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The recession has been the buzzword in the Nigerian economic sphere over the last 18 months. There hasn’t been much faith in government policies by the populace, but there seems to be an unshakable faith in the Nigerian economy by investors. In the hospitality industry, more Nigerians, it seems, are embracing tourism within the country,  and are paying more attention to natural sites of wonder and splendor. From the floating lakes in the west, to the ancient caves in the east, forsaking the man-made spectacle of the jewel in the Arabian Desert. Lagos, for instance, has plans to be a world-class tourist destination. Hotel Chain, Starwood Hotels and Resorts are opening up 3(three) of its Four Points Brands across the country in Ibadan, Ikot Ekpene and Benin. Hilton is also expanding. Marriott International is not being left out with 5 establishments been planned between 2017 and 2018. Maybe even more ambitious are long term plans for Hotels to open up in 2025, such as the 150-Room Marriott Hotel for Lagos Victoria Island, and the 200 Rooms Residence Inn by Marriott Abuja billed for 2022. Like Francois Baudin, the Senior VP Development, Fairmont Raffles says, “Despite current economic challenges in Nigeria, we are still keen on developing further our brands in Lagos and Abuja as we see a sustainable growth in demand”. For Hotel booking portals such as Jumia Travel, the game is changing rapidly. The Business changed name from Jovago in 2016 to Jumia Travel and is widening its scope of business to include vacations packages and flights. “More hotels in the space means more business for us. It means more choices for the business traveler who are the core of our customer base and it means more competition in the industry to provide marginally better services to win the customer among the hotels.” Says Kushal Dutta, Managing Director of Jumia Travel. With global Hotel Chains building 5 Star Resorts and Hotels across the country, what does it mean for the budget traveler who is constantly seeking out cheap hotels in the business destinations of Lagos, Abuja, Port Harcourt and Calabar? The Nigerian market space is interesting. The entrant of a big player doesn’t necessarily kill the smaller ones. Hotel owners and managers would continue to respond by reacting and adapting. As many of them have done by slightly increasing prices. It isn’t far-fetched to walk into a hotel reception and see a notice announcing an increase in room rates. Increasing cost of diesel is a constant refrain. But also is an inflation of over 18%. Hotel booking portals such as afore-mentioned Jumia Travel are constantly locked horns with hotel managers to get the lowest rates possible to win over customers. Nigeria still remains a great place to do business. Despite the obvious challenges. Its teeming numbers, its energetic population, and its abundant resources still make it an investor’s haven. “It’s a clear sign, that if more hotels are opening up, that more business is being done here. The financial crises would only be a distant memory soon.” Kelly Akpomediaye, a real estate developer says. With these hotels set to open up in the coming years and months, jobs are bound to come with it. But while it is nothing near the 15 million new jobs promised by the current government as it hopes to reverse its economic fortunes, it remains no doubt a metric, that Nigeria is open for business, and constantly too.
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This article was first published on 29th June 2017

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