Is The Nigerian Hospitality Industry Attractive?

ImageImage

The hospitality industry can be categorized under the service industry and refers to the provision of lodging services, restaurants, event planning, theme parks, transpor-tation, cruise line, and additional fields within the tourism industry. The world over, hospitality industry has provided high yields in returns to investors, being an important part of development and economic emergence and attractiveness.

As the world continues on its recovery path, the Nigerian Market has seen an influx of international brands, as well as expansion and additions of more rooms in the al-ready established hotels. As expected, security is a major determining factor for these often experienced investors, therefore, the favourite destinations are Lagos, Port Har-court, Abuja, Calabar and Enugu.

Indeed, Nigeria’s macroeconomic expectations bodes well with a continued ex-pansion in this sector over the immediate to medium term. According to a report by W Hospitality group, Nigeria has 7,500 rooms under contract for 2013 only and has been experiencing a visible growth trend over the last three years.

We hereby present an analysis of the Nigerian hospitality industry’s attractiveness based on Porter’s five forces for discerning investors.

A. THREAT OF NEW ENTRANTS

An industry is attractive if there are entry barriers that reduce the rate at which new entrants can spring up. We believe that entry barrier is high for the hospitality industry, as it is capital intensive and has become more technology driven than was previously required in the industry. Hence, this factor has increased the attractiveness of the Nigerian Hospitality Industry. 

B. COMPETITORS’ RIVALRY

A high level of rivalry within an industry has led to ‘price war’ among the current players. This has in turn increase the cost of doing business and put downward pressure on margins and profitability. Though the hospitality industry has a large number of competitors with very low customer loyalty and low switching costs, these issues do not decrease the attractiveness of the industry. We believe rivalry can be effectively managed through quality differentiation, innovative technology, style and exquisite service delivery. 

C. SUPPLIERS’ POWER

When an industry’s suppliers have bargaining power, they dictate price which will in turn reduce margins of the industry players. The suppliers to the hospitality industry are numerous and can easily be replaced, hence are unable to exert any significant power on the industry players. This makes the industry very attractive for prospective investors. 

D. BUYERS’ POWER

In the hospitality industry, customers are afforded a variety of options based on costs, quality of service, product categories, and special offers. Indeed, the customers’ power is high, which ordinarily should make the industry less attractive however, due to the seasonality of the hospitality business, customer can only meaningfully take advantage during off-peak period. However, in peak seasons like December, when the demand for hospitality industry services is high, the customers’ power is low, giving the firm an opportunity to set prices and increase profits, recovering most of the off-peak short falls.

Overall, we consider the buyer’s power on the industry to be average. 

OVERALL SUMMARY:

Based on our analysis of the industry, we consider the industry to be an extremely attractive one for prospective investors. The only known alternative for the industry under review is squatting with relatives, which has proven to be more expensive qualitatively. Therefore, the industry scored seven (7) out of ten (10) on our in-house industry attractiveness grid. Abuja, Calabar and Lagos remain the most viable places for establishing a hospitality related business.

SAY NO CAMPAIGN, CENTRE FOR DEMOCRACY & DEVELOPMENT, BREKETE FAMILY RADIO and OPEN SOCIETY INITIATIVE FOR WEST AFRICA

Originally posted on totesphere's Blog:

SAY NO CAMPAIGN, CENTRE FOR DEMOCRACY & DEVELOPMENT, BREKETE FAMILY RADIO  and OPEN SOCIETY INITIATIVE FOR WEST AFRICA

We are taking an exception to blog about this…. Please share with every Nigerian/kindly help publisize this drive……

Image

In the wake of March 15, 2014 about 20 job applicants were killed in a stampede in some recruitment centres across the country. In the Federal Capital Territory, over 68,000 job applicants were invited to the 60,000 capacity stadium for the botched recruitment exercise. The stampede that resulted in the death of 20 job applicants is reported to have been occasioned by poor planning and negligence on the part of the Ministry of Interior and Immigration service.

The Lives lost and the indignity experienced by applicants are issues that must be treated with utmost importance because a life lost today is termination of a significant generation and a line of national wealth. Every indignity…

View original 291 more words

SAY NO CAMPAIGN, CENTRE FOR DEMOCRACY & DEVELOPMENT, BREKETE FAMILY RADIO and OPEN SOCIETY INITIATIVE FOR WEST AFRICA

SAY NO CAMPAIGN, CENTRE FOR DEMOCRACY & DEVELOPMENT, BREKETE FAMILY RADIO  and OPEN SOCIETY INITIATIVE FOR WEST AFRICA

We are taking an exception to blog about this…. Please share with every Nigerian/kindly help publisize this drive……

Image

In the wake of March 15, 2014 about 20 job applicants were killed in a stampede in some recruitment centres across the country. In the Federal Capital Territory, over 68,000 job applicants were invited to the 60,000 capacity stadium for the botched recruitment exercise. The stampede that resulted in the death of 20 job applicants is reported to have been occasioned by poor planning and negligence on the part of the Ministry of Interior and Immigration service.

The Lives lost and the indignity experienced by applicants are issues that must be treated with utmost importance because a life lost today is termination of a significant generation and a line of national wealth. Every indignity suffered by a Nigerian is a threat to the dignity of every Nigerian.

In a bid to ensure accountability and stem the tide of impunity in Nigeria, the Say No Campaign, Centre for Democracy and Development, Brekete Family and Open Society Initiative for West Africa will on Wednesday, April 16, 2014 at Denis Hotel, Abuja by 9:00am host a Public Hearing on the #NISstampede with the aim of achieving the following objectives;

  1. To gather facts and document experiences of applicants that participated in the recruitment exercise;
  2. To unravel the facts surrounding the involvement of the NIS and the Ministry of Interior in the Stampede;
  3. To demand public accountability and justice for the victims of the recruitment exercise especially those who lost their lives and sustained injuries;
  4. To make recommendations on how to prevent reoccurrence of such incidents and ways of tackling unemployment in Nigeria.

