If well harnessed, Nigeria’s hotel business is expected to rake in $507 million into Nigeria’s economy in the next four years.
But this will be subject to meeting some conditionality, which an international business outfit, PricewaterhouseCoopers (PwC), has in its assessment report on tourism and hospitality, called for concerted efforts to explore.
It says the sector has the potential to add to the growth of the country’s economy in the nearest future.
It said: “Hotel room revenue is expected to grow to 507 million dollars in 2020 from the 321 million dollars achieved in 2015, due to increases in both stay unit nights and average room rates.
“The hotel market in each country is affected by both the local and global economy, with some countries being more dependent on foreign visitors than the others.
In the past five years, there has been a consistent growth in number of hotels in Nigeria, jumping from 45 to 60 per cent between 2010 and 2015, which has been despite challenges of the economy.
Also, form 1999 through 2002, the number of five-star hotels rose from 10 to 17, while privatisation of the sector, which saw government selling its equity holdings in major hotels attracted more investment in the sector.
Thus, by 2010, there was a quantum growth with private concerns attracting international hotel outfits into Nigeria.
The report also said that the tourism and hospitality businesses contributed to job-growth of about 10 per cent and still has potentials for further inputs in other sub-sectors of the economy.
According to the report, there are a number of new hotels under construction which led to a forecast of an additional 4,700 rooms to be added in Nigeria in the next five years.
The anticipated growth of revenue from the industry will be based on planned increases in both stay unit nights and average room rates.
However, the growth forecast will further depend on security and promotion of business modules to attract both tourists and foreign investors in the next five years.
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