Milking the business traveller, growing the economy

As the festive season draws near in parts of the world where beautiful sunshine is a year-long luxury, the tendency for executives to live out of suitcases and tastefully furnished hotel rooms as they traipze the globe closing very important business deals before the year comes to an end is at an all time high.

The sheer thought of having room service at one’s beck and call with amazing landscapes to explore after a hard day of back to back meetings gives a jitter of excitment, adventure and more importantly, raises the drive for even greater money-making.

Yet while most simply focus on signing the dotted lines of corporate white paper, an intense look at the structure which makes all the travelling and hob-nobbing possible reveals a burgeoning multi-billion dollar hospitality industry in full swing: a major source of income that remains untapped in-country.

Research conducted by the World Travel and Tourism Council shows that in the last one year, this sector has barely contibuted a value share of 1.5 percent to the total Gross Dometic Product (GDP) of the nation.

This is relatively low in comparism with Brazil which has almost the same environmental conditions as Nigeria and generated 9.5 percent to its GDP in the same time frame; an exponential rise from the value of 8.8 percent in 2008.

Also Mexico, in spite of its dangerous reputation for arms dealing and smuggling, delights in having tourism as the fifth biggest source of economic revenue.

According to a report by JPMorgan Chase & Co., in 2013 alone, this industry generated $12.7 billion in foreign exchange inflows for the spanish speaking State which received a record of 24 million international visitors despite the fact that over 6,200 people were killed there in drug related crimes over the same period.

With Nigeria struggling to swim out of the fiscal quagmire associated with the slide in the naira and over-dependence on oil for revenue, experts state that transforming the abundant gift of nature with its exotic landscapes into a marketable tool is another source of stable, diversified income; in addition to agriculture and luxury goods taxation.

Bemoaning the neglect of a sector with such immense potential, a director at the Nigeria Tourism Development Corporation, NTDC, who wants to be identified as Chris said, “What we are experiencing at a time like this is sad. It is not that many of the people in government do not know what to do but the truth is that there are so many bad eggs around that will do anything to make sure great ideas do not materialize.

“Most of us are tired of talking. We sit down and meet and agree on a project that we will embark on to move the industry forward but by the time we reach the execution stage, it is either the idea is swept under the carpet or the money budgeted for the thing fizzles into thing air and this is sad,” he concluded.

While exploring alternative regional economic opportunities, relaxing laws that impede the participation of indigenous and foreing investors may be essential.

Mr. Onofiok Ekong, the president of the Hotel Owners Association of Nigeria, while addressing newsmen stated that the pattern of enforcing multiple taxes on companies operating within the nation’s hospitality sector contributes adversely to the high fees charged by its proprietors, which in turn discourages customer patronage, affects the growth of the industry and stiffles the expansion of the tourism industry.

The vast array of taxes they are mandated to pay, according to the association president, include “the consumption tax, value added tax, company income tax, withholding tax, health certificate, and waste operation permit.”

Others are vehicle emission fee, contravention charges, business premises and administrative charges for environmental audit.

Highlightening channels government can focus on for growing tourism investments, Frank Okodua, a stakeholder in the travel and tours industry said, “The good thing about Nigeria is that most of its tourist sites do not need too much work to get them functioning properly. Unlike Dubai and other United Arab Emirate countries where they literally need to create the attraction, ours is ready to be used.
“If government can just pick 20 out of the over 100 marked tourist sites that has been suggested by many professionals and then play up the presence of beautiful beaches and mangroove swamps that will help. They can also trun the north into a desert safari region especially around the festivals like Argungu festival.

“In the middle belt, blending the rich culture of the indigenoues tribes like the Tiv and Jukun with the large hills and confluence point in Ajaokuta can also create awareness for that area and draw huge crowds if they do it properly,” he said.

For busy business executives who are constantly on the move, always stressed out and forever seeking means of relaxation, creating the opportunity for them to unwind at a sizeable cost may just be the trigger to help the economy regain momentum…just saying.

Rita Ohai