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

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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.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Travel/Tourism

Shipping Giant Hapag-Lloyd Opens 5th African Office in Kenya

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Hapag-Lloyd

By Adedapo Adesanya

Shipping giant, Hapag-Lloyd, as part of its expansion in Africa, has opened a new office in Kenya.

While the main business will be managed from the port city of Mombasa, the company will also have an office in Nairobi, the country’s capital.

Hapag-Lloyd mainly transports agricultural goods out of Kenya, especially tea, coffee, fruits and textiles. The imports primarily consist of chemicals, foodstuffs and a wide range of goods made of plastic or rubber.

The new office will be headed by Country Manager Prashant Sindhwani and the establishment will see 19 staff members work in Mombasa, six in Nairobi and one in Uganda.

Via the gateway port of Mombasa, the shipping company offers two different services: the China Kenya Express Service (CKX) will connect Kenya with some of the most important ports in Asia, such as Singapore and Shanghai while the East Africa Service (EAS2) connects the East African country with the west coast of India and Jebel Ali in Dubai, the United Arab Emirates (UAE).

Speaking on this, Mr Dheeraj Bhatia, Senior Managing Director Region Middle East at Hapag-Lloyd said, “Kenya is the economic hub of East Africa and the most important growth region on the continent.

“By opening our new office in Kenya, we expect to continue our robust growth on the African continent.”

Hapag-Lloyd also serves landlocked East African countries such as Uganda, Rwanda, Burundi and South Sudan, with regular inland connections to and from Mombasa.

As part of its growth strategy, the shipping company will endeavour to develop inland connections to Somalia, Southern Ethiopia and Northern Tanzania.

On this, Mr Rolf Habben Jansen, Chief Executive Officer at Hapag-Lloyd explained that “Our Strategy 2023 focuses not only on becoming the number one for quality but also on selected growth markets worldwide.

“We see an enormous growth potential in Africa and will further invest in our services and selected countries.”

In a congratulatory note, German Ambassador to Kenya, Mrs Annett Günther, wished Hapag-Lloyd all the best with their new presence in Kenya.

She noted, “Kenya as a regional and continental hub for trade relies on strong and efficient logistics service providers.

“Hapag-Lloyd has been serving the region for many years, so it is a logical step, and a good sign for the business community in Kenya, that they are now establishing a permanent presence in Mombasa and Nairobi.”

With the opening of the new office in Kenya, Hapag-Lloyd now has own five offices on the continent in South Africa, Egypt, Ghana, Nigeria and Kenya. Additionally, Hapag-Lloyd recently opened its Quality Service Center in Mauritius.

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NAAPE Decries Non-Payment of Pensions, Tackles AMCON

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sack pilots NAAPE

By Ahmed Rahma

The National Association of Aircraft Pilots and Engineers (NAAPE) has called on the Asset Management Corporation of Nigeria (AMCON) to pay no fewer than 50 of its members in Aero Contractors redundancy benefits, having declared them since 2016.

This call was made by the president of NAAPE, Mr Abednego Galadima, during a chat with newsmen over the weekend in Lagos.

He said some of the challenges in the industry include non-remittance of pension deducted from its members, explaining how these will become thorny issues in the not too distant future.

Mr Galadima decried how the staff of Aero have suffered and how whatever was accrual to them since 2016 may have lost value having gone through recession twice and inflation countless times.

“The issue of the redundancy benefit payment of Aero Contractors has lingered too long, as you may recall, Aero is under receivership and they rendered people redundant since 2016.

“We are still battling to see that our members are paid their benefits. The time value for money has already been lost; I want to call on AMCON to see that this money is immediately paid so that these Nigerians would go home and get on with their lives,” he said

“To be fair with you, we know we have over 50 workers but the total money so far is still being calculated.

“The Aero management reneged on their commitment to giving every worker a letter communicating to him what is due to him so we can’t provide that figure.

“The airline itself has done its calculation but they have not communicated what each category is entitled to, based on what the union agreed with those affected since 2016,” the president stated.

On issues of non-remittance of deducted pension funds, the NAAPE president drew the attention of employers in the aviation industry to the negative trend explaining that if these funds are not remitted, it would amass and the employers would not be able to pay, stressing that it is another challenge waiting to rear its head in the no distant future.

He said, “We also want you to publicize some of the challenges NAAPE is having, particularly in the areas of pension. Employers, most of the operators in this industry do not pay deducted pensions of their staff as at when due. And you know as a worker, you always look forward to retirement and that is what we normally fall back on.

“Most of the private operators still owe staff, especially our members’ pensions; they deduct and not remit. We want them to be sensitized to know that this is not right, and by the time they accumulate it, it becomes very difficult for them to pay.”

