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THE
CHALLENGES OF HOTEL BUSINESS
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The
hospitality industry is a ubiquitous one which spans hotels, bars, restaurants,
theme parks and a host of other related businesses. Globally, it is a money
spinning industry with billions of dollars to its credit even though in this
part of the world, we are still grappling with putting the industry on the
right pedestal so as to wholly benefit like other countries. Just like any
other business running in Nigeria, there are areas of concentration,
accommodation and restaurants which seemingly, is the ‘honey pot’ for
practitioners in Nigeria.
In recent
times, the Nigerian economy has witnessed tremendous ‘growth’ in the
hospitality industry leading to the emergence of hotels, fast food restaurant
chains, and night clubs and cruise lines. These positive trends in no small
measure are clearly helping to re-define the face of the hospitality industry
in Nigeria. Information on the street shows that the industry is booming.
Nonetheless, the writer believes every Tom, Dick and Harry with adequate funds,
is investing into the business with limited knowledge of the expertise required
to run such business. Most of them forget that the industry requires investors
that are aware of the fact that investment in this area requires long term
commitment. Hence, they expect returns as soon as possible at the peril of
their poorly remunerated staff.
The
hospitality industry in Nigeria is variegated depending on the location. Some
of the outfits found in big cities boast of ‘reasonably’ high quality of
service like Dansaky Hotel and Suites, Ifako Ijaye, Lagos State while those in
the outskirts offer a lower standard. It is therefore not surprising that since
the industry has become an ‘all comers affair’, there is in reality, no true
classification of restaurants and hotels as obtainable in other countries.
Consequently, most hotels have taken a bold step of prescribing their own
grading leading to confusion amongst their clientele.
The Nigerian
hospitality industry is faced with a myriad of challenges ranging from poor
energy supply and insecurity to misconstrued internal perception, cynical
global perspicacity, flawed hotel classification, poor customer service, little
or no standardisation in operations, inconsistent regulatory environment and
skilled labour shortages caused by a few entrepreneurs with little knowledge of
the workings of the industry who hijack the process to perpetuate plans for
their own personal aggrandisement Chukwudi Njoku (2015).
Indeed, the
industry operates in a country whose growth rate is estimated at about 7.4% per
annum. The challenges cascades from the ineffective top echelon in government
down to the least of employees in the industry. Arguably, the industry has not
recorded much progress in terms of achievements from its past precedence.
Notwithstanding, more than ever before, it has become more lucrative depending
on which side of the divide you find yourself i.e. employer or employee.
The world
over, the hospitality industry has provided high yield in returns on
investments. Whether or not this has trickled down to the employees is a story
for another day. Not long ago staff of about three ‘self-acclaimed’
international hotels embarked on a strike in Lagos State which disrupted the
operations of the hotels. According to them, this was owing to the poor working
environment and employee packages of these organisations, although their
employers were not in agreement with these claims.
The Nigerian
market has seen an influx of international brands. However, this is still not
reflected in the quality of services rendered. They seem to have fallen into
the abyss of ideological quagmire by forgetting to recognise the fact that the
industry thrives on service. Take away the services from the hospitality
industry then there is nothing to build on. Even in Japan, where plans are
ongoing to replace humans with robots. Practitioners have asked if robots will
be as intelligent as humans. Others have tagged it as klutzy according to the
Guardian UK particularly because humans still outperform robots in terms of
dexterity on the job and balance. Although the hotels in Nigeria offer
different services to all classes of customers yet they suffer from a culture
that is alien to supporting good customer service. Indeed, it is a difficult
time to be a stakeholder in the industry but in all, there is always light at
the end of the tunnel. It is against this background that the study seeks to
examine the challenges of hotel business in Lagos State by using Dansaky Hotel
and Suites, Ifako Ijaye, Lagos State as a case study.
1.2 Statement of the Problem
The
businessman who fails does not know himself, does not know his market, does not
know his business and does not know what is going on around him. Conceivable,
everyone wants to succeed in his personal, his social and his economic goals
but very few do. The key to success is not the wish for the desire to be
successful. It is easy for anyone to wish for a million dollars in business,
but to succeed, the individual needs many things. Above all, for the need to be
a definite goal there must be energy, drive, and the plan to work for it and
the recruitment of people dedicated to the same goals. Many people of course
settle for less (Campbell, 1993).
Anything can indicate an economic need.
