The global oil price slump has forced the Federal Government to resort to austerity measures. Experts have called on the government to market tourism to enhance economic development beyond the national mono-product economy, using the Osun State example for tourism marketing, writes ADEDEJI ADEMIGBUJI.
With the plunge in the crude oil price in the international market,stakeholders have asked governments at all levels to look beyond oil and reposition the tourism industry for global competitiveness. The call was made at this year’s Brand Journalists Conference, which held in Osun State with the theme: “Tourism Marketing as Catalyst for Economic Development”.
As the major source of revenue, crude oil prices have been on the decline globally, since June, nearing $83 per barrel, down to about $32, or 28 per cent from its high point earlier in the year. The Bonny Light, Nigeria’s reference crude, is being sold at about $83 per barrel. This has forced the government to announce austerity measure with the Minister of Finance and the Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, saying the country would from this month, start to feel the impact of the falling global oil prices.
She noted that the country needed to prepare for tougher times ahead by reviewing its expenditures and building economic buffers through budgets that would be based on modest oil prices.
However, stakeholders at the conference were of the opinion that this measure could have been avoided if tourism marketing had been taken serious by governments at all levels.
The Nigerian Guild of Editors’ President, Mr. Femi Adesina, said the failure of the government to heed the clarion call on diversifying the nation’s economy by promoting tourism is one of the reasons behind the effect of oil price slump on the nation’s economy.
“For years, running into decades, tourism has been identified as one of the veritable alternatives to oil as a major revenue earner for the country. Many countries of the world do not have natural resources, and depend largely on earnings from tourism. Israel, despite being beleaguered politically and surrounded by hostile neighbors, thrives on the marketing of its historical sites. All year round, tourists and pilgrims troop into Israel to visit sites venerated and considered holy by the major religions of the world,” he said.
Citing the potential of the sector to boost the gross domestic product (GDP), he revealed that between 2003 and 2004, Australia’s inbound tourism consumption to GDP was $7.6 billion. “The same happens in many other countries of the world. But here in Nigeria, our potentials lie fallow, dormant and in most cases, untapped,” he explained.
Adesina noted that some of the major barriers the government has allowed against tourism marketing are poor infrastructure, insecurity, poor health care and lack of political will to use oil proceeds to develop tourism in the country.
As a result, Osun State Commissioner for Home Affairs, Culture & Tourism, Omo-Oba Adetona Sikiru Ayedun said many of the barriers have led to diminished economic growth, reduced profitability in the travel and tourism sub-sectors, which many more countries are seriously adopting as a viable development option for income generation.
He said the state government led by Ogbeni Rauf Aregbesola has set the target of N15bilion revenue from tourism by next year.
He said: “Our vision is to tap into over $3 trillion revenue available globally through tourism. The Osun State government led by Ogbeni Adesoji Rauf Aregbesola targets N15 billion revenue from tourism by 2015. This projection is technically and consciously proved by our robust gains and interrelationship with tourism and culturally endowed nations like Cuba.”
While addressing these challenges, he said the state government has aggressively improved infrastructures such as roads, power and security after a tour of Cuba where the government got exposed to the idea of marketing of tourism. “Our business visitation to Cuba has exposed us to ideas on how tourism and culture could be promoted as revenue earners for Osun State in particular and Nigeria in general. This is what we are doing and we are reaping benefits from the actions,” he said.
The state Commissioner for Information and Strategy, Sunday Akere said some countries rely solely on tourism as the bedrock of their economy hence, the need for government to look beyond the curse of oil and market tourism as new economy driver.
In repositioning a place as a tourism destination, Adesina, however, suggested certain critical factors that could be called irreducible minimums. They include:
Marketing strategy
Akere asked rhetorically: “Does as an army go to war without first formulating a strategy to combat the enemy? Does a soccer team enter the pitch for a competitive game without a strategy to rout the opponent? Does a pilot get into the airspace without first having a flight plan? So, can you not also reposition tourism destination without marketing strategy? How do we do it? When? Where? To which end? Who are the people that will do it? What are the resources needed? What are the tools to employ?”
