How much is Nigeria’s tourism market worth? $4billion, says the Nigerian Tourism Development Corporation (NTDC) Director-General, Mrs Sally Mbanefo. She notes that the market has a lot of growth potential. If well developed tourism can become a major revenue earner for Nigeria that relies on oil. Assistant Editor (Arts) OZOLUA UHAKHEME writes.
Tourism has a lot of prospect. A country like Nigeria stands to gain if it develops its tourism potential instead of relying solely on oil as its major revenue earner. Nigeria’s domestic market is worth US$ 4billion, according to the Director-General of Nigerian Tourism Development Corporation (NTDC), Mrs Sally Mbanefo.
With the right environment, she says, Nigeria would be able to cater for the Diaspora market estimated at US$3billion yearly.
The sector, Mrs Mbanefo notes, plays a major role in balancing sustainable development, adding that if effectively harnessed, it can generate net benefits for the poor. Mrs Mbanefo went on: “It is an important tool in promoting economic growth, alleviating poverty, job creation, and contributing to national development goals.”
She spoke at this year’s Nigeria Tourism Investors Forum and Exhibitions organised by the Federation of Tourism Associations of Nigeria (FTAN), in collaboration with the Federal Ministry of Tourism, Culture and National Orientation and the Federal Capital Territory Administration (FCTA) in Abuja last week.
Speaking on Promoting domestic tourism: Tool for national economic development, Mrs Mbanefo said recent data show that current global tourism contributions to GDP is approaching US$ 7 trillion, accounting for 9.3 per cent of total global GDP and that the industry accounts for 8.7 per cent of global employment with an estimated annual growth rate of 2.4 per cent. According to her, many developing countries have managed to increase their participation in the global economy through the development of tourism, saying it is increasingly being viewed as an important tool in promoting economic growth, alleviating poverty and job creation.
Nigeria, Mrs Mbanefo said, is not left out in this global trend. Domestically, the tourism market also has very high revenue and job creation potentials. The NTDC D-G cited various instances of the immense economic benefit of tourism from Nigeria’s festivals and carnival of international acclaimed, saying: “In 2013 Osun Osogbo festival recorded 21,713 domestic tourists including, 123 international tourists while N58,230, 170 formed the expenditure. Abuja Carnival (2013) recorded 19,015 domestic tourists, which include 113 international tourists while N147, 385,250 formed the expenditure. Religious tourism recorded over a million domestic tourists and a substantial number of international tourists in 2013.”
While urging that the industry economic potentials be harnessed with a view of enhancing its contributions to GDP, she called for better infrastructure, increased funding from the government, the need to implement the 2007 Tourism Master Plan, improving travel security as a necessary condition for growing both domestic and international tourist traffic in Nigeria.
She said: “It is, therefore, estimated that, we have a US$ 4 billion domestic tourist market. Similarly, the size of the Diaspora market is estimated at US $3 billion annually should we provide them with the right environment considering the volatility of oil revenues which is currently a major source of the nation’s revenue. To overcome some inherent socio-economic challenges in the sector, there is need to have good access roads to the various tourist destinations, review the Land Use Act to enable private sector access land for development of tourist sites, corporate and multinational organisation should adopt tourist sites for development, resolve multiple taxation for tourism operators and establish a Tourism Development Fund (TDF).
“To reposition NTDC, there is need for proper training of the corporation staff, regular collaboration with the private sector operators in forging new ideas for the sector, effective marketing and promotion of Nigeria locally to boost domestic tourism, collaborating with other government agencies such as the National Commission for Museums and Monuments, National Park Service among others and encouraging and assisting non-profit organisations operating within the travel and tourism industry.”
However, tourism promotion, she said, cannot be done alone by government and its agencies because there are specific areas of tourism development that requires certain skills and interests that are not within government.
She said: “We must develop domestic tourism, not just for paid travelers alone, but leisure infrastructure in our various communities for citizens who cannot afford to travel. Therefore, I am appealing to big businesses and individuals to adopt tourist sites and develop them as part of their contributions to the development of domestic tourism in Nigeria.”
Stakeholders also called for the harmonisation and integration of multiple taxes and levies in tourism sector, saying it would boost the growth of domestic and international tourist traffic in the country.
Minister of State, Federal Capital Territory, Oloye Olajumoke Akinjide and Director-General, said the ministry should set up a multi-agency committee in partnership with the private sector and other stakeholders in tourism sector to explore ways of harmonising and integrating all levies, charges and taxes. The committee is to come up with investor’s friendly recommendations, which may include initiating changes through the appropriate legal processes to bring about a desirable framework.
She said tourism potential of FCT can only be harnessed through a committed partnership between the public and private sector where the players in each sector will have a full understanding of their respective roles or functions.
The minister, who was represented by a director in the ministry, Mrs Adebola Elegbede, stated that the FCT administration is committed to working in partnership with the investors and other stakeholders in providing conducive and enabling environment to promote tourism in the FCT Area and in the country.
“We are beckoning on both public and private investors, event promoters and travel planners to invest and bring in tourists and organize more meetings, conferences, shows, fairs and exhibitions in the city as more critical facilities and good security network are being put in place,” she said.
She disclosed that Emirate Airlines will commence flight operations to Abuja beginning from August 1, which she said, would boost tourism industry.
President of FTAN, Chief Tomi AKingbogun observed that the effect of security challenges in less than 3 per cent of Nigeria’s land mass has resulted in decrease of about 50 per cent in tourism patronage. He identified lack of patronage from government as one critical setback, noting that government rather than patronise established businesses go into construction of massive economically unsustainable projects thereby competing with existing business.
He observed that there are too many foreign trips by government officials as consultants are often appointed to take civil servants outside the country for training, which can be done locally. “The preferred locations are Dubai, UK, South America etc. Millions in foreign exchange (otherwise required for manufacturing) are allocated as estacode benefit to participants. If the trip is embarked upon, officials go on shopping spree and do not attend the training. This trend not only kill the Nigerian tourism industry, but also deplete our foreign reserves,” Akingbogun said.
Among participants that took stand at the exhibition were Bayelsa State, Rivers State, Hotel Rosebud, Nigerian Tourism Development Corporation, Infogem, Owambe.com, National Film and Video Censor Board, Ethiopian Airline, NIHOTOUR, Hopesea, Abuja Enterprise Agency and La Campagne Beach Resort.
