By Saby Elemba
As individuals and businesses continue to face the biting effects of currency notes scarcity in Nigeria, George Uwah, the general manager of Lobic Meridian Hotels in Owerri has said that the cashless policy currently being pursued by the Central Bank of Nigeria (CBN) is adversely affecting the progress of the hotel and hospitality sector, especially in Imo State.
With the cashless policy and a currency notes crunch, Uwah said that Lobic Meridian developed and employed strategies to enable it to retain customers and guests in order to keep the business afloat.
According to him, “the strategies we have deployed are that number one, we have deployed payment options. We have the QR code, we have the POS terminals and we have the transfer system.
“And as the rate of occupancy has drastically reduced, what we have been able to do to bring up the revenue , is that we are now offering a 30 percent discount across all our services. This is to encourage our guests to continue patronising us.
“The situation in the hotel and hospitality industry is not funny in the sense that the cashless policy is adversely affecting the progress of hotels .
“This is in view of the fact that we are offering secondary products. What this means is that hotels are about secondary products because they are about leisure and entertainment, and in primary products we talk about food, shelter and clothing.”
Uwah said because there are alternatives to hotels, people are not always fixated with patronising hotels and entertainment centres, especially during this time of cashless policy and excruciating economic condition in the country.
The Lobic general manager further stated that for business to boom or thrive in the hotel and hospitality sector, there should be cash flowing in the system, but that the situation is not like that now. He has, therefore, advised that deposit money banks in the county should ensure that financial transfers are made seamless.
But the cashless policy has seriously impacted negatively on the economy of Imo State and has made it almost impossible for people to carry out transactions. It has also contributed negatively to the growth of the industry, Uwah explained.
He further disclosed that businesses are not flourishing any longer and that most hotels in the state are running at a loss because of the harsh prevailing economic situation.
“But the truth is that because the volume of business is low, we now sometimes run into losses as patronage has dropped.
Another issue is the insecurity that has almost paralysed the business in the state.
“But despite this we have not lowered our quality. Our quality has remained the same. What we have done is to offer some kind of discount to encourage customers and guests,” he said.
Uwah advised the general public that the cashless policy is a welcome development and that everybody must exercise patience as the country navigates through the processes as there will be light at the end of the tunnel .
