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.
By Adedapo Adesanya
The Federal Airports Authority of Nigeria (FAAN) has announced plans to introduce V-Pass, a biometric facial recognition system designed to make passenger processing faster, safer and more seamless across its domestic airports.
According to FAAN, the new technology will allow passengers to verify their identities through facial recognition after a one-time enrolment, reducing reliance on physical identification documents and shortening queues through automated electronic gates.
The authority said the system is expected to enhance airport security while improving the overall travel experience for domestic passengers.
FAAN added that V-Pass has been developed with data privacy at its core and is compliant with the Nigeria Data Protection Regulation (NDPR).
The agency described the initiative as part of its commitment to delivering smarter, technology-driven airport services and said nationwide sensitisation and rollout updates would be announced in due course.
Airports in countries including the United States, the United Kingdom, Singapore and the United Arab Emirates already deploy facial recognition technology for processes such as check-in, security screening, immigration and boarding, so the move also aligns Nigeria’s aviation sector with a growing global trend towards contactless travel.
These systems have been adopted to improve operational efficiency, strengthen security and enhance the overall passenger experience.
For FAAN, the deployment of V-Pass forms part of its broader digital transformation agenda aimed at modernising airport operations and accommodating rising passenger traffic.
Experts say that beyond improving convenience, the authority expects the biometric platform to strengthen identity verification, reduce the risk of impersonation and support more efficient airport security, while maintaining compliance with data protection.
By Aduragbemi Omiyale
About 14.12 per cent stake in Ikeja Hotel Plc has been acquired by Honeywell Group Limited, a notice on the Nigerian Exchange (NGX) Limited has revealed.
Honeywell Group took up the part of the hospitality firm through one of its affiliates known as HGL Real Estate Limited.
Ikeja Hotel, in the disclosure filed with the NGX on July 2, 2026, said the stake comprised 305,323,525 units of its equities.
“Ikeja Hotel hereby notifies the Nigerian Exchange Limited and the general public that it has received notification from HGL Real Estate Limited, an affiliate of Honeywell Group Limited, that it has acquired 305,323,525 units of Ikeja Hotel Plc’s shares, representing 14.12 per cent shareholding in the company,” the notice stated.
Ikeja Hotel is one of Nigeria’s leading hospitality investment and hotel management companies with premium hospitality assets.
It operates two leading hospitality organisations in Lagos, the Sheraton Lagos Hotel and Balmoral Convention Centre.
By Aduragbemi Omiyale
About 10 hospitality establishments, including hotels and restaurants, were sealed on Wednesday by officials of the Lagos State Environmental Protection Agency (LASEPA).
The affected businesses are located in different locations in the Alimosho Local Government Area of the metropolis, Business Post learned from a statement from the agency.
It was stated that they were sealed by LASEPA for persistent violations of environmental regulations despite repeated warnings, abatement notices, and several opportunities to comply with the agency’s directives.
According to the notice, the enforcement exercise was carried out in line with the directives of the Lagos State government to ensure strict compliance with environmental laws and to safeguard public health.
The affected facilities were said to have breached various environmental regulations, including noise pollution, air pollution, unlawful discharge of untreated effluent, obstruction of official duties, among others.
LASEPA closed the premises of Granduer Meridian at Obasa Akiniyi Street, Oluwaga, Ipaja for non-compliance with the agency’s directives; Lasola (Spazio Bar), located on Ipaja Road, Fatolu Bus Stop, Ipaja, was sealed for noise pollution and non-compliance with directives; Millennium Restaurant, located at Gate Bus Stop, Ipaja, Ayobo, was shut down for non-compliance with directives; O2 Exquisite Suites & Tower on Jimoh Akinremi Street, Jimoh Bus Stop, Akowonjo, was sealed for non-compliance with directives; and Chirozz Hotel & Suites, located on Samuel Street, Akowonjo, by Vulcanizer Bus Stop, Egbeda, was closed for noise pollution and non-compliance with directives.
In addition, House 7 Hotel, located at Remi Akande Street, Egbeda, was sealed for non-compliance with LASEPA’s directives; House 48 on Isiba Oluwo Street, Egbeda, was sealed for non-compliance with directives; Exclusive Hotel, located at Ishan Kimishe, Akesan Bus Stop, was shut down by non-compliance with directives; Sabola Ventures Limited, Iocated at Km 11, LASU–Isheri Road, Igando, was shut down for operating without evidence of an Effluent Treatment Plant (ETP), and discharging untreated effluent into public drains; and City Int’l Motel, located at Chief Olu-Adegbite Street, off Oladun Street, Council Bus Stop, Idimu, was sealed for non-compliance with directives.
