LCCI laments underdevelopment of tourism sector
President, Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, has lamented the wasting potential of the country’s tourism sector, which he said if well developed, can drive the economy and significantly drive the country’s economic diversification and foreign exchange (FX) earnings.
Speaking at a seminar organised by the Hotel and Tourism Group of the chamber, he noted that tourism and hospitality have emerged globally as key economic drivers, contributing not only to GDP but also to employment, cultural preservation and FX earnings.
He regretted that despite Nigeria’s rich cultural heritage, vast landscape and entrepreneurial population, the country’s tourism remains under-leveraged.
“According to the World Travel and Tourism Council (WTTC), Africa’s tourism sector contributed about $168 billion to GDP in 2023, accounting for 6.9 per cent of the continent’s economy. Nigeria contributed just $5 billion, less than three per cent of our GDP, compared to 10 per cent in Kenya and 8.6 per cent in South Africa,” he said.
Lamenting the dearth of critical infrastructure such as roads, airports, intercity transport and power, he said the factors are detrimental to a modern tourism economy.
More importantly, he cited insecurity as a major challenge as the international perception of Nigeria as unsafe significantly hinders inbound tourists. He added that a 2023 Statista report showed that 47 per cent of tourists cited safety concerns as their top deterrent from coming to Nigeria.
“Policy environment lacks cohesion; tourism governance is fragmented across all levels, often with conflicting regulations and duplicated efforts. Meanwhile, the human capital base is underdeveloped. Less than 30 per cent of tourism workers have formal training, leading to service quality gaps.
“In addition, global marketing footprint is non-existent. While Rwanda, South Africa and Ghana run aggressive international campaigns, Nigeria has no unified tourism brand or digital strategy to showcase our unique assets. These deficiencies collectively undermine the potential of a sector that should be a top FX earner and employment generator,” he said.
To reverse the trend, he noted, infrastructure must be improved; security and perception must be tackled; governance reforms must be enacted by creating a national tourism council under the Presidency to harmonise policies and streamline investment approvals.
“If Nigeria increases tourism’s GDP share to just five per cent in five years, we can generate over two million new jobs. Ghana’s ‘Year of Return’ campaign in 2019 attracted 1.1 million tourists and earned $1.9 billion – proof that strategic diaspora engagement yields substantial returns,” he said.
He urged the government to launch a five-year tourism development blueprint, the private sector to invest in tourism infrastructure and experiences and the media to reframe the national narrative.
In his keynote address, the Executive Director of the West Africa Tourism Organisation (WATO), Hassan Zakari, said though the sector is riddled with challenges, it presents an opportunity for growth.
Calling for better policy and regulatory frameworks, he said it would take effort not only from the government and private sector but also from businesses and communities to fix the issues in the sector and reposition it for greatness.
At a panel featuring industry leaders and experts including the general manager, DEEs Travels and Tour Investment Limited, Daisi Olotu; Director of sales and marketing, Eko Hotels and Suites, Iyadunni Gbadebo; Zakari and a professor at Atiba University, Wasiu Babalola, it was agreed that opportunities abound in the sector.
Olotu decried the plethora of laws, levies and taxes, saying it is weighing down the players. He also said laws and policies are either not well defined, communicated poorly or changed overnight.
Gbadebo listed scarcity of good local talent, turbulent government policies and unnecessary bottlenecks as major challenges. She added that getting support either from the government or private sector as an entrepreneur is almost impossible.
While Babalola urged the government to simply create a sustainable environment for the sector to thrive, Olotu noted that government remains the biggest obstacle to the sector’s development.
