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Delta State – Hospitality, the New Crude Oil

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waterpark in Delta state

Anthony Elikene

The hospitality sector is gradually becoming the mainstay of many economies in the world and from the looks of it, it might also become the economic pillar of oil-rich economies such as Nigeria.

There are many states in the country that can effectively run-on revenue generated from hospitality. Delta State is one of such states.

With an estimation of over 4,112,445 people, a close gender balance of 2,069,309, male, and 2,043,136, female population, Delta State is considered one of the most endowed in Nigeria.

Known as The Big Heart but the real popularity of the state comes from its being an oil-producing state in the Niger-Delta region.

In the latest data on 13 per cent derivation sharing, Delta State ranked first with 31 per cent of N94.4 billion from a total of N302.8 billion, according to the National Bureau of Statistics (NBS) 2019 report.

But with the instability of global pricing for crude, it becomes imperative for the state and in extension, the country, to start ‘making hay while the sun shines’ in other lucrative sectors to weather future instabilities in the oil sector.

Fortunately, Delta State is also famous for its richness in diverse cultures and agricultural prowess. These alternative potentials can become the state’s economic mainstay if developed, especially as the hospitality sector.

According to travelnews.online, an online travel magazine, “Nigeria has over 11,000 hotels” and a considerable amount of these hotels are in Delta State. The accommodation sector alone is estimated to employ over 2 million direct and about a million indirect jobs in Nigeria.

The National Association of Nigeria Travel Agencies (NANTA) between January 2013 and January 2014 generated N197,599,911,988, which is about 80 per cent of all international airlines ticket sales in the country.

With the commissioning of the Warri-Itakpe railway line that runs through Agbor, connecting three states: Delta, Kogi, and Edo States, eventually, it will also connect the Federal Capital Territory, Abuja, Delta State should brace up for the flood of private sector development that is expected to overrun the state.

The rail line alone has projected an annual commuter figure of about one million people. This means more people will make stopovers at different locations and sales are expected to rise at such locations.

In a publication on the African Travel and Tourism Association (ATTA) website, Executive Director, West Africa, BON Hotels, Paul Umoh, said: “In 2017, tourism statistics reflected a growth of 140.2 per cent from 2016. And from 2015 to 2016, 130.3 per cent the increase was seen. Two years prior, the statistics were in decline. Now, however, more people are visiting the country for business and leisure, and investors are seeing the increased potential in the region.”

“The hospitality industry in Nigeria has predominantly been concentrated in larger cities such as Lagos and Abuja. By expanding into smaller cities across multiple regions, we will dramatically increase the potential for business and leisure travel throughout the country,” explains Umoh. In 2016 BON Hotel acquired the Protea Hotel in Delta State.

Delta State also plays host to the largest waterpark in West Africa, Park Vega Waterpark, located in Agbor. The rest of the tourism world has gone far ahead as many in Nigeria still wonder what the waterpark is in 2020.

Quoting from a 2015 report conducted by the International Association of Amusement Parks and Attractions (IAAPA), the waterpark was defined as a facility with “at least four of the following attractions considered essential to a waterpark such as toddlers’/children’s play area, tube slide, lazy river, body flume, wave pool, tipping bucket play area, speed slide, family raft slide, mat racer slide, spray ground, still-water lagoon pool, action river, water coaster or a surfing simulator.

Designed for family and friends, couples and individual, to bond, Park Vega Waterpark attends to the young and the young at heart as they experience wow moments and create memories that last a lifetime together.

The park is a fun place to go as a family with several facilities that thrills the kids, toddlers, teenagers, and adults such as Space hole slide, Multi-surf slide, Freefall slide, Blackhole slide, Aquatower, splash pad, Attraction pool, relax pool that has a bar, and a restaurant that serves delicious food.

How Can Delta State Benefit from a Waterpark Located in the State?

When residents of other states visit the park in Delta State, it would be a net gain for Delta but a net loss for the other states who had people leaving to visit Delta. But it would be gainful for Nigeria as the taxes and trade inspired by the park are still within the country.

This is why the federal government and Delta State government should encourage such investments in the hospitality sector that has a rippling effect by offering tax rebates and holidays just like other countries that operate waterparks.

In the United States, Kentucky offers eligible tourist attractions sales rebates up to 25 per cent. The state understands some tourists may not have visited the state if it was not for the waterpark.

The International Association of Amusement Parks and Attractions said in 2011 nearly 30,000 attractions in the United States generated $211 billion in economic activity. America’s local and regional public park agencies generated nearly $140 billion in economic activity and supported almost 1 million jobs from their operations and capital spending alone in 2013.

Studies have revealed that residents prefer to live in proximity to a park. The National Association of Home Builders says the presence of parks influences 65 per cent of homebuyers. Another study in 2001 by the National Association of Realtors found that 50 per cent of survey respondents were more likely to choose a neighbourhood near parks and are willing to pay more to be located close to a park.

Generation of new jobs – The state can benefit immensely as waterparks are known worldwide to create a lot of direct and indirect jobs wherever they are located.

Development of infrastructure – Research has shown that infrastructural development around waterparks is very fast as everyone wants to key into the business buzz created by the waterpark.

Improve the image of the destination – Normally unknown locations gets on the map the moment a waterpark is built in the area. Because waterparks are usually constructed in places considered as outskirts for reasons such as space, low traffic, easy access, and others, the waterpark tends to add reputational value to the location.

Increase tourism – Waterparks have been known to benefit tourists’ businesses such as hotel, entertainment, lounges, restaurants amongst others. This helps the local communities and the state, in the long run, to grow its tourist potentials using the waterpark as a platform.

Economic benefits for having a waterpark in Delta state

There will be more business transactions in the surrounding communities as they cash into the bee-hive of activities created. This will eventually transcend to more revenue being generated by the local government and the state government.

Transport Sector – The aviation industry, the new rail line that has just been commissioned by the Federal Government in Delta State and surrounding states, the road transporters are all expected to benefit from the window of an opportunity opened by the waterpark located in Delta State.

Political scorecard – Waterpark is a major capital-intensive project and a great scorecard used by politicians to highlight infrastructural achievements. In The United States alone, there are over one thousand waterparks, each attracting its infrastructural development, and influencing positive reputation to grow the location they operate.

The state government benefits from these developments and only need to create the favourable climate for waterparks to thrive.

Delta State is blessed with several locations that can be developed to become a major tourist and hospitality venue capable of attracting guests from within and outside the country.

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Travel/Tourism

Airlines Fault Claims of Unpaid NCAA Regulatory Fees

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Modular Refinery for Aviation Fuel

By Adedapo Adesanya

The Airline Operators of Nigeria (AON) has denied owing cost recovery charges to the Nigeria Civil Aviation Authority (NCAA), insisting that all services rendered by the regulator to domestic airline operators are paid for fully in advance on a cash-before-service basis.

In a statement from the airlines’ body, it was emphasised that no domestic airline in Nigeria receives NCAA regulatory services without first making full payment of invoices issued to it by the agency, describing suggestions of the indebtedness for regulatory services as factually inaccurate.

It said that what the NCAA refers to as ‘outstanding charges’ relates solely to the 5 per cent Ticket Sales Charge (TSC), a tax imposed by the NCAA on passengers, which it said is not in consonance with the dictates of international aviation.

The AON then urged the federal government to urgently amend the Civil Aviation Act to empower the NCAA to collect whatever appropriate fees and charges are due it directly from passengers or whoever else, without routing such through the domestic airlines, from June 1, 2026.

It said doing this will relieve domestic airlines of the financial burden of acting as collection agents for the NCAA, since airlines currently bear banking transfer charges and other transaction costs in the process of transmitting funds to the organisation.

The airline body reiterated its position that the NCAA is a regulator, not a revenue-generating agency and that it does not fund any aspect of the airline businesses or render any direct service to passengers.

The AON said every service the agency provides to airline operators is fully paid for in advance before it is rendered.

“The AON notes that several member airlines maintain dedicated accounts, from which the NCAA draws down its monthly remittances, until the force majure caused by the Iran-Israel/USA conflict, which had put a lot of financial pressure on airlines worldwide.

“Notwithstanding this arrangement, the AON had formally appealed to the federal government through the office of the Minister of Aviation and Aerospace Development, to suspend the payment of all statutory charges temporarily, as an interim measure to assist airlines in managing their cash flows during the current period of severe financial stress caused by the increase in the cost of Jet A1.

“As an interim response, President Bola Tinubu graciously granted a 30 per cent concession while waiting for the government’s decision on the other aspects of the AON intervention request.

“While the AON acknowledges and appreciates this gesture, we had appealed for a meeting with Mr President to discuss further reliefs, a request that is yet to be granted,” the AON said.

Speaking further on reports that airlines owe billions in debt to the NCAA, the AON said the 5 per cent Ticket Service Charge in question was introduced over 45 years ago under the Government of General Gowon by the then Federal Civil Aviation Authority (FCAA) and its continued relevance has not been reviewed ever since.

It further stated that domestic airlines, in addition to the 5 per cent TSC, still pay separately ànd directly for services provided by the various industry agencies, including the NCAA itself.