Adesina said all these are germane questions critical to finding answers to the challenges of marketing tourism. “But as said earlier, Nigeria is not lacking in recommendations and theoretical frameworks. A lot of them have been codified and outlined over the years, but are gathering dust in the shelves of our ministries, agencies and parastatals. Now is the time to dust them up, update them, and begin to run with the vision. But definitively, we must formulate what should be our national strategy for repositioning Nigeria as tourism destination,” he noted.
Asking government to employ push and pull marketing strategy, Adesina said government should find out what motivates tourists in their choices of destination. “These are called the push and pull factors, and Nigeria must necessarily take care of them, if she would take her place as one of the world’s favorite tourism destinations,” he explained.
According to him, some of those push and pull factors include infractructure, security, cost and political stability.
Infrastructure
“Do we have the roads, the hotels, the tourist sites, the airline services, the water transport, and other means of mass transport that can support tourism? These Nigerian roads that have become death traps? Roads where you spend hours on end for journeys that should just take about half an hour? An airline industry where flights are delayed endlessly, or cancelled whimsically ‘due to operational reasons?’ Or waterways where ferries capsize at frightful intervals? All these are infrastructure that support tourism, and to move forward, Nigeria must devote a large chunk of its annual budgets to infrastructure upgrade,” Adesina said.
Security
He continued: “Can there ever be tourism in the face of massive insecurity characterised by insurgency, kidnappings, robberies on highways, and murders? Not at all. The tourist wants rest, recreation, relaxation, fun, and an experience of a lifetime. But he does not want to lose his life in the process. As long as Nigeria fails to solve the insecurity problem, so long will the tourism Eldorado elude her. Reports of insecurity, particularly of terrorism and kidnappings, elicit international attention. And Nigeria has a surfeit of those kind of reports now. It will affect our fortunes as a tourism destination, no matter how hard we market ourselves. Get security right, and the tourists will flock in.”
Cost
While noting that tourists want rest and relaxation, but they do not want to pay an arm and leg for it, Adesina said “costs of goods and services are rather prohibitive in Nigeria, compared to other countries on the continent, and even in the world”.
He said despite the rebasing of Nigeria’s economy and rated as the largest in Africa, the impact on goods and services is still fetched. “Do you notice that our top hotels perhaps, charge the highest rates in the world? Do a comparative study, and you would see the truth in it. The tourist wants quality, but at reasonable prices. Some families save round the year, in order to take a holiday. Should they then land in the debtors’ prison after the holiday, because they have been completely fleeced of their earnings? For Nigeria to compete as a global tourism destination, government must work harder to keep the economy on an even keel, so that prices of goods and services can be stable, and within reach,” Adeshina explained.
Political stability
With political instability posing a threat to tourism growth, Adesina said it will be foolhardy for any tourist to visit a crisis-proned tourism destination such as Nigeria. He said: “Which tourist wants to visit a country in turmoil, or one that could disintegrate at the next hour? Not many. Which tourist wants to visit a country where lawmakers are seen on global TV being tear-gassed, and scaling dangerous fences to get access into parliament? Which tourist wants to visit a country where elections are followed by flares of violence, with many lying dead in the streets?” he asked, warning that Nigeria must get her politics right. “It has grave implications for tourism,” he warned.
He, however, said “when tourists get all the above and more, what you get is loyalty, and return visits,” there will also be massive recommendations to other people, which will drive up traffic. “There is nothing better than a fulfilled tourist,” Adesina added.
Why reposition?
As oil prices continue to decline at the international market with global competitiveness in tourism sector across the globe, Adesina said it is a must for the Nigerian government to reposition tourism as a catalyst for economic development.
“Why reposition? Is it by force? Well, it is by force. Without repositioning, we will not get the best that is possible from our tourism. There is now increasing worldwide competition, with each country putting its best tourism foot forward. Also, we must reposition because the preferences of tourists keep changing. What you offered a year or two ago may not suffice for today or tomorrow,” he said.
Again, we must reposition because having a fixed image would not promote a destination effectively. That is why the world’s greatest brands keep coming out with different types of advertisements and promotions. Repositioning allows you to rejuvenate your tourism destination. It also allows you to know your client, his needs, motives, drives, purchasing behavior, and how you can respond appropriately,” he concluded.