The need may be for better or different food, faster service, new convenience,
increased status, or a new product. The only way to prosper is to think, not
only to see the various facts, but to understand each fact independently to
understand the significance when the facts are put together, and to understand
the significance, scope, magnitude, complexity, and completeness of this
relationship. Disregard an individual’s potential ability in resolving complex
problems of food quality, service, atmosphere, price and competition and look
only at this dynamic relationship between emotion and success. However, can
anyone succeed who is bored, indifferent, lazy, stubborn, and in-service? How
far can the aggressive, crude, tasteless, impulsive, arrogant, and hostile
individual climb?
Another major cause for business
failure is the lack of detailed understanding and knowledge of the product.
Although the inability to plan, direct, and control the various functional
areas associated with food is an extremely serious management deficiency. Also,
the failure to really understand the nature of the product sold can be equally
catastrophic. The potential restaurant operator is exposed to two major
problems that he definitely will not encounter if he elects to enter any other
field of endeavour. The two specific problems he must resolve are the perish
ability of food and the control of inventory.
Most people are aware that food spoils.
However, they don’t understand how serious this fact can be. Spoilage begins
from the moment a food item is ordered and continues through receiving, dry and
refrigerated storage, preparation, production and service, on the delivery
truck, food items are thawed, bumped, mishandled, bruised, or robbed off their
freshness. In other functional areas, frozen food spoils because it is not
stored immediately. Milk source, banana over-ripen, lobsters die, fish rotten,
meat dehydrates, lettuce wits, oil becomes rancid, food is cooked too long,
high temperature, too early , and the list is endless (Mintzberg, 1975).
Therefore, this study will examine the challenges of hotel business in Lagos
State by using Dansaky Hotel and Suites, Ifako Ijaye, Lagos State as a case
study.
1.3 Research Objectives
The study
has both general objective and specific objectives. The general objective or
main objective of this study is to examine the challenges of hotel business in
Lagos State by using Dansaky Hotel and Suites, Ifako Ijaye, Lagos State as a
case study. The specific objectives are:
i) To examine the challenges facing
hospitality industry in Lagos State
ii) To examine the factors responsible
for slow growth of hospitality industry in the study area
iii) To determine the factors that can
enhance the growth of hospitality industry in Lagos State
iv) To proffer possible solutions to the
development of hospitality industry in Lagos State
1.4 Research Questions
The following
are some of the questions which this study intends to answer:
i) What are the challenges facing
hospitality industry in Lagos State?
ii) What are the factors responsible for
slow growth of hospitality industry in the study area?
iii) What are the factors that can enhance
the growth of hospitality industry in Lagos State?
iv) What are the possible solutions to the
development of hospitality industry in Lagos State?
1.5 Research Hypotheses
The
following will be the research hypotheses to be tested for this study
i) There is no significant influence
on the challenges facing hotels in Lagos and their performance.
ii) There is no significant correlation
between organizational policy and its performance.
1.6 Significance of the Study
This study
focuses on the assessment of hotels in Lagos. This will enhance the development
of hotels since they act as tourist attraction centres. The overall
consideration of the significance of the study will be summarized in the
following statements. It will also help to fill the gap in the literature in
the areas of hospitality and tourism. It become not a primary but a secondary
source of information for researchers, academicians and practitioners, It as
well serve as guiding documents for policy makers for the adaption, formulation
and implementation of a genuine urban development strategies, efficient urban
management, migration policy, through hotel establishment and so on. Lastly, it
will give insight for the town administrators about the existing and emerging
socio-economic challenge of the migrants in relation with the socioeconomic
services provided by the town administration
1.7 Scope of the Study
This project
is designed to target waiters, reception staff, and room maids in small scale
Hotel in Adamawa State. However, Dansaky Hotel and Suites, Ifako Ijaye, Lagos
State will be our focus as case study. Also the study will be limited to the
personnel in the food and beverage service, reception and housekeeping
departments.
1.8 Limitation of the Study
This
research was faced by limited research materials as the research material
available to the researcher was insufficient, thereby limiting the study. Also,
time was another limitation for this study as the time frame allocated to the
study did not enhance wider coverage as the researcher had to combine other
academic activities and examinations with the study. Organizational privacy
also limited this study because there was limited access to the selected
auditing firm makes it difficult to get all the necessary and required
information concerning the activities
1.9 Definition of Terms
The
following terms were used in the course of this study:
Challenges:
the situation of being faced with something that needs great mental or physical
effort in order to be done successfully and therefore tests a person's ability.
Hospitality:
the friendly and generous reception and entertainment of guests, visitors, or
strangers.
Tourism: is
travel for pleasure or business; also the theory and practice of touring, the
business of attracting, accommodating, and entertaining tourists, and the
business of operating tours.
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