Travel/Tourism
Ikeja Hotel Blames COVID-19 for N786m Post-Tax Loss in H1 2020
By Dipo Olowookere
The board of Ikeja Hotel Plc has revealed that the N786 million loss after tax the company recorded in the first six months of this year was caused by the COVID-19 pandemic.
In a statement on Monday, the firm explained that the movement restrictions imposed on some parts of the country as a result of the contagion affected its operations.
On March 30, 2020, the federal government imposed total lockdown in Lagos, Abuja and Ogun State except for essential workers.
This affected players in several sectors of the economy, including those in the hospitality business as flights and hotels were asked to shut down.
Last week, the company released its financial statements for the period ended June 30, 2020, and from the analysis by Business Post, the revenue generated during the period significantly reduced to N2.9 billion from N5.8 billion in the corresponding period of last year.
This decline in turnover was broadly impacted by the revenue raked from guests lodging in the hotel rooms. In H1 2020, only N1.7 billion was generated from rooms compared with N3.5 billion 12 months earlier, while revenue from food and beverage dropped to N887.4 million from N1.9 billion, with miscellaneous income crashing to N109.9 million from N313.3 million.
In the period under review, the cost of sales went down to N2.7 billion from N4.4 billion, while the gross profit crashed to N177.4 million from N1.5 billion in H1 2019.
However, the other income jumped to N268.3million from N149.1 million as a result of the N13.3 million made from the sales of scrap as well as exchange gain on translation of currency.
Despite the lockdown and the halting of activities in some parts of the country, the administrative and general expenses of Ikeja Hotel increased to N677.7 million from N628.1 million, while the sales and distribution expenses reduced to N124.3 million from N242.6 million, leaving the company with an operating loss of N356.3 million as against the operating profit of N728.3 million in the first six months of last year.
With a finance income of N11.5 million and finance costs of N432.3 million (versus N386.4 million in H1’19), Ikeja Hotel closed June 30, 2020, with a loss before tax of N777.1 million compared with the profit before tax of N341.9 million in 2019 half-year.
In the first six months of last year, the firm recorded a profit after tax of N284.5 million and the board has promised to improve the fortunes of the company as business activities are gradually picking up.
“The company will respond appropriately to reduce this negative impact significantly and improve the fortunes of the company as the government further relaxes COVID-19 pandemic regulations and allows resumption of international flights,” Ikeja Hotel assured.
Ikeja Hotel owns the popular Sheraton Lagos Hotel and also has significant shareholding in the Tourist Company of Nigeria Plc, owners of Federal Palace Hotel & Casino, Lagos.
Travel/Tourism
US to Nigerian Travellers: Visa Overstays Not Good for Fellow Citizens
By Adedapo Adesanya
The United States (US) has warned that visa overstays by Nigerian travellers could deny future opportunities for other aspiring applicants.
The United States embassy had earlier in February stated that compliance would help protect visa access for students and business travellers.
In a reminder statement posted on its official X handle on Monday, the US Mission in Nigeria advised that strengthening compliance helps protect visa access for students, business travellers, and families who travel responsibly.
“#Reminder: Visa overstays by Nigerian travellers can affect opportunities for their fellow citizens. Strengthening compliance helps protect access for students, business travellers, and families who travel responsibly. If you are aware of visa fraud, please report it to [email protected] or [email protected],” the statement read.
Last August, the Mission also announced that all non-immigrant visa applicants must now provide details of their social media accounts from the past five years.
In a statement, the embassy said applicants are required to disclose usernames or handles from every platform used within the period when completing the DS-160 visa application form.
“Visa applicants are required to list all social media usernames or handles of every platform they have used from the last 5 years on the DS-160 visa application form. Applicants certify that the information in their visa application is true and correct before they sign and submit,” the statement read.
The mission warned that omitting such information could result in visa denial and render applicants ineligible for future visas.
The DS-160 is the standard online form required for most US non-immigrant visas, including temporary business (B-1), tourism (B-2), student visas (F and M), and work-related categories such as the H-1B.
It insisted the new rules were designed to enhance security, they come amid repeated US criticism of governments accused of clamping down on free speech online.
Travel/Tourism
Tinubu Okays 30% Debt Relief to Airlines, Orders Fuel Price Talks
By Adedapo Adesanya
President Bola Tinubu has approved a 30 per cent relief on debts owed by local airlines to aviation agencies and ordered talks involving fuel marketers, airlines, and regulators to reach a fair jet fuel price.
He had earlier agreed in principle to write off part of domestic airlines’ debts to aviation agencies following successful talks with the Airline Operators of Nigeria (AON).
The group demanded a total waiver of debts owed to aviation agencies to cushion the effect of a 300 per cent increase in aviation fuel prices during a crucial high-level meeting with the Minister of Aviation and Aerospace Development, Mr Festus Keyamo and other critical stakeholders in Abuja.
Recall that the airlines had called off their impending strike due to commence on Monday over the rising cost of operations, particularly for fuel, triggered by the current Middle East crisis.
In an update on Thursday, Mr Keyamo said President Tinubu had approved the 30 per cent write‑off and tasked stakeholders, including fuel marketers, government representatives, airlines, and regulators, to reach a fair jet fuel price by Sunday.
Also, the federal government agreed to set up a committee to review taxes, levies and fees charged on domestic air tickets, to recommend cuts to ease pressure on airlines and passengers.
Engagements among representatives from government, airlines, fuel marketers, and regulators will continue to agree on what the minister described as “fair and reasonable” pricing for jet fuel, with any outcome to be made public.
The cost of fuel has generally risen in the last two months due to the escalating war with Iran by the US and Israel, which has triggered one of the most severe energy shocks in decades. Oil prices are currently above $100 per barrel as markets react to escalating tensions and the risk of prolonged disruption.
At the centre of the crisis is the Strait of Hormuz, a chokepoint through which roughly one-fifth of global oil supply flows. With shipping constrained, the effects are cascading across the global economy, raising fuel costs, fueling inflation, and increasing the risk of economic slowdown across many economies. This is forcing airlines to raise fares, curb growth plans and rethink forecasts.
Travel/Tourism
Nigeria Achieves 91.4% Safety Rating in ICAO Assessment
By Adedapo Adesanya
Nigeria has received a 91.4 per cent aviation safety rating following the latest assessment by the International Civil Aviation Organisation (ICAO) Coordinated Validation Mission (ICVM), marking one of its strongest performances in recent years.
This was disclosed by the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, who announced the development on Wednesday at his office in Abuja, describing it as one of the highest safety ratings Nigeria has achieved under ICAO evaluations since 1960.
He explained that the outcome follows a comprehensive audit in which all aviation agencies and airlines operating in the country were assessed and certified safe based on the findings of the ICAO visiting team.
Speaking further, Mr Keyamo attributed the success to President Tinubu’s deliberate policy and support for the aviation industry.
The ICVM team concluded its on-site safety oversight audit in Nigeria on Wednesday after beginning its review last week.
The exercise was carried out as a follow-up to the ICAO Universal Safety Oversight Audit Programme (USOAP), conducted between August and September 2023.
Mr Keyamo had on Wednesday disclosed key federal government interventions aimed at reducing the financial pressure on airlines following rising concerns over the cost of Jet A1 fuel and the threat of service disruptions in the aviation sector.
Mr Keyamo stated that President Bola Tinubu had approved a generous discount on certain outstanding fees owed to the government by airline operators after they threatened to shut down over a 300 per cent surge in jet fuel price
He explained that the decision is part of efforts to provide immediate relief to the sector and prevent a breakdown in air transport services.
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