Taxes, levies, others top discourse, as Lagos MDAs meet T&H operators

[By VICTOR NZE]

Factors militating against an ideal working environment, relationship and understanding between regulators, policy formulators, on one hand, and practitioners in the Tourism and Hospitality (T&H) industry in Lagos state were laid bare at a one-day stakeholders’ forum convened by the state’s Ministry of Tourism, Arts and Culture, last Thursday.

This is further as burning issues  bordering on perceived multiple taxation, arbitrary levies, non or late communication of laws to operators, operational safety concerns, policy making, and other industry challenges, topped discussions at the highly interactive session which attracted notable T&H industry operators from across the state.

The forum convened by the state’s Commissioner for Tourism, Arts and Culture, Mrs Toke Benson-Awoyinka at the Eko Hotels and Suites, also presented a veritable platform for heads of other ministries, agencies and departments of the Lagos Government to clear perceived misconceptions held by T&H operators against some controversial regulatory policies enforced by the former in the industry.

Tagged; ‘Engagement Session with Tourism Stakeholders in the hospitality sector on current industry challenges, emerging trends, policy frameworks, and collaborative opportunities within the entire hospitality value chain,’ the forum featured panellists comprising industry and related players from the public and private sectors of the state.

While the regulators berated the T&H industry operators for non-compliance with laws and operational guidelines enacted in the state, industry operators blamed the former for acting unilaterally in what they described as the arbitrary formulation and enforcement of laws.

However, according the industry operators, the state government’s agencies continually fail to carry them in the guidelines formulation processes until these ‘anti-industry’ laws are finally enacted.

On their part, the various heads of agencies, who took turns to explain their works and guidelines affecting the T&H industry, accused some industry operators of what they called a case of ‘bigmanism,’ for deliberately refusing to comply with laid down industry best practices already practiced in other climes.

The forum featured two panel sessions, with the first which had as its topic; ‘Enhancing Compliance in the Hospitality Sector,’ featuring heads of MDAs in the Lagos government, including General Manager of the Lagos State Transport Management Authority (LASTMA), Mr Bakare Oki; GM, Lagos State Safety Commission, Mr Lanre Mojola;  Hon Shola Giwa, the Special Adviser to the Governor on Transport; Mr Abdul Ogungbo, the Special Adviser on Tax to the State Governor; GM, Lagos State Environmental Protection Agency, Mr Tunde Ajayi; Chairman, Lagos Inland Revenue Service (LIRS), Mr Ayodele Subair; GM, Lagos State Parking Authority, Mrs Olabisi Adelabu; and moderated by Ms Mojibade Sosanya.

The panelists noted that while collaboration among stakeholders had become imperative for growth and its sustenance in the industry, the problem of what they called ‘bigmanism,’ was a major stumbling block, as according to them, some operators in the industry see themselves as being above the law, and by extension, negating compliance.

According to them, getting operators to comply with regulatory frameworks enacted by the policy makers was key to driving development in the sector.

Mr Ogungbo, the Special Adviser on Tax Matters to state Governor Babajide Sanwo-Olu, explained that claims of multiple taxation by the state agencies on business owners were a misconception, as, according to him, agencies were merely collecting levies aimed at boosting the state’s revenue, which are not part of the statutory taxes.

Also, the GM, Lagos Parking Authority, Mrs Adelabu urged business operators to report to her agency any local government area or council extorting from any parking levy, adding that only her agency was authorised by the law to collect such levies on residents and T&H industry operators.

This is as the LIRS chairman, Mr Subair urged business operators to ensure compliance with the tax laws as regulated in the state.

The second session had as its topic; ‘Public-Private Partnerships: Strengthening Collaborative Efforts,’ and featured a host of top industry operators, including; Chief Samuel Alabi, President of the Hotel Owners and Managers Association, Lagos Chapter and immediate past Chairman, Board of Trustees of the Federation of Tourism Associations of Nigeria (FTAN); Mrs Tannaz Eterbarian, president of the Restaurants, Cafes, Bard and Clubs; Mr Richard Shittu, CEO of Cico Beach, Hotels & Resorts; and a top restaurateur, Mr Mustapha Olasunkanmi, moderated by journalist and radio producer, Mr Frank Meke.

