foreign exchange crisis, sharp rise in the cost of power generation, and other gruelling challenges facing the economy, over 100,000 of these jobs may be hanging on a balance

Operators, who spoke with The Guardian, regretted that as other countries continue to earn huge revenue from tourism, Nigeria has consistently remained retrogressive without any hope of leverage.

They maintained that for the sector to record some reasonable level of growth that would impact on the nation’s gross domestic product (GDP), Nigeria must achieve a near perfect aviation industry.

A review of the financial performance of the Tourist Company of Nigeria Plc, showed its revenue for the financial year ended June 30, 2016, plummeting by 9.9 per cent to N2.9 billion.

The company said its casino operations revenue also nose-dived by 14 per cent. It’s revenue fell in both tables and slots games. The gross profit decreased by 21.0 per cent. Despite the fall in revenue, the casino’s operations contributed positively to the cash flows of the company.

The Managing Director of Golden Tulip (Airport Road Branch), Chinedu Obuike, in a telephone interview with The Guardian, revealed that many operators had already commenced massive retrenchment of workers to enable them meet operational costs, while others have a good number of their employees pencilled down for sack.

According to him, most of the five star hotels that record over 80 per cent occupancy rate in the past few years barely meet up to half of the figure now.

The President, National Association of Nigeria Travel Agencies (NANTA), Bankole Bernard, described the tourism sector as a major revenue generation base for the economy apart from oil, which Nigeria is yet to take advantage of.

Underscoring the importance of a buoyant aviation industry to the tourism sector, the NANTA boss said, “If government wants to grow tourism, the aviation sector must flourish. I have approached the government to ensure they focus on aviation, as this is intrinsically linked to tourism. Aviation complements tourism, and it is important that the government sees this.”

The Managing Director and Chief Executive Officer, Blueseasons Hotels & Suites Limited, Michael Anyanwu, at a recent press briefing in Lagos, had warned that over 100,000 workers may lose their jobs, if the macro-economic challenges bedevilling the economy persists.

He urged government to urgently address power generation issues in order to avert massive retrenchment.