Implications of Government Policies and Inflation Rates on the profit Generation of Hotels in Ikorodu East Metropolis

Author: Shonubi, T. A.1 Yusuf, O. S.1 Osholonge, Y. M.1., Bodunde, T. D.2, Babalola W. A.3, and Akerele E. E.3

1 Department of Hospitality Management, Lagos State University of Science and Technology, Ikorodu, Lagos State, Nigeria
2 Department of Accountancy, Lagos State University of Science and Technology, Ikorodu, Lagos State,Nigeria
3 Faculty of Arts, Social & Management Sciences; Atiba University Oyo, Oyo State, Nigeria
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The negative impact of bad government policies and incessant increase of inflation on business
including the hotel business, calls for urgent attention of researchers. This study hereby examines the effect of government policies and inflation rates on the profit generation of some selected Hotels in Ikorodu East Metropolis. The researcher employed both expo – facto research design and exploratory research design. The population of this study is senior staff of Two (2) hotels in Ikorodu East Metropolis of Lagos state. Secondary data was used in this study using documentation method of data gathering. A designed structured questionnaire was one of the instruments of data collection in this regard. Both Inferential and descriptive methods of analysis was employed for data analysis for this research study. Ordinary Least Square (OLS) regression model was employed to test hypotheses one to three respectively. This study revealed that bad government policies and inflation rate has significant negative effect on the profit of hotels. Arisen from the findings of the study, the following recommendations were made: Government should ensure that they avoid issuing bad policies because bad government policies have significant negative effect on business operations of hotels; Government should put in place adequate measures that can help mitigate against inflation because increase in inflation rates have significant negative effect on business operations of hotels; and Management of hotel business should ensure that they rise to the occasion of continuous price increment by looking better and cheaper alternative of meeting their business operations

Keywords: Government Policies, Inflation Rates, Profit Generation, Hotels