Panellists were all in agreement on claims of multiple and arbitrary taxation and enforcement of controversial laws on operators in the state, just as they frowned at the decisionmaking processes at the public sector which they noted often excluded them until it got to enforcement stage.

Confronting the LIRS Chairman, Mr Subair on the latter’s claims that the tourism development tax was not strange to the local environment alone, Chief Alabi cautioned the local policy maker to avoid misplacing facts, adding that the said tax was not applied in the same was as obtained in other climes.

According to Alabi, proceeds from the collected tourism tax was channelled to the growth and development of the T&H sector in other parts of the world, except in Nigeria ‘where it is just another form of tax used to boost revenue for the entire economy.’

On PPPs and collaborating with the public sector, Alabi expressed skepticism, citing the numerous ongoing cases at the law courts, including the Supreme and the appeal courts over right of legislation in the T&H industry, as he concluded that ‘as long as government feels it has the sole right to rule over the industry, the problem will linger.’

Summing up the position of the operators, Mr Olasunkanmi provided a list of the ways out of the present situation between regulators and operators in the state.

“We need a regulatory framework in the state to serve as guide for industry operators, a PPP arrangement, perhaps deployment of technology, partnership of both public and private sector people in running the industry, funding windows for prospective investors, dispute resolution mechanism in the state for industry related issues.

Earlier the commissioner, Mrs Benson-Awoyinka described the stakeholders’ forum gathering as ‘long overdue,’ in view of ‘happenings in the hospitality sector, emerging trends and the need for us to always share views on how to improve this sector and continue to operate in line with acceptable best practices.’

“This sector does not only provide employment to thousands but also serves as a gateway for showcasing our rich cultural heritage, vibrant arts scene, and unparalleled hospitality.

“However, we are all not unaware of the significant challenges our industry faces, from the aftermath of the COVID-19 pandemic to evolving customer expectations and increased competition.

“With this gathering, we want to address these challenges head-on. We must adapt to the changing landscape by embracing new technologies and sustainable practices. Emerging trends in this sector such as digital transformation, eco-tourism, and personalized customer experiences are reshaping the way we operate. It is imperative that we stay ahead of these trends to remain competitive and relevant. In Lagos State, we are committed to creating an enabling environment for the hospitality sector to thrive,” the commissioner said.

According to her, in convening the stakeholders’ session, her ministry considers collaboration as ‘key to achieving our objectives.’

“By working together, we can create a seamless and memorable experience for tourists who depend on such data in that critical decision on destination choice.The sanctity and safety of your establishment also comes into focus, drugs, vices and environmental nuisances play a major role and such must be curbed to further make us a destination of choice and enhance Lagos as a LIVE WORK AND PLAY environment.

“We must leverage our collective strengths to build a robust and resilient hospitality sector.

“In the same vein, some of your questions and agitations would be attended to from the government perspective while listening to our first panel made up of head of agencies whose mandates relate to this important sector from safety to environment to parking management and taxation. They would also be sharing their thoughts on how we can all synergize for a better hospitality sector,” she stressed.

Benson-Awoyinka, therefore, urged T&H industry operators in the state to ‘continue to organise ourselves orderly and conduct our businesses in the most professional manner. I encourage you all to engage actively in today’s discussions, share your insights, and explore new partnerships.’

“Your feedback is invaluable in shaping the future of tourism in Lagos State. Together, we can overcome the challenges, harness the opportunities, and set new benchmarks for excellence,” she stated.

The government/industry stakeholders’ parley follows barely four days after the Tourism, Arts and Culture ministry took its turn at the just concluded 2024 Annual Ministerial Press Briefing organized by the Lagos State Government, as part of state Governor Mr. Babajide Sanwo-Olu’s first year of this second tenure in office commemoration.

The commissioner, Benson-Awoyinka at the Bagauda Kaltho  Press Centre, Monday, May 27, reeled out the ministry’s achievements recorded in the last two calendar years, including the recent tripartite MoU signed with the Standards Organisations of Nigeria (SON) and the Federation of Tourism Associations of Nigeria  (FTAN ) for the establishment and implementation of standard operating procedures (SOPs) in the T&H industry in Lagos State.

The agreement sees the SON introduce domesticated operational ISO-based standard procedures for T&H operators in Lagos in a bid to lift service delivery in the industry.