The global hotel industry continues to present growth opportunities especially in line with technological advancement and rising awareness of the role of the hospitality industry in the broader economy. In Nigeria, Africa’s largest economy in terms of GDP (US$376.2bn) as at 2017, the tourism sector has been hindered by lack of attention from the relevant authorities. However, in 2017, the Nigerian Tourism Development Authority (NTDA) was established to revamp and promote the country as a domestic and international tourist destination
for leisure and business.
In 2017, Lagos and Accra were the cities with most occupancy growth rates in Africa (compared to Cape Town and Lusaka in 2016). Data shows that hotels close to the airport had the highest occupancy rates due to interstate travel, as over 70.0% of hotel bookings in Nigeria are from local business travel. Thus, 3 and 4-star hotel chains close to the airport with select services for local travellers have better chances of success.
Another opportunity lies in lower budget hotels for local and foreign travellers, especially long-stay guests. A clear example here is the Airbnb model where guests can reside in a host facility for affordable fees. However, the adoption of this in some regions is pushing small hotels out of business.