The Lagos State Government said yesterday that it has lost over N4.5billion which it would have realized from licensing and upgrading of hotels in the state.
Commissioner for Tourism and Inter-governmental Relations, Mr. Oladisun Holloway made the revelation while speaking on the judgment secured by the Lagos State Government against the Federal Government at the Supreme Court.
He emphasized that the judgment has stripped the Nigeria Tourism Development Corporation (NTDC) of powers to regulate, register, license and grade the hospitality industry in states.
Holloway who was flanked by Commissioner for Information Mr. Aderemi Ibirogba affirmed the judgment put to rest the six years court battle, paving way for state governments to take full control of tourism regulations and development within their respective jurisdiction.
He said that levies that would have accrued to the state government from hotel registration and grading fee by over 3000 hotels yet to register with the state government was stalled by the court action.
“We stopped sharing funds from the NTDC in July 2007, in Lagos we believe we have on the average about 3000 establishments, excluding the five stars and other hotels. If we are to take an average, N250,000 and multiply by 3000 establishments, for the six years the case lasted, that will give us N3.5billion”.
The commissioner explained that the revenue the state government generates from hotel licensing was not the most important benefit of the Supreme Court judgment, but the opportunity to restructure the tourism industry in the state. He urged hotels operators yet to register their hospitality businesses with the state government in accordance with the law to do so in order to stay in business in the state.
