APPRAISING THE IMPACTS OF PRIVATISATION POLICY ON THE NIGERIAN HOSPITALITY INDUSTRY.
(A STUDY OF OWENA MOTELS AKURE AND GRAND HOTEL, ASABA)
BELLO Y .O AND BELLO M.B (Mrs).
DEPARTMENT OF HOSPITALITY MANAGEMENT
AUCHI POLYTECHNIC AUCHI
E mail -firstname.lastname@example.org
Experts in the field of hospitality sector canvassed for the need to privatize all the government owned hotel establishments in the country. Their argument is base on the fact that government does not have business to run business. Hence, government should focus on the business of providing conducive environment for businesses to thrive as majority of hotels being managed by the government in Nigeria are characterized by inefficiency- poor service delivery ,low returns on sales ,high operation cost ,and so on. The researchers decided to assess the effects of recent privatization effort of government on the privatized hotels with emphasis on Owena Motels Akure and Grand Hotel Asaba. The researchers relied on the accounting data obtained from the two studied hotels. However a variant of MNR (1994) methodology was adopted in the first part of the study. We then test whether a statistical significant change occurred after privatization using the Wilcoxon signed rank test and the standard test for difference in the population means. The result shows that the two hotels under study experience significant improvement in profitability after privatization compared with the pre-privatization era with enhance change due to privatization returns on sales and asset staged at 6,460 and 12, 0880 respectively in Owena Motel and 6,599 and 54,8840 respectively in Grand Hotel. The research further shows an enhanced operating efficiency on the two hotels, a boost in capital investment and real sales of the two hotels under study. Base on this positive trend the researchers does recommended that private people should be left to handle hospitality businesses, while government concentrating on...