JUDGING HOTELS & TOURISM

Seventy -two hours ago; when majority of us were getting our 'aso ebi' ready for the weekend, the Supreme Court delivered a landmark judgment on the raging battle between the Federal government as represented by NTDC and Lagos state government over the soul of the hospitality industry . In Nigeria, all judgments are landmark. The Supreme Court panel led by Justice Suleiman Galadima by the judgment stripped Nigeria Tourism Development Commission of her powers and handed authority to license and grade hotel establishment to the state. By this judgment, Hotel licensing law of Lagos State (as amended) and Hotel Occupancy and Consumption stands validated while the irregular sections of the NTDC Act is rendered ultra vires. This piece will dispassionately attempt to assess the grass on which these two elephants just fought over and for.

First, let us take a look at the gladiators. In his swift response to the judgment, the Lagos State Commissioner for Tourism and Intergovernmental relations while commending the judgment also declared a fatwa on the indiscriminate establishment of hotels in the state. In similar vein, those who use hotels and event centers will sooner or later be expected to pay charges on facilities and purchases on account of this judgment. As at the time of writing this report, the NTDC is yet to react to the judgment not that it mattered anyway.

To the owners of hotels, it is still a long way to go in this journey laden with mine of policies. While the State basks in the euphoria of the judgment that seems to eradicate multiplicity of taxation where owner was hitherto saddled with, it may be unwise for the owners to start popping champagne. The NTDC loss in this regard appears to be the local government gain. If the local government has not visited your hotel for some funny municipal taxes, it's only a matter of time. Its however not all sad tales as I hope that this judgment will at least curb the issue of conflicting regulations in the industry in particular, and reinforce the tenets of federalism in the country in general. Lagos State empowered by the judgement and inspired by their ambition of wooing investors to the state will soon be enforcing stiffer registration fees for hotels and introducing maintenance charges in the industry. By the time i finished boring you with this article, a new tariff would have been on the table of the State executive council for delivery to the State house of Assembly. As landmark judgment goes, this leaves a sour taste in the mouth!

As for hotel consultants, it’s time to get creative and proactive. We must be involved both as lobbyists and stakeholders in this battle against state encroachment into our industry. The battle is of the owners but we must participate for our guests' sake. As for me, I compete with myself and collaborate with others.

Patrick Adegbamigbe

Hospitality Consultant

080 57736980