Is The Nigerian Hospitality Industry Attractive?

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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.

Apply, Apply: Washinghton Fellowship 2014

APLICATION DEADLINE: 12:00 MIDNIGHT EