Travel/Tourism
Tourism Revenue: How Domestic Travel Contributed 97% in 2016?

By Olukayode Kolawole
The data presented in the recently published hospitality report on the Nigerian hospitality sector by Jumia Travel has finally cleared the air on the argument that Nigeria doesn’t have enough tourist destinations to attract people’s interest to spend their holidays in the country instead of traveling to some popular holiday destinations abroad.
It’s fair to say that without the economic woes that plagued the country last year which placed lots of pressure on people’s spending habit, no one would have fully understood how much the country can generate from the tourism sector.
Meanwhile, the 2014 & 2015 World Travel & Tourism Council (WTTC) reports indicated that domestic travel had always contributed more than two-third of tourism’s contribution to the country’s GDP.
For instance, in 2014, domestic travel spending generated 95.8% of direct Travel & Tourism GDP compared with 4.2% for international visitor exports (money spent by foreign visitors to a country), and was forecast to grow by 2.7% in 2015 to NGN2, 544.3bn. In 2015, domestic travel increased slightly to 97% while international visitor export went below 4%.
Despite the huge revenue generated in the last 3 years, the tourism sector doesn’t seem to reflect this massive income. There are two reasons why this is so.
First, the revenue generated primarily reflects the activities of industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). But it also included, for example, the activities of the restaurant and leisure industries directly supported.
Second, there was an ‘indirect’ contribution which encompassed the GDP and the jobs supported by travel & tourism investment spending – an important aspect of both current and future activity that includes investment activity such as the purchase of new aircraft and construction of new hotels; Government ‘collective’ spending, which helps travel & tourism activity in many different ways as it is made on behalf of the ‘community at large’ – e.g. tourism marketing and promotion, aviation, administration, security services, resort area security services, resort area sanitation services, etc; Domestic purchases of goods and services by the sectors dealing directly with tourists – including, for example, purchases of food and cleaning services by hotels, of fuel and catering services by airlines, and IT services by travel agents. The ‘induced’ contribution measures the GDP and jobs supported by the spending of those who are directly or indirectly employed by the Travel & Tourism sector.
Bruce Prins, a renowned hospitality consultant for over two decades shares fascinating trends that will shape the sector in 2017 (this year).
”More recreational facilities and services will be required; better reservation systems that are 24 hours and easy to action will be the deal-breaker; ease or disease of air travel will affect everything; renovation and maintenance will make a hotel, and the lack thereof will break a hotel; and social media is, and will be even more so the most powerful marketing tool,” stated Mr Bruce.
The current President of the National Association of Nigeria Travel Agencies (NANTA), Mr. Bankole Bernard offered some suggestions on how to take the travel and tourism sector to the next level. In his prescription, he mentioned four major quick fixes; government endorsement of policies that favor the industry in terms of forex request from CBN; aviation fuel supply to ease operations within the industry; improved infrastructure at airport terminals; and privatization of the aviation industry. According to him, once all of these are implemented, the sector will grow unstoppably.
There are also some insightful data on the state of e-tourism in the country. First, Nigeria is among the leading countries with the highest smartphone penetration in Africa. In 2016, there were 15.5 million smartphone users in Nigeria.
Second, the success of e-commerce in the country can also be a consequent of the increase in the number of smartphone users, which is forecast to reach 18 million users in 2017.
Third, internet penetration stood at 52% (97, 210,000) of the country’s population (186,879,760) as at June 2016.
Fourth, e-commerce is estimated to be worth US $13billion by 2018. However, the country is still lagging behind African countries such as Morocco, Egypt, and Kenya.
Fifth, globally, the number of hotel bookings made online stand at 148.3 million while the percentage of same day hotel reservations via smartphone stand at 65%.
Olukayode Kolawole is the Head of PR & Marketing at Jumia Travel NG.
Travel/Tourism
Airlines Face Fresh Turbulence Over Jet Fuel Scarcity
By Adedapo Adesanya
The National Association of Aircraft Pilots and Engineers (NAAPE) has revealed that Nigerian airlines are battling a severe jet fuel crisis, triggered by soaring jet fuel prices and supply shortages.
This is the latest blow to the aviation industry, which escaped an industrial action by airline operators over the price of jet fuel.
The latest development is increasing costs, disrupting flights and creating concerns about operational safety and sustainability.
According to Reuters, the persistent scarcity of jet fuel has triggered widespread operational challenges, including flight delays, route adjustments and extended crew duty periods, as airlines struggle to manage schedules amid rising costs.
According to the President of the association, Captain Bunmi Gindeh, the fuel shortages were pushing crews beyond planned limits, increasing fatigue and potentially eroding safety margins in an industry governed by strict rest regulations.
According to local carrier Rano Air, it revealed that jet fuel prices had more than quadrupled, as well as made some routes commercially unsustainable, forcing operational adjustments.
Other carriers have also begun rescheduling or cancelling flights and cutting unprofitable routes, industry sources cited by Reuters said.
This comes at a difficult time for Nigeria’s aviation sector, already strained by foreign-exchange volatility, high aircraft maintenance costs, airport infrastructure strains and fuel price swings.
Airlines group, Airline Operators of Nigeria (AON), last month threatened to suspend operations over what they described as crippling and artificially inflated jet fuel prices.
Nigeria’s airline industry carries millions of passengers annually across an extensive domestic network and plays a critical role in connecting cities where road travel is often slow or insecure, making reliable air services economically and socially important.
The publication reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said fuel prices would not be capped, adding that any decisions on deregulated products would be formally communicated.
The crisis is worsening existing problems in Nigeria’s aviation sector, including forex instability, expensive aircraft maintenance and weak infrastructure.
Travel/Tourism
FG Unveils Leasing Initiative to Cut Airlines’ Fleet Acquisition Costs
By Adedapo Adesanya
The federal government has approved the establishment of a national aircraft leasing company aimed at easing access to modern fleets for domestic airlines and transforming aviation financing in Nigeria.
The minister of aviation and aerospace development, Mr Festus Keyamo, announced the decision after a meeting of the Federal Executive Council (FEC), describing the move as a significant shift in how Nigerian carriers will acquire and finance aircraft.
Mr Keyamo said the proposed company would operate as a private-sector-driven Special Purpose Vehicle (SPV) with government backing.
“This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa,” he said.
According to the minister, the new platform will allow airlines to source aircraft through a centralised system, replacing the current model where operators negotiate individually with international lessors, often at higher costs and stricter terms.
Mr Keyamo noted that the government’s role would be largely supportive, providing sovereign guarantees to boost investor confidence, while private sector players drive the project.
“Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security,” he added.
The initiative, he said, has already begun attracting interest from both local and international investors, signalling early confidence in its viability.
Beyond supporting Nigerian carriers, the leasing company is also expected to extend services across West Africa and the broader continent, positioning Nigeria as a regional hub for aircraft leasing.
Airlines in Nigeria have come into focus in recent weeks due to renewed concerns over the financial sustainability of operators, which almost forced them to suspend operations last month. However, the Bola Tinubu-led government approved a 30 per cent relief on debts owed by local airlines to aviation agencies and ordered talks involving fuel marketers, airlines, and regulators to reach a fair jet fuel price.
Travel/Tourism
Passengers to Enjoy Starlink Wi-Fi on Emirates’ Flagship A380
By Aduragbemi Omiyale
Air travellers flying through Emirates will enjoy Starlink Wi-Fi onboard after the completion of the installation of the internet service on the company’s flagship A380.
The introduction of Starlink on the A380 builds on Emirates’ ongoing investment into redefining the customer journey, including one of the most ambitious retrofit programmes in aviation history.
The airline operator recently test-run this on a flight to Dubai, and it allowed passengers to enjoy seamless broadband while flying at 40,000 feet.
The Emirates A380 was one of the first commercial aircraft in the world to offer internet to its customers, with first-generation systems offering a total aircraft bandwidth of less than 1 Mbps. The installation and certification were accomplished in Newquay, UK.
With more A380s scheduled for accelerated installation throughout 2026, Emirates customers will soon enjoy a transformative leap in onboard connectivity with the ability to stream, game, browse, and work throughout their journey on personal devices.
The service will be complimentary for all customers, across all cabins, with easy sign-up and access. Future enhancements will include Live TV streaming over Starlink, initially on personal devices and later integrated into seatback screens.
So far, more than 650,000 Emirates customers have already flown on Starlink‑equipped flights, experiencing the benefits of next‑generation onboard connectivity firsthand.
As the world’s largest passenger aircraft, the A380 presents unique engineering challenges and opportunities. This industry-first Starlink configuration is designed to meet the demands of the A380’s ‘double-decker’ layout and high passenger capacity and is capable of delivering more than 2 Gbps of total aircraft bandwidth across the cabin.
Compared with the Emirates Boeing 777, the Emirates A380 features additional wireless access points and a third antenna to deliver an enhanced connectivity experience for its higher passenger capacity. Optimised inter‑deck integration supports a seamless Wi‑Fi experience, with customers able to enjoy high speeds depending on usage and device capability.
Starlink installations will soon begin at Emirates Engineering facilities in Dubai to accelerate deployment across the fleet.
Emirates is committed to bringing the best possible connectivity to its entire fleet at the earliest opportunity, with 25 Boeing 777-300ER aircraft already equipped with Starlink and the first A380 now joining service.
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