Rédaction Africa Links 24 with Agency Report
Published on 2024-02-23 20:34:24
Hotel operators in Enugu State are facing severe challenges that are negatively impacting their businesses. These challenges include multiple taxation and epileptic power supply which are significantly affecting their financial viability and operational effectiveness. In interviews with the News Agency of Nigeria, operators highlighted issues such as high taxes, scarcity of water, insecurity, and power outages as major obstacles to running successful hotel businesses in Enugu.
One operator, Edwin Madugba, pointed out that hotels heavily rely on power supply to run their operations, and the cost of running generators constantly is exorbitant. He mentioned that diesel prices have risen significantly, making it difficult for hotels to generate revenue to cover operational costs. Additionally, he mentioned the burden of multiple taxes levied by different government agencies, including waste management, local councils, and health services, which are placing a heavy financial strain on hotel operators. These taxes amount to exorbitant amounts, ranging from N500,000 to N1 million, in a challenging economic environment.
Another operator expressed concerns about the impact of insecurity on the state’s tourism industry. He noted that the government’s efforts to improve security have not been effective in attracting visitors from other parts of the country for events like weddings and conferences. The rise in taxes, including the introduction of new taxes like the purchase tax, has further burdened hotels and deterred potential customers. Water scarcity was also highlighted as a critical issue, with the cost of purchasing water for hotel operations being prohibitive.
In response to these challenges, the Enugu State government has clarified that the taxes imposed on hotels are not multiple but are part of the state’s consumption tax policy. The government explained that the purchase tax is meant to be paid by customers and not hotels directly, alleviating some financial burden on operators. Additionally, the government reassured that efforts are being made to address the water scarcity issue by improving water distribution infrastructure in the state.
Despite the government’s response, hotel operators are still facing significant challenges in running their businesses in Enugu. The combination of high taxes, insecurity, power outages, and water scarcity is severely impacting their profitability and operational efficiency. Operators are calling on the government to reduce taxes, improve security, and address critical infrastructure issues to enhance the business environment for hotels in the state.
In conclusion, the plight of hotel operators in Enugu State highlights the importance of addressing the challenges facing the hospitality industry. By reducing taxes, improving security, and addressing critical infrastructure issues, the government can create a more conducive business environment for hotels to thrive and contribute to the state’s economy. Collaborative efforts between the government and private sector stakeholders are essential to overcoming these challenges and fostering sustainable growth in the tourism sector in Enugu State.
Read the original article on Premium Times
