Success
Damian:
Although boasting a lot of potential, Nigeria’s
travel and tourism industry has remained in a state of near-misses and failed
projections occasioned by the glaring gap and huge vacuum in the online travel
booking space.
According to available statistics, the direct contribution
of Travel and Tourism to Nigeria’s Gross Domestic Product (GDP) was N2,29bn,
approximately 1.9% of total GDP in 2017 – a figure that is expected to
rise by 2.9% in 2018 and 4.3% per annum from 2018-2028, to N3,605.7bn,
effectively representing 1.9% of total GDP in 2028.
On the other hand, the total contribution of Travel
and Tourism to GDP was N6,205.8bn representing 5.1% of GDP in 2017 and is
forecast to rise by 1.6% in 2018 and 4.8% per annum to N10,094.5bn from
2018-2018, representing 5.4% of GDP in 2028.
While the figures appear promising, it is worth
considering where the Nigerian travel industry stands in the global scheme of
things.
Ranked on a global list of 185 countries, Nigeria
presently stands at positions 48 in total contribution and 163 in relative
contribution respectively to GDP from the Travel and Tourism sector. In terms
of expected real growth in the sector, Nigeria stands at a poorly 168 position
and 59 in long-term growth forecast (2018-2028) in the sector.
Compared with global indices, Travel and Tourism
represents 10.4% of global GDP while one-tenth of jobs worldwide are supported
by the industry, representing 9.9% of global employment. Furthermore, one-fifth
of all of all global net jobs created in the last decade have been within the
Travel and Tourism sector.
It is an open secret that travel and tourism is an
important global economic activity, with the potential to contribute
significantly to a nation’s GDP. Added to this is the immense
employment-generation opportunity it holds when harnessed efficiently – a point
aptly embellished by Gloria Guevara Manzo, President & CEO of the World
Travel & Tourism Council when she enthused that “inclusive growth and
ensuring a future with quality jobs are the concerns of governments everywhere.
Travel & Tourism, which already supports one in every ten jobs on the
planet, is a dynamic engine of employment opportunity.”
Here in Nigeria, the engine of economic prosperity
inherent in the Travel and Tourism is yet to be unleashed, owing predominantly
to the vacuum in the online travel booking space which holds the key to
transforming the sector.
In real terms, only a small proportion (about 13%)
of Nigerian air travelers currently book travel products online – a damning
statistic for a country boasting a population grossing over 190 million.
For the four components of the Travel and Tourism
sector which include Leisure travel (inbound and domestic), Business travel, Domestic
travel and Foreign travel, the outlook remains the same: total contribution of
the sector to GDP is nearly three times greater than its direct contribution.
Aligned to this is the poor experience of most
Nigerians, many of whom have expressed their dissatisfaction with the level of
service in the online travel booking space, despite the existence of a glut of
players. For many corporate travelers, a segment that represents the
overwhelming majority of online travel service consumers, the prevailing
opinion is a glaring lack of real value. Same sentiment dominates among leisure
travelers – many of whom are frustrated by sub-standard service and the limited
choices of packages/offers available among current players – two of the most
recurring pain-points that have drained confidence among customers in the
sector.
Considering the nexus between technology and
value-offerings in the online travel booking space, there is a growing need for
a strong player backed by cutting-edge technology to fill the vacuum in the
sector and take the industry to the next level. Further justifying this need is
the undoubted influence of a world-class online platform and innovation in
service delivery which has transformed the entire value chain of an allied
sector such as e-Commerce in Nigeria, as seen in the rise and dominance of
strong local players such as Konga which has re-defined the scope of offerings
and customer experience in the industry.
The global travel and tourism industry is a
multi-billion-dollar establishment which relies heavily on innovative
technology and world-class customer experience in delivering a wide range of
value offerings to all classes of travelers.
Nigeria is due for this disruption which has the
potential of growing the sector’s contribution to GDP. Digital innovation is
the way forward.
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