In this interview, Mr. Damola Are, Chairman/Chief Executive Officer of Kakanfo Inn and Conference Centre, speaks with AKINWALE ABOLUWADE of Oyo Reporters Online about the secrets of his company’s success amid stiff competition and the diverse issues affecting tourism in Nigeria.
How would you describe the experience at Kakanfo Inn and Conference Centre over the past year?
It was a challenging year. We had some highs and some lows. Unfortunately, we lost a board member as well. Additionally, we had to make several adjustments due to harsh economic conditions. However, despite these challenges, we ended the year well and on a high note—and are well-positioned for 2025. The experience tested our skills, but as the saying goes, tough times don’t last; tough people do. Necessity is the mother of invention, so we had to adapt, and we overcame.
What was the main factor behind the success recorded in the year under review?
Firstly, for most of last year, we had the right players. We had strong leadership from the General Manager and a well-balanced team across all departments—Food and Beverage, Accounting, Maintenance, Sales and Housekeeping. Our department heads, most of whom are in their second year, have adjusted well to working together and have a much better understanding of their roles.
Secondly, they responded well to the support and advice that the executive leadership provided. They trusted the guidance, which helped them navigate several difficult situations. If I had to narrow it down, having the right people is a plus, but having them believe in themselves, in the system, and in the leadership made the real difference—and it will continue to do so.
Beyond the workforce, how would you assess the role of creativity in your success?
Experience is the best teacher. Fortunately, I have encountered similar challenges before, so it was a matter of restructuring and adapting strategies for the current environment. Many creative strategies that worked in different circumstances and locations were repackaged for this time and place both by myself and the general manager.
For instance, I recall the economic downturns during 9/11 and the 2008 global financial crisis. Those were difficult times, but the lessons learned then became valuable strategies for running operations in 2024.
Success is not just about implementing strategies but also about making necessary adjustments. These adjustments were only possible because the team believed in the process and trusted in leadership. It took time, but eventually, everyone bought into the changes.
With rising inflation affecting costs, how have you been coping?
Margins have become tighter—we lost portions of our profit margins. At one point, the priority was to ensure we covered expenses, then gradually build from there. We also had to revamp many of our products and services.
Although our price adjustments were not proportional to inflation, we had to increase rates slightly, which affected our profit. However, we believe in the long-term game. Our occupancy rate is the highest it has ever been, and our customers continue to support us because we have remained loyal, consistent, and service-oriented. We worked with them during tough times, and they appreciate that.
Nigeria’s current economic policies are tough. Do you think this phase is necessary?
Some of the policies were necessary, and the adjustments needed to be made. However, I believe the speed of implementation was too fast. In Western countries, before such drastic changes, there are support systems in place—such as palliative measures by the Department of Health and Social Security in Europe or the U.S. We don’t have that here.
As a result, the impact has been severe—not just on the poor but on everyone, including employers. When employers suffer, their employees and families suffer too. The strategies were well-intended, but the execution was too aggressive and painful.
While I agree with the ideology behind the changes, I believe a slower rollout would have been more bearable. The impact is also uneven across Nigeria—Lagos and Abuja may feel it less because of higher demand, but cities like Ibadan, Abeokuta, and Ilorin are experiencing more hardship.
Is the government paying enough attention to tourism and hospitality? Or are we still enriching other economies?
The government has talked about tourism, but I haven’t seen tangible steps to develop infrastructure or create awareness.
For instance, I’m not an Arsenal fan, but if you watch Arsenal play, you’ll see “Visit Rwanda” on their jerseys. Rwanda has created a tourism platform and advertises it in the English Premier League, attracting visitors. As a result, Kigali’s hotels are always full.
Lagos also attracts visitors, but not necessarily because of government efforts—“Detty December” was a private initiative, not a government creation. However, Lagos has the infrastructure to handle it. Other states need the same level of investment in infrastructure to attract tourists.
Tourism requires good roads, security, and affordable energy. If these basics are in place, hospitality businesses can thrive, create jobs, and contribute to the economy. Right now, everything is out of sync and moving too slowly.
What should hospitality industry stakeholders do to drive positive change?
There should be joint meetings between local chambers of commerce, hotel associations, and tourism boards to map out strategies—just like in the Western world. In Nigeria, such cohesion is missing outside a few organized cities.
If these groups collaborate and speak with one voice, they can present their demands to state governments and tourism commissioners. When people see the potential revenue and job creation that tourism can bring, they will act.
For example, I recently watched a YouTube video of a man riding from Lekki to Ilaje in Ondo State. The beach there is breathtaking—comparable to Mauritius, Bora Bora, or Hawaii. The journey took just an hour along the coastline, but when the tide came in, he had to pass through a rainforest to get back to the coast.
This highlights the issue—beautiful locations exist, but accessibility is poor. Without infrastructure or coordinated promotion, these places remain underdeveloped. We have the potential, but we need young, creative minds and public-private partnerships to bring these ideas to life.
Ibadan’s hospitality industry is growing, with new hotels springing up. How has Kakanfo Inn maintained its edge?
Think of Pepsi and Coca-Cola—both have competitors, but they remain dominant brands. If a brand is resilient, consistent, and delivers quality, there will always be a market for it.
At Kakanfo Inn, our safety standards and consistency are unmatched. Customers from Lagos and Abuja often book with us based on referrals. They have choices, but they recognize our reliability and professionalism. This is what builds brand loyalty.
Despite economic challenges, you continue maintaining and upgrading the hotel. What drives this commitment?
Absolutely. Whatever we did last year, we plan to do even more this year. We continuously reinvent, revamp, and rejuvenate our property and services.
For example, we recently hired a new chef from Lagos, along with two supporting chefs from outside Oyo State. Investing in human capital is just as important as maintaining physical assets. If we take care of our employees and facilities, our customers will take care of us.
Maintenance culture is often lacking in Africa, but Kakanfo Inn seems different. What’s the secret?
I wouldn’t say poor maintenance is purely an African issue, but it is prevalent. Many businesses fail because maintenance is not prioritized.
At Kakanfo Inn, maintenance culture has been ingrained for decades. The previous chairman, Dr. Lekan Are, believed in it. The MD believed in it. I believe in it. The current GM believes in it.
When junior staff see maintenance being emphasized daily and rewarded, they eventually adopt the culture. This consistency has helped our hotel remain strong for nearly 40 years.
Final thoughts for policymakers and stakeholders?
Nigeria has the potential to surpass tourism giants like Jamaica, the Bahamas, and Mauritius. We have incredible resorts, game reserves, historical sites, and museums, yet we haven’t tapped into 10% of our potential.
The government must create an environment where investors feel confident to build infrastructure. If done right, every state in Nigeria could have its own “Detty December,” pulling in more foreign exchange than oil.
Let’s map out Nigeria’s tourism spots, develop infrastructure, and keep them functional. If we do this, everyone will benefit. A wise man solves his own problems.
