Effects of Anti-Competitive Practices on the Profitability of Hotels in Plateau State

Anti-competition practices distort hotels which pose a challenge to the profitability, which
ultimately affects the survival of the industry, growth of the industry, revenue to government
(taxation), employment enhancement and corporate social responsibility. This study examined
the effect of anti-competitive practices on the profitability of hotels in Plateau State. The study
employed 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 study revealed that anti-competition practices have significant effect on profitability of
hotels in Plateau state. The implication of the result is that anti-competitive practices prevent
businesses access to foreign markets, raise costs of transaction/ inputs, raise prices, increase
scarcity of inputs, enhance poor quality of service and product. The study contribute to theory
used as anchor theory to this study; the System theory, which assumes that for the organizations
to achieve their objective such as profit maximization, they must pay attention to changes in
the external environment. The study recommended that government must ensure free and open
competition so as to avoid unfair trade practices among the hotels which may result to low
quality of service.