AMCON took over Aero Contractors in February 2016 and in March 2017, the airline issued redundancy to over 60 per cent of its staff which saw endless days of union activities and according to NAAPE, up till now, no staff declared redundant has been paid.

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FAAN Temporarily Shuts Lagos Airport Runway

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Lagos Airport Runway

By Ahmed Rahma

The Federal Airports Authority of Nigeria (FAAN) has announced the temporary closure of Runway 18R/36L at the Murtala Mohammed International Airport (MMIA), Lagos.

According to a statement on Tuesday, signed by the General Manager of Corporate Affairs, Mrs Henrietta Yakubu, the closure was due to a landing incident.

“The closure is due to a landing incident involving a Boeing 737 Azman Air aircraft with registration 5N SYS, and flight number ZQ2325. The aircraft had a tyre burst after landing on this runway,” FAAN said.

The agency added that all passengers and crew on board the aircraft were safely evacuated and officials of FAAN Air Rescue and Fire Fighting Services, are working to ensure the aircraft is towed out of the runway, so as to restore normalcy.

“The Federal Airports Authority of Nigeria hereby announces a temporary closure of Runway 18R/36L at the Murtala Mohammed Airport, Lagos.

“All passengers and crew onboard the aircraft were safely evacuated at 1908 hours, and officials of FAAN Air Rescue and Fire Fighting Services, AIB, and NAHCO are already working to ensure the aircraft is towed out of the runway, so as to restore normalcy,” the statement read.

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United Nigeria Airlines Commences Operations Friday

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United Nigeria Airlines

By Dipo Olowookere

All is now set for the inaugural flight of United Nigeria Airlines as the management has confirmed that the company will begin operations on Friday, February 12, 2021.

According to the organisation’s Head of Corporate Communications, Mr Achilleus-Chud Uchegbu, the inaugural flight will be conducted with an EMB145 aircraft.

He further disclosed that the flight will depart Lagos through the domestic wing of the Murtala Mohammed International Airport (MM2), Ikeja and then land at the Akanu Ibiam International Airport Enugu.

Mr Uchegbu further said the aircraft will thereafter leave Enugu to the Nnamdi Azikiwe International Airport in Abuja before making a return to Lagos.

He said adequate preparations have been made for a smooth journey through the different routes, noting that the company was ready to put a smile on the faces of passengers.

The image-maker of United Nigeria Airlines expressed confidence that the company will transform the way people fly, assuring that they will get value for their money and trust in the firm.

He said, for now, the airline will carry out regular daily flight operations to Lagos, Abuja, Asaba, Enugu, with Port Harcourt and Owerri to follow very soon.

United Nigeria Airlines, after fulfilling all mandatory regulatory requirements, was issued an Air Operators Certificate (AOC) by the Nigerian Civil Aviation Authority (NCAA), enabling it to begin flight domestic operations.

Business Post gathered from reports that United Nigeria Airlines is owned by a billionaire businessman, Mr Obiorah Okonkwo. The airline is operated by Private Airlines Services Limited.

The company aims to become the most efficient airline operator in Nigeria and increase its assets and investments to support the development of its services for regional and international operations and then build good reputation in the aviation sector and become a strategic player in the industry, globally.

United Nigeria Airlines is coming on board at a time the aviation industry is struggling to get back on its feet as a result of the devastating blow it was dealt with by COVID-19, which forced governments across the globe to restrict the movement of people.

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NSE Lauds Transcorp Hotel’s Desire for Sustained Growth

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Transcorp Hotels

By Aduragbemi Omiyale

The board and management of Transcorp Hotel Plc have been commended for their “commitment towards the sustained growth of this reputable brand.”

This applause was given by the CEO of the Nigerian Stock Exchange (NSE), Mr Oscar Onyema, last week at the listing of the company’s rights issue on the trading platform of the bourse.

Transcorp Hotels listed additional 2,642,124,511 ordinary shares valued at N10 billion on the NSE last Thursday, while the CEO of the firm, Mrs Dupe Olushola, was honoured with the closing gong ceremony.

At the event, Mr Onyema noted that the 99.3 per cent subscription level recorded by the exercise showed the confidence investors have in the organisation despite the prevailing macro-economic challenges.

“I congratulate the board and management of Transcorp Hotel’s plc for their laudable commitment towards the sustained growth of this reputable brand.

“Transcorp Hotels Plc’s successful capital raise with a rights issue of 2,642,124,511 additional ordinary shares which was 99.3 per cent subscribed despite the prevailing macro-economic challenges is highly commendable.

