Nigeria's hospitality industry expects 2.4% growth

Image: blog.ng.jovago.com

According to figures released by the National Bureau of Statistics, the Nigerian economy - which advanced 5.94% in the last quarter of 2014 - has experienced an expansion rate of 3.96% year-on-year in the first three months of 2015.

With lower contributions from the oil and gas sector limiting the government's financial flexibility, higher demands for alternative funding to support state allocations have fuelled the call for the diversification of the sub-sector. On the backdrop of this development, policy reforms geared towards increasing internally generated cash flow from service sectors such as the travel and tourism are undergoing deliberations on the floor of the national assembly.

As a result, greater foreign direct investments (FDI) in the sector, in spite of the currency exchange differential is spurring the development of urgently needed infrastructure. In 2014 alone, monetary receipts from visitor exports accrued a total of N108.8bn at 0.8% as the World Bank partners with domestic investors and other stakeholders in a $12bn hotel construction deal.

Cash base

With a cash base of N1.56 trillion as direct contributions to GDP, derived from the out-going financial year serving as leverage for the local investments, analysts predict three straight quarters of strategic growth by 8.3% for the hospitality industry; a figure that will hit a treble in ten years.

Highlighting the benefits of this dynamic for e-commerce, Marek Zmyslowski, MD of Jovago Nigeria said, "We are excited that the industry is growing and promoting the hospitality industry through the quality of services we offer as an e-commerce business is what we are committed to do at Jovago. At present, no other company in our sector is offering this brand promise and we are positive this boost in tourism will be sustainable for the country."

As Nigeria's position as the fastest growing commercial hub expands, there has been a surge in demand for luxury hotel rooms in key trade cities driving regional and inbound international aviation traffic. With calls for the demutualisation of access to the vast land and mineral resources across the country gains momentum, Nigeria inches closer to being the pivot for trans-national air travel in Africa.