UNWTO: Nigeria, Others Spend on Tourism Will Hit $261.77bn by 2050

Ugo Aliogo

A report by the United Nations World Tourism Organization (UNWTO) Tourism has projected consumer spending on tourism, hospitality and recreation will reach about $261.77 billion by 2025.

The report revealed that tourism generated $11.7 billion and created 9.1 million direct jobs within the sector in 2022.

Also, the 2023 Hotel and Hospitality Industry Confidence Index indicated expanding number of hotels across Africa.

In the same vein, Statista has forecasted an average annual growth rate of 8.68 per cent over the next five years and hotel market revenue of $13.80billion by 2027.

Speaking at the Pyne-NESG Africa Conference, which organised by organised by Pyne Hospitality and Zigona Advisory, in collaboration with the Nigerian Economic Summit Group (NESG) with the theme: “Tourism in Africa: Catalyst for Accelerated Economic Empowerment,” the President of the Aircraft and Owners Pilot Association of Nigeria (AOPA), Dr. Alex Nwuba, said on a sub-regional basis, tourism contributes most to East Africa’s gross domestic products (GDP) (5.5 per cent), followed by Southern Africa (3.4 per cent) and West Africa (2 per cent), with tourism contributing just 1.7 per cent to Central Africa’s GDP.

He also noted that the sector accounts for almost half of all service exports in Sub-Sahara African (SSA) (49.7 per cent), adding that Southern Africa receives almost 40 percent of all the tourist receipts ($13 billion per year), of which 91per cent go to South Africa.

He remarked that in East Africa, Kenya, Mauritius and Tanzania receive over $1 billion in tourist receipts, noting that In West Africa, Ghana and Nigeria are the biggest tourism earners accounting for 60 per cent of all sub regional receipts.

Also speaking at the conference, the Malawian Minister for Tourism, Vera Kamtukule, said Africa needs to redefine and change the trajectory of what tourism should be and focus more on authenticity and rely on themselves.

Kamtukule added: “We need to inculcate a culture of celebrating ourselves. There is no one sitting in their offices outside the walls of this continent that is thinking about elevating us they are actually thinking about how to exploit us. So, we need to start doing these things. The second thing that I want to highlight is that we need to get rid of predatory marketing which puts one African country as the angel and another country as a demon. We will say oh, don’t go to Nigeria because it is not safe to go to Nigeria, but go to another country. We need to get rid of that.”

Earlier in his remarks, the Board Member, Nigeria Economic Summit Group (NESG), Mr. Udeme Ufot, said the conference is coming at a time when continental economic integration is a critical focus in lieu of the advent of AfCFTA that guarantees free movement of persons, goods, capital and services, thus ensuring that intra-African tourism is now fully enabled and all efforts should be made to drive tourist traffic across the continent, and seamlessly too, adding that negotiation of all relevant tourism Protocols should be concluded speedily.

Udeme added: “The theme of this year’s conference is apt, as evidence abounds from other continents as to how the tourism sector has been a tool for economic empowerment, especially for the women and youth segment, before and after the COVID-19 pandemic. Indeed, the rising contribution of the tourism sector to the GDP of African nations is evident, resulting in Nigeria creating a separate Ministry of Tourism for the first time in history.”

In her remarks, the Thematic Lead for Tourism and Hospitality Industries Thematic Group, NESG, Mrs. Ngozi Ngoka, said one in 4 new jobs was created by the sector, making tourism and hospitality the best partner for governments to generate employment.

She also stated that for every job created in the core tourism industry, around 1.5 extra, indirect jobs are created in the wider tourism related economies, adding that the sector contributed about 7.7 percent to global GDP in 2022.

According to her, “The global tourism industry, which blends the lodging, food, beverages, attractions, cultural, and travel industries, is the world’s largest industry ecosystem.

“Tourism and Hospitality generated 295 million jobs globally representing 6% of workforce in 2022, employing a higher share of youth and women than any other sector of the global economy. The Sectors are priority for the United Nation’s AGENDA 2030, Sustainable Development Goals, and Goals 8, 12 and 14 for national and international development.”