“At the exchange, we remain committed to providing issuers with a platform that allows them to meet their strategic business objectives and it is our delight to see listed companies take full advantage of the NSE’s products and services to support their growth trajectory,” Mr Onyema said.

In her remarks, the MD of Transcorp Hotels thanked the NSE, shareholders and others for the successful completion of the N10 billion rights issue.

“The past year has been a challenging one given the impact of the COVID-19 pandemic on the hospitality sector, and that Transcorp Hotels has not only survived but is firmly on the road to recovery is a testament of the efficacy of our initiatives and we thank you for your belief ins us,” she said.

Mrs Olushola noted that, “Moving forward, we are optimistic about 2021 and we have begun the year in a strong position. We will continue to deepen our share and expand our market leveraging best in class technology and providing the highest service standard across our locations.”

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7 Must-Visit Places in Nigeria

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Nigeria Must-Visit Places

Nigeria is a country with the largest population on the African continent. While this nation is crowded, it has limitless attractions to offer to tourists.

Tropical rainforests, exotic beaches, scenic waterfalls, natural springs, structures of historical significance, and national parks. Indeed, there are many untapped travel destinations that you can find in Nigeria.

So, for the avid traveller, you shouldn’t forget to visit Nigeria while you’re in Africa. Here are the best places that you can see and experience in the country.

Ikogosi Cold and Warm Spring

In Ikogosi, a town in the state of Ekiti, there’s a natural tourist attraction where you can find warm and cold springs. This place is one of the best spots for experiencing the beauty of Nature. To add to this natural wonder, the scenic topography and verdant trees around the area also satisfy your senses.

There’s a resort that has been built around the warm and cold springs that cater to tourists who want to relax, eat, and stay the night.

Tarkwa Bay Beach

Tarkwa Bay Beach is located near Lagos Harbor. The hospitable locals there warmly welcome tourists who want to enjoy various kinds of water sports and activities. Although it’s a public beach, the place has a relatively smaller number of crowds compared to other public beaches in Lagos.

You can take your friends, family, and lover to Tarkwa Beach. Visit it during weekdays so that you won’t encounter a huge crowd.

Osun Sacred Grove

A UNESCO World Heritage site, Osun Sacred Grove is a must-see tourist attraction in Nigeria. Locals and foreigners venerate this sacred forest due to its mysterious and wonderful atmosphere.

According to the Yoruba people, this sacred forest is where their goddess of fertility, Osun, is taking abode. While walking along the trails in Osun Sacred Grove, you will see statues and shrines built for the deities of the Yoruba people. There’s also a festival celebrated every year to pay homage to Osun.

Obudu Cattle Ranch

Situated on the picturesque Obudu Plateau, the Obudu Cattle Ranch is a place you should include in your itinerary when you visit Nigeria. The ranch has semi-temperate weather, a calming atmosphere, and an attractive landscape.

For accommodations, you can rent a room or hut on the ranch. While it’s open for tourists throughout the year, it’s better to visit the place between October and February. Don’t forget to send Flow top-up to your friends and family so that you can stay connected with them.

Yankari Games Reserve

Located in Bauchi State, the Yankari Games Reserve is a place where you can find different species of animals and plants. There are also caves in the area if you want some good old spelunking activity.

You can also find wells with interconnecting shafts used by slaves during the transatlantic slave trade era. The Yankari Games Reserve also features crystal clear warm springs where you can relax and enjoy in peace.

Kano City Walls

While it’s undeniable that the city of Kano is already taken over by modernity, you can still find remnants of its being the centre for commerce during the trans-Saharan trade era. One proof of this is the brown-mud walls protecting the city from invasion during that time.

Besides the city walls, there are mud houses that are constructed by the Hausa people. The marriage of old and modern influences create a unique ambiance to the city. Kano is a must-visit place if you want to be taken back to the old Nigeria.

Zuma Rock

Zuma Rock is among the most well-known tourist attractions in Nigeria. It’s a massive natural monolith – standing at 980 feet – that has a feature resembling a human face. There are myths and legends concerning this rock. For instance, the Zuba people see the mountains surrounding it as paying homage to the rock by maintaining a great distance from it.

You can climb or hike to the top of the rock and have a panoramic view of the city of Abuja. If you’re not into climbing, you can take a picture of this magnificent natural structure below. It’s best to visit it between April and October to catch sight of the most talked-about Zuma Rock Fire phenomenon.

Takeaway

Nigeria has many tourist attractions to offer to visitors. You can go to the Kano City Walls, Yankari Games Reserve, Obudu Cattle Ranch, Zuma Rock, Osun Sacred Grove, Tarkwa Bay Beach, and Ikogosi Cold and Warm Springs if you want a spectacular travel experience in this country.

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