The Director General of the Ekiti State Bureau of Tourism Development, Ambassador Wale Ojo-Lanre, has outlined key strategies to help hoteliers navigate Nigeria’s challenging economic landscape.
Speaking at the 4th Conference of the South West Hotels Association of Nigeria held at Ife Grand Resort, Ile-Ife, Ojo-Lanre’s presentation, titled “Economic Downturn and Hoteliers’ Resistance: Strategies for Weathering Economic Downturns,” addressed the pressing issues facing the hospitality industry.
Ojo-Lanre noted that factors such as the COVID-19 pandemic, currency devaluation, and the recent removal of fuel subsidies have significantly impacted hotel occupancy rates, operational costs, and revenue.
“The hospitality industry not only serves as a cornerstone of employment and tourism but also plays a vital role in stimulating local economies,” Ojo-Lanre said. “However, with declining consumer spending and rising operational costs, we must adopt innovative strategies to maintain resilience and ensure sustainability.”
He highlighted several challenges confronting hoteliers, including reduced consumer spending, increasing vacancies, and lower profits. Rising operational costs due to inflation and fuel prices, he said, are straining resources and affecting profit margins. Additionally, the need to cut costs often leads to layoffs, which can compromise service quality and customer satisfaction.
To address these challenges, Ojo-Lanre proposed several actionable strategies for hoteliers:
Operational Efficiency: Streamlining costs through energy conservation and supplier negotiations.
Service Diversification: Crafting tailored packages and repurposing spaces for community events to create new revenue streams.
Digital Transformation: Enhancing online presence and booking platforms to attract tech-savvy customers.
Flexible Pricing: Implementing dynamic pricing models and off-peak promotions to stimulate business.
Ojo-Lanre also emphasized the importance of community engagement and partnerships, urging hotels to collaborate with local businesses to enrich guest experiences while boosting revenue.
He however called on hoteliers to embrace resilience and innovation. “Together, we can navigate the complexities of today’s economy and emerge stronger for the future,” Ojo-Lanre stated.
As Nigeria’s hospitality industry looks ahead, the strategies outlined at the conference provide a roadmap for hoteliers to withstand economic pressures and drive growth.
