Major 4-star hotels operating in Rivers state are in trouble. The governor’s lack of a stimulus package to boost the hospitality sector and well-laid economic framework has now contributed to the fear of major investors pulling out from Rivers State, as many hotels are put up for sale on daily basis.
An investigation carried out by City People’s reporter revealed that in Port Harcourt GRA Phases 1,2 and 3 hotels in the area are now seeking potential buyers as their owners could no longer continue to run at a loss owing to poor patronage that could be traced to a bad economy and draconian administrative style of the Rivers State Governor which has negatively affected their businesses.
Here are the list of 4-star hotels in the Real estate market for sale:
De Edge Hotel with 100 rooms sitting inside 17-plots of land in the GRA Phase 3 area is going for asking price of N7.8 billion, Beverly Hills Hotel with 136 rooms, 17 Staff Rooms, 3-Industrial Kitchen and 2 Standby Sound-Proof electricity generating sets with exquisite Bush Bar and swimming pool could change hands on payment of N2.8 billion, while Le Meridien Hotel with 78 rooms situated on 6,040 square meters of land space is going for N10 billion. As if they are not enough, two other hotels in the Tombia Extension area of GRA are in the list of properties for sale.
Apart from the bad economic policies and lack of vision for the hospitality industry in the state and the recent happenings in the security sector, with obvious loss of lives and threat to property have increased the desire to disinvest. Failure in the cardinal responsibility of elected government officers on security has sent chilling fear to lodgers and other foreign investors coming to do business in the state.
The Gracious David West, the serial killer of females in hotels in Port Harcourt, the death of former Miss Lux Beauty Queen, Ibidun Ighodalo, inside one of the upward mobile hotels in Port Harcourt remain a negative narrative to prospective visitors to Port Harcourt as they are not sure of their safety should they lodge in hotels in the state. This, no doubt is a drain on hotel patronage.
The recent action of the state government, especially the demolition of hotels in Eleme town during the Coronavirus Pandemic lockdown period was again a minus to hospitality marketing in Rivers State earlier regarded a tourists haven as patrons are no longer impressed by the propaganda of the Rivers State Tourism Development Agency which many critics described as a smokescreen. In reality, nothing was said to be happening in the Tourism Development Agency in the state where the only beautification of several roundabouts with Flyover bridges and resurfacing of Ikwerre Road to Port Harcourt International Airport Omagwa will not lure potential investors to the Hospitality industry and reassure lodgers for their safety while staying in hotels in Rivers State.
The Governor, Nyesom Wike should introduce policies in the hospitality industry like his Lagos State counterpart Babajide Sanwo-Olu, who has provided N1 billion as a soft loan to Lagos State Hoteliers. He announced this in a town hall meeting with hotel owners under the aegis of Hotel Owners and Managers Association of Lagos-HOMAL with Chief Samuel Alabi as President of the group. For Lagos State example, the N1billion was support for cushioning the adverse effect of COVID-19 Pandemic Lockdown. Governor Sanwo-Olu announced the seed money during the 6th Lagos Corporate Assembly held at the State House Banquet Hall Alausa. According to the report, Governor Sanwo-Olu said the N1 billion was meant to bolster the hospitality industry by providing key operators in the Tourism business with Soft Loans to boost their capacity driving growth, which was domiciled in the Lagos State Employment Trust Fund-LSETF targeted for Micro, Small and Medium-Size Enterprises-MSME. This was done with the further collaboration of the Central Bank of Nigeria for funds availability to support the hospitality industry in Lagos State.
Rivers State commendation goes to Governor Wike for his intervention in boosting the private health sector with seed money in the form of Soft Loan he made available to Medical Doctors which should be extended to the hospitality industry to boost the economic base of the state.
In a situation where businessmen and women are not sure of their safety in hotels sends bad signals and leads, this poor patronage of hotels and loss of revenue to the government in the form of taxes and levies paid by the hospitality industry operators in Rivers State.
The nature of politics being played in Rivers State makes it difficult for development to thrive because should the economic stimulus be put in place, its management will only go to top party loyalists who will surely see it as patronage fees for their loyalty to the party, unlike in Lagos State where members of Small and Medium-size Enterprises Development Agency of Nigeria, SMEDAN, captains of industry and manufacturers irrespective of their political party affiliation and state of origin operate for the optimal benefit of the citizenry. Â
– EMEKA AMAEFULA
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