EFFECT OF ELECTRICITY ON PROFITABILITY OF THE HOTEL INDUSTRY IN PLATEAU STATE
DOI:
https://doi.org/10.67199/m9xr2q92Keywords:
Electricity, Profitability, HotelsAbstract
This study examines the effect of electricity on the profitability of hotels in Plateau State. It explores how electricity reliability, cost and accessibility affect hotel Profitability. The study employs survey design that is cross-sectional to permit for the collection of quantitative data. The simple random sampling method was employed and 70 respondents were sampled. Primary method of data collection in line with World business environment survey questions, developed by World Bank was adapted and regression analysis was used to analyse the data. The paper is guided by the system theory, emphasizing how environmental factors affect business performance. Findings from the study reveal that electricity affect the profitability of the hotel industry in Plateau State, thereby increasing operational costs, disrupting services, and limiting business expansion. The dependence on generators and the rising cost of fuel and diesel further erode profit margins. Reliable and affordable electricity is critical for the survival and growth of the hospitality industry. The study recommended that the hotels should diversify energy sources through renewable energy. Government should increase investment in renewable energy and also promote policy incentives for energy efficiency which enhances profitability.
Keywords: Electricity, Profitability, Hotels.
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