The continuously change in Nigerian market takes its toll on several different market sectors. For the last couple of years, we have seen a surge of unemployment along with the shutdown of many businesses in Nigeria due to the unfavorable business climate and subsequently the outbreak of covid19.
1 area that is, however, on the continuous growth, is the tourism and travel sector of Nigeria. This sector, as of october 2019 amounted to 2.9% of the country’s GDP, and it has improved ever since. PWC reported a 20% increase in overall space revenue from 2019, much greater than the projected growth.
Record also demonstrates that Africa received 69 million international tourist arrivals in 2019, to record a 8% increase in 68 million arrivals in 2019 and 59 million in 2017. This gradual increase is attributed to the affordability and ease of traveling, particularly within the continent, with spending among national travelers accounting for 56 per cent compared to 44 percent global expenditure. Furthermore, leisure travel remains an important element of Africa’s tourism sector, taking up a majority 71 per cent of the tourist expenditure in 2019.
Meanwhile, the PWC Hospitality outlook: 2019-2023, suggests that overall room revenue in South Africa, Nigeria, Mauritius, Kenya and Tanzania rose 7.4 percent in 2018up from the 1.9 per cent rise in 2017, principally reflecting a 28 percentage point turnaround Kenya, a 15.4 percentage point turnaround in Tanzania, in addition to a 7.2 percentage point improvement in Nigeria. Mauritius continued to rise at double-digit prices in 2018, but room earnings growth in South Africa fell to just 0.5 percent.
A couple of factors are responsible for the development in the sector within the continent, with Internet penetration being one of them. Available statistics show that penetration from the continent has gone up from 27.7 percent in 2017 to 35.2% in 2018. With over 453 million Web users, the growth of mobile technology is certain. In most countries the penetration of Internet is well above 50 percent and this is a promising number for resorts to invest in mobile technology. A number of issues, such as online bookings, booking confirmations, drive notifications, guest comments requests, guest reviews, and so much more could be tackled effectively, so. Though Africa has a long way to go, there is still enough extent to make the most of the Present situation
Meanwhile, for the last two decades or so, tech adoption in the hospitality market has been on the upswing. Particularly in the past decade, many disruptions have changed the way hotels function. Right CRMs from replacing booking registers to keep reservation logs, into kiosks replacing guest-facing staff to boost check-in and checkout procedures, several improvements have happened in the technological perspective. And yet, It Seems as if we’re just starting getting started
The report also demonstrate an increase in both foreign and domestic traveler numbers, together with an expansion in many hotel chains on the continent, which strengthens the hotel sector’s potential for expansion.
“Tourism to the African continent has turned out to be resilient in the face of economic and political instability, impacts of droughts and other regulatory changes. The chances are aplenty for this particular business to enjoy further growth albeit at a more modest pace. However, since we continue to determine there are also lots of challenges facing every country. This is an industry that’s reactive to the smallest shift in political, regulatory, security and sustainability issues,” Pietro Calicchio, hospitality sector leader for PwC Southern Africa, said in a statement.
States like Nigeria and other a sub-Saharan countries like South Africa,Tunisia,Cote d’Ivoire are booming with tourism and adventure sites and is a breeding ground for global business seekers. It suffices to state that the hospitality industry is here to stay in Nigeria and other African countries.
Even though there is a marketplace for the hospitality industry to flourish, the housing of the industry (hotels, inns, motels, serviced flats etc.) is often plagued with different operational issues. Customer satisfaction is critical to the survival of the resort industry and this business thrives on it. Clients flock in and outside of your centers based on your ratings and their experience, and that is why the word “hospitality” meaning the friendly and generous reception and entertainment of guests, visitors, or strangers.
Local hoteliers struggle to meet industry standards to make sure their customers are satisfied and to compete against multinational hotels swooping into the nation. Section of customer satisfaction lies in controlling the understanding and expectations of your clients and ensuring customer satisfaction. This is the reason the bulk of a hotel’s revenue is allocated to providing quality bedding and bath linens which remain durable.
Some hoteliers run the path of importation but are plagued by obstacles from the uncertainty of the importation and exportation policies. Products imported, together with the rigorous policies involving, most times aren’t a reflection of the value in terms of quality hoteliers would get.
This gap in the business allows for the provision of the support.
Companies such as E’Sorae Luxury close the gap by catering to the hospitality enterprise. Making a business out of the need, the CEO Mr Ewaen Sorae who started by providing quality bedding and bath linens to people has since put up a mill and production that cuts across the terrains of Nigeria, especially to appeal to the hospitality industry and other corporations needing its services.
“What I have found out is that hoteliers frequently don’t possess a secure and dependable source for bedding and bath solutions. I found that this was a huge need in the industry and we decided to install our production unit to fulfill this gap. Since then we’ve experienced a rapid increase in hotel clients that confessed our services were essential to the flow of their surgeries” states MrSorae.
The creation and supply of bedding fill in the gap which exists in surgeries of the hospitality market. Moreso, creating factories in Nigeria empowers the Nigerian workforce and generates jobs in the country which subsequently has a huge economic impact on the country.
We are seeing a surge in the hospitality industry demand for more hotel rooms and far better customer experience. There’s work to be done in raising customer retention and satisfaction to meet the requirements of the fast-paced industry. The aggressive Raise in the industry generates high demands that ultimately have to be fulfilled by hoteliers who want to remain in the business.