Reviewed Investor's Guide 2006

Investor’s Guide 2006 – HOSPITALITY SECTOR

HOSPITALITY AND TOURISM INDUSTRY

The Tourism Policy of the Federal Government of Nigeria as initiated by the Nigerian Tourism Development Corporation Acts of 1992 is for the industry to contribute meaningfully to the wealth-creation efforts of the nation and its citizens, largely through foreign exchange-generation and employment-creation, while providing interesting hospitable and worthwhile experience for visitors. Tourism administration in Nigeria received a boost with the creation of the Federal Ministry of Culture and Tourism in 1999.This is in addition to the Nigerian Tourism Development Cooperation, the State Tourism Boards and Federation of Tourism Associations of Nigeria.

Nigeria is endowed with many tourist attractions.  They include:

  1. Game Reserves
  2. Water Falls
  3. Wild Life Parks
  4. Bar Beach, etc

There has been an increase in the inflow of tourists to Nigeria. Annual average growth rates of 17.5% and 5.3% have been recorded for a number of tourist arrivals and receipts respectively.

The hospitality industry is becoming increasingly global with the search for new markets and increased international travel, has an important requirement for players to develop a strong identity and promote recognizable brands in order to succeed.

There are many things in place in Nigeria, which are stimulating the growth of the hospitality business.  These include:

  • The new democratic environment in the country is increasing the size and growth of both foreign and local business travellers.
  • Government’s favourable policy towards foreign investment as well as encouragements to local entrepreneurs would spur growth in the hospitality industry.
  • Nigeria’s economic reforms have opened more business opportunities to foreign investors, thus strengthening business travels and boosting the demand for hospitality services.
  • The very dramatic political visibility of Nigeria in West and Pan -African affairs in generating sustained international interest in Nigeria.

The domestic air traffic between Abuja/Lagos and Lagos/Abuja is the highest in the country. There are nearly 20 local flights into Abuja on a daily basis. With more international flights into Abuja, hotel room nights demand by aircrew is expected to increase significantly.

There are about 650 hotels, motels, inns, and commercial guesthouses in Nigeria today. About 10% of these are of international standard, mostly concentrated in the Federal and States capitals including Hilton, Sheraton, Le Meridian etc.