DAVOS 2014 and HOSPITALITY

While the French president was splitting with his wife, the Nigerian local football team was making a remarkable comeback in South Africa, and the demonstration in Ukraine was getting to a fever pitch elites in political and business circles around the world were assembling in Davos, Switzerland for different reasons to discuss common agenda at the world economic summit. On top of the agenda of the Davos summit is not the Syrian war or the attendant unprecedented refugee issue but serious issues like climate change, resource security and sustainability, environment and health and so on. The Nigerian delegation led by the President included the big wigs in both the public and private sector may not have an agenda of our own to push at the summit but I think income gap and unemployment is an agenda on the world table that is worth discussing at that level.

Economists will be quick to tell you that income gap and unemployment is of world concern and not a local issue plaguing only our country. While it is true that unemployment has a global coverage, what is also true is that different countries have different symptoms for this economic malaise and often manifest variety of economic consequences. Just as income gap is an economic index that tells a lot of stories about the relationship between the rich and the masses, so also is the danger inherent in carpet discussion of unemployment among the developed countries and the third world. Nigeria for example double ratio in unemployment isn’t down to lending rates, economic policies downturn or ineffective educational sector but corruption. For a country that has budgeted 80% of her income on recurrent expenditure this year; and leads other nations of the world as the most corrupt human settlement, it will take more than a fanciful attendance at the world economic forum to cut the widening gap between the haves and have-nots and significantly reduce unemployment.

In the local hospitality industry, the staff turnover is high and so is rate of recycled employees. Hoteliers buckling under the heavy burden of running expenses in connivance with some consultants take employees through a slave like working arrangement. Employees in desperation often agree to work under unworkable terms and conditions. Most hotels hardly run the 3 hourly shifts that guarantee the mandatory 8 hours daily for the simple reason that they need more staff to support such standard service. To the hotel owners, more staff means more operational costs that cut into profit and thereby fail to see the advantage from the guests’ perspective. The hospitality industry is understaffed and also in dire need of competent professionals.

As a micro issue hospitality industry may not get mentioned at Davos 2014, but as a part of the larger picture the government must take a serious look at this key industry in for two reasons. The aggressive push for foreign investors must match not only the right infrastructures but also our ability to competently host the investors when they arrive. Secondly, government is yet to see the potential in this industry and therefore neglect it in favour of other industries like manufacturing, mining and oil and gas. Nigerian delegates in the safety and comfort of their hotel rooms in Davos should ruminate over matters that are peculiar to our economy first, and treat general agenda of the summit that has no direct relevance on our people like room service menu.