Daily Champion (Lagos)

Nigeria: New Chelsea Hotel Risks Demolition As Hoteliers' Decry Multiple Taxes

Lagos — For contravening available town planning and development approval and control provisions in the Federal Capital Territory (FCT), emerging indications from the Federal Capital Development Authority (FCDA) show that the imposing New Chelsea Hotel sculptured at a strategic junction along the Herbert Macaulay Way may be bulldozed soon.

Among the reasons adduced by the authority include the fact that the hotel lacked ample parking space for vehicles which according to the federal agency lead to vehicular obstructions due to vehicular spill-over during event at the hotel.

But whereas the owners of the new hotel battles FCDA over the demolition controversy, operators in hospitality industry in Abuja have identified multiple and high taxes as the bane of the sub-sector.

Chief Tomi Akinbogun, the President of the Hotel Owners Forum (HOFA), in an interview contended that such taxes and charges had continued to kill businesses in the country rather than help them grow.

While advising the government to review its tax policy and administration if it was serious about attracting investment into the economy, HOFA boss called for the education of workers in the public sector, especially ministry officials, on how to handle and treat business interests in an economy that takes much from operators with fewer profit margins.

"So if government is serious about investment, it really has to educate ministry workers, they are civil servants and they are supposed to serve us.

"What we are saying is that there should not be any competition; we are private sector, we are the ones that can drive the economy efficiently," he said.

According to him, the major problem of the hospitality industry has been multiple and high taxes.

"For this year, we have noticed almost a 100 per cent to 120 per cent increase in tenement rates and we wonder why, because in the last two years we had meetings with the Abuja Municipal Area Council (AMAC) and we resolved that tenement rates be based yearly on the value of the property.

"But what we find out is that AMAC employed the services of a consultant, so the consultant just goes round the hotels and gives a rough estimate of the hotels.

"With this, they also make an estimate that AMAC should generate, say about N1 trillion or N3 trillion, and the hotels are now being charged based on these estimates," the HOFA president said.

He claimed that AMAC valued hotels as banks, a situation he described as unhealthy for the development of the industry, and called on the AMAC consultant to work with those engaged by the forum, Intercontinental Properties, to resolve the issue of high charges.

Akinbogun, however, noted that the issue of high charges was not peculiar to the municipal council, saying 'it is not only AMAC; charges by all government agencies are very high.

"We are not the only ones talking about high charges; the Manufacturers Association of Nigeria is also talking about it.

"When everybody is talking about bills, the government should be reasonable. Once you are an investor in Nigeria you are seen as a criminal.

"That is the way we are treated; we are not treated as if we are developing, employing people and assisting in the development of the country."

The HOFA president also noted that some government policies or pronouncement were never carried out and listed them to include the non-smoking restriction in public places and the issue of international passport as a requirement for lodging in hotels.


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