According to a story on the guardian newspaper of last week, despite the high number of hotels in Lagos metropolis, it remains the city with highest charges on hotel accommodation in Africa. The Lagos state hotel licensing office cites that there are about 2,500 registered hotels in the state. Now the guardian newspapers research finds out that five star hotels with branches in other African countries like Johannesburg, South Africa, Kenya, Nairobi, Maputo, Zambia, Lusaka, Dar-es-Salam, Tanzania, Mauritius, charge very much higher room rates in Lagos compared to their other African cities counterparts.
It may shock you, but the price difference at times is at 148%. Guardian further explains that the standard room for Southern Sun Ikoyi, Lagos costs ₦62,000 but in Johannesburg South Africa, the same room costs ₦25,000. In Sheraton Hotel Pretoria, South Africa, a diplomatic suit with a king size bed costs ₦149,000/night but the same in Lagos, Nigeria goes for ₦248,000 with a difference in 65 per cent.
Why do these hotels cost so much? A hotel sales and marketing manager says this is because many visitors prefer branded hotels, especially the ones their companies are associated with. He also says the prices are hiked since demand is higher than supply in peak periods hence that the market forces are to be blamed.
There is also an argument that the more expensive the hotel room is, the more standard their services would be and many travelers love standard. Now another factor is cost of operation, many hotel owners say this is the chief reason for the hotel rooms exorbitant prices. as the cost incurred in running a hospitality business in Nigeria is horribly high because of inefficient availability of basic amenities like power, water, as most of these hotels now provide their own power in form of diesel generators and of course dig their own wells.
More so, these hotel owners invest huge amounts of money in security which the government is presently failing to do and thus this further catapults the hotel rates. Many of these other African countries do not have the aforementioned problems. Presently Nigeria can only supply 4,000Mw, but that of South Africa is 45,700Mw. There is also the problem of multiple taxes and other charges like signboard fees, liquor license, tenement rate, water, electricity and parking bill.
Although it said that the labor costs in Nigeria is relatively cheap compared to that of other African countries, employee costs is also held as another reason for the exorbitant hotel room rates in Lagos.
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