Alhaji Olajide Sodunke is the president of the Ogun State chapter of the Hotel Association of Nigeria. In this interview with ADESOJI OYINLOLA, he discusses how government policies, such as ensuring adequate security of life and property, have impacted the hospitality industry. He also appeals to the government to clarify the differences between Value Added Tax and Consumption Tax.
How has your experience been running a hotel?
We started this business approximately 23 years ago. It’s a business that offers hospitality services to people who use our facilities for a fee. I believe it’s mutually beneficial to both the owner and our patrons. I have found that the hotel business needs continuous upgrading to satisfy the requirements of our guests. Therefore, it’s advisable to reinvest income generated from the business to meet the evolving needs of your clients.
As the president of the Ogun State chapter of the Hotel Association of Nigeria, what are the association’s goals?
The primary goal of any association is to protect the interests of its members, and our association is no different. We encourage members to take advantage of the benefits the association provides. Our aim is to foster cooperation among our members and to improve and raise the standards of the hotel industry. We also strive to ensure the safety of our guests and their property.
This means encouraging our members to guarantee the safety of guests, including their belongings, whenever they use our facilities. We also encourage our guests to be safety-conscious by adhering to our rules to ensure their well-being while they are with us. If guests have valuables, they should hand them over to the reception for safekeeping.
The association periodically organises seminars, conferences, and workshops to educate our members on how to run their businesses effectively.
What has your experience been since you became president of the association?
An election was held, and the current administration took office about a year ago. Since then, we’ve intensified our efforts to attract more members. It’s fair to say that the association was in its early stages when we took over. Our administration is the third since the association’s inception, so we recognised the need to make an immediate impact.
We have upgraded the secretariat to a high standard and provided it with adequate equipment to ensure its efficient operation. We have successfully encouraged members to attend meetings and are exploring the best ways to invest in the future to guarantee the association’s long-term continuity.
How has the association been affected by government policies?
It’s impossible to operate a hotel business without being subject to government regulations. We benefit from the facilities provided by the government and, in turn, contribute our share. As hoteliers, we are expected to pay taxes, including Value Added Tax, signage fees, personal income tax, and Pay As You Earn.
There are numerous taxes. The government has significantly improved the enabling environment for us to conduct our businesses. They have provided better roads, streetlights, and improved security services, in addition to creating a more conducive tourism environment that attracts people to our facilities.
Ogun State has numerous cultural festivals. How do these festivals affect your businesses?
There’s no doubt that festivals like Ojude-Oba, Lisabi Day, Orona Day, and the Drum Festival significantly increase our patronage. People travel from near and far for these festivals and utilize our facilities, thereby boosting our revenue generation. We always look forward to these festivals and make adequate preparations to accommodate the tourists, and the experience has always been very positive.
What are your expectations from the government? What can the government do to improve your business?
We urge the government to examine the issue of taxation. We need clearer definitions of the taxes. For instance, we are required to pay VAT and Consumption Tax simultaneously, and upon closer examination, there’s little difference between the two. We understand our responsibility to pay taxes, but we seek clarification on some of these taxes. We also implore the government to provide more social amenities, improve tourism, and provide adequate electricity to support our efforts to enhance hospitality services.
How is the security situation in the country affecting hotel businesses?
We are part of the broader population; therefore, we are affected by whatever impacts the country. While we appreciate the government’s efforts to ensure adequate security for the people, we are also implementing measures to ensure the smooth operation of our businesses.
Where do you envision your association in the near future?
We intend to purchase land to build our secretariat and acquire vehicles. We also want to take our members on international trips. We visited Ghana recently and plan to visit Dubai and South Africa as a group to gain firsthand experience of how they manage the hospitality industry in those countries.
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