The public hearing is meant for all participants of the recruitment exercise, youth, students, government institutions, media, international community etc. Accredited participants will be expected to make oral or written submission at the public hearing.

The incidence of March 15, 2014 is a clarion call to citizens to rise up to active citizenship by exercising their sovereignty in the demand for good governance, accountability and dignity of the human person. Conveners of the Public Hearing are committed to this process and will consistently engage all relevant platforms to ensure that the issues surrounding the recruitment exercise and the resultant effect of the #NISstampede are followed to a logical conclusion.

Join us as we Say No to Injustice and lack of accountability of our State Institutions and Government. God bless Nigeria.

RSVP

+234 8060763786, 8076501990,  8035939886

You can also purchase a free ticket via this link: https://www.eventbrite.co.uk/e/citizens-public-hearing-on-the-nigerian-immigration-recruitment-exercise-stampede-tickets-11166903509?aff=affiliate1

Baking Cinnamon Cake 101

Ingredients:
2 cups all-purpose flour
1 tablespoon baking powder
1 teaspoon ground cinnamon
3/4 teaspoon salt
2/3 cup shortening
1 1/3 cups white sugar
1 1/2 teaspoons vanilla extract
3 eggs
2/3 cup milk
1/2 cup white sugar
6 tablespoons butter
1/3 cup water
1 teaspoon vanilla extract
3/4 teaspoon ground cinnamon

Directions

Preheat oven to 350 degrees F (175 degrees C).
Grease and lightly flour a 10 inch Bundt pan.
Stir together the flour, baking powder, 1 teaspoon ground cinnamon and salt; set aside.

In a large bowl, beat shortening (butter), 1 1/3 cups white sugar and 1 1/2 teaspoon vanilla until light and fluffy.

Add eggs one at a time, beating for at least 1 minute after each egg.

Beat in the flour mixture alternately with the milk. Pour batter into prepared pan.

Bake in the preheated oven for 35 to 45 minutes, or until a toothpick inserted into the center of the cake comes out clean.

Let cool in pan for 10 minutes, then turn out onto a wire rack. Remove cake from pan while it is still warm, and poke holes around the top of the cake with a fork. Pour the warm cinnamon syrup into the holes and onto the top and sides of the cake.

P.S.. To Make Cinnamon Syrup: In a saucepan, combine 1/2 cup white sugar, butter, water, 1 teaspoon vanilla and 3/4 teaspoons ground cinnamon. Heat and stir until butter melts.

Try it and you will certainly enjoy it.. Have a lovely week Y’all…

Welcome to the Nigerian Post Office, Wuse Zone 3

The Nigerian Post Office in Abuja definitely needs a facelift, you should imagine they will have a budget or at least someone ensuring that the premises is kept in pristine condition.

It is laughable that a huge pile of refuse welcomes you to the Nigerian Postal Service premises. We should take care of our public properties more, pictures below:

Welcome to the Nigerian Post Office, Wuse Zone 3

The Nigerian Post Office in Abuja definitely needs a facelift, you should imagine they will have a budget or at least someone ensuring that the premises is kept in pristine condition.

It is laughable that a huge pile of refuse welcomes you to the Nigerian Postal Service premises. We should take care of our public properties more, pictures below:

A Case Of Nigerian Agip Oil Company and A Global Recruitment Scam Alert

This is a recruitment scam alert story reported by Bob Sterricker, it is interesting and informative. Please Read…

I saw a listing on Global Recruitment Inc website and pasted my CV/details for a position with the Nigeria Agip Oil Company.
Then I got this: “With the approval of the Management of Nigeria Agip Oil Company, we are delighted to formally offer you the Employment to work with Nigeria Agip Oil Company for the provision of Expatriates Relation Services for the period duly specified in your Offer Letter. Please find attached a Copy of your Employment Letter for your perusal and immediate action if the terms of work are acceptable to you. Upon thorough review and acceptance of this Employment Package, dot your signature in the space indicated in the last page of the Offer Letter and return same back to us via email attachment within a period of 7 days. It was an email sent from chrisobh@agipng.net who I believe is a fraudster.

Why I Think It’s a Scam The original email was not on letterhead paper
The employment letter had no telephone number on for Agip

The job was given without an interview

The job is full pay for 4 weeks on and 4 weeks off

They wanted me to buy expatriate medical insurance. It is only available in Nigeria and all other policies are not valid

I called a few times with different name and he always answered “yo, hello”, not very good for someone from an HR department.

I stated that I have expatriate health insurance already and he would not accept it.

I asked the contact number for the medical clinic so I can introduce myself as I like to speak to my future manager just to say hello, Chris refused and he could not give me any other Agip numbers

The expatriate medical details forms I was sent from Fortress Insurance PLC were full of typing errors.

I asked for a company brochure since he had been doing this medical cover for over 10 year and he ignored my request. He offered a 2 year cover policy ( which happens to be time of my potential work)

Advice
1. Avoid the company
2. Avoid people without headed emails
3. Ask unusual questions. Ask to speak to another rep from the office
4. Check the address on google earth so you can see if it is actually there.
5. Do not be tempted into any job where you have to buy medical insurance as part of the job
6. Ring the individual up using internet, or other numbers
7. Check out websites reporting scams. You will see template letters very close to the one you will get
8. A dream job with fantastic pay without an interview is just that — a dream.
9. Be careful- they are all scum!

Be warned people are out to feed on our desperation… Never pay for anything when trying to secure employment..