AON said that the 5 per cent TSC is an ad valorem tax applied to an airline’s gross earnings, not profits and that the global aviation industry operates at a profit margin of between 1.5 per cent and 2.5 per cent at best.

“The AON remains committed to constructive engagement with the government and all stakeholders to achieve a growth-oriented sector, designed to enable the accelerated growth of key sectors of the economy and the improvement and sustenance of a healthy quality of life for the citizenry,” it said.

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Airline Remittances: NCAA Halts Enforcement of ‘No Pay, No Service’ Policy

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NCAA

By Adedapo Adesanya

The Nigeria Civil Aviation Authority (NCAA) has announced the temporary suspension of its “no pay, no service” directive earlier issued to airlines with outstanding statutory remittances, citing ongoing consultations and prevailing operational challenges in the aviation sector.

In a statement, the authority said the decision followed a review of industry conditions, particularly the rising cost of aviation fuel, which has placed significant financial pressure on domestic carriers and threatens overall sector stability.

However, the NCAA stressed that the suspension does not amount to a waiver, cancellation, or forgiveness of the debts owed by the affected airlines, noting that such decisions fall outside its regulatory mandate.

The agency recalled that President Bola  Tinubu had earlier approved a 30 per cent discount on outstanding statutory charges owed by domestic airlines to aviation agencies, as part of broader government efforts to cushion the impact of high Jet A1 fuel costs and stabilise the industry.

According to the NCAA, airlines remain fully responsible for settling their obligations, adding that it would engage operators individually to ensure compliance through structured repayment arrangements that do not disrupt operations.

The regulator also clarified the nature of the 5 per cent Ticket and Cargo Sales Charge, describing it as a statutory levy mandated by the Civil Aviation Act and embedded in the cost of air travel and cargo services.

It explained that the charge is collected by airlines at the point of ticket and cargo sales on behalf of the aviation system and must be remitted accordingly.

The organisation emphasised that the funds do not constitute revenue or profit for the airlines and should not be treated as such.

It further noted that the revenue from these charges is distributed among key aviation institutions, including the regulator itself and other service providers, all of which play vital roles in ensuring safe, efficient, and internationally compliant aviation operations.

It added that the NCAA operates on a cost-recovery basis and does not receive direct funding from the Federal Government for its routine regulatory activities, making timely remittance of statutory charges critical to sustaining its oversight functions.

The suspension of the enforcement directive, it said, is a measured step aimed at maintaining operational stability in the sector while reinforcing the obligation of airlines to remit collected charges.

The NCAA reaffirmed its commitment to balancing regulatory enforcement with industry sustainability, warning that statutory funds already collected must be remitted for their intended purposes.

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Emirates Skywards Commences ‘Season of Rewards’ Campaign

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Emirates Skywards

By Modupe Gbadeyanka

A new campaign designed to celebrate its passengers across the globe has been launched by Emirates Skywards, a statement from the company confirmed.

The promotion is known as Season of Rewards, and will run from May 21 to August 31, 2026, with beneficiaries getting different rewards for their patronage.

The Skywards Season of Rewards offers more savings with Cash+Miles on Emirates and flydubai, with members unlocking twice the savings, including enhanced Cash+Miles rates across the Emirates and flydubai network when booking flights and extras (excess baggage, lounge access and seat selection. The offer applies across all classes of travel, fare brands and destinations on both airlines. With the limited-time offer, 2,000 Skywards Miles can unlock savings of $30 instead of $15.

In addition, passengers will receive extra tier benefits for travel up until August 31, 2026. Members earn a 20 per cent bonus Tier Miles on every Emirates or flydubai flight, helping members move through the tiers faster. With reduced Tier Miles required during this period, it’s now even easier for members to renew or upgrade their membership status.

Also, they will get 50 per cent bonus Miles with travel partners, including Emirates Skywards Hotels, Marriott Bonvoy, IHG Hotels and Resorts, Jumeirah and more. However, registration is required to participate, and bonus Miles will be credited within 60 days after the end of the offer period.

Further, Skywards members can book their next reward flight and extras with Miles, starting from 4,500 Miles instead of 9,000 Miles during the promo period across all routes, cabins and fares.

“Skywards Season of Rewards reflects our continued commitment to creating even more value for our members worldwide.

“Whether members are planning a family holiday, a Dubai stopover, a weekend escape, or simply looking to maximise rewards across their travel spend – this initiative unlocks more opportunities to earn, save and experience the world with Emirates Skywards,” the DSVP Emirates Skywards, Nejib Ben Khedher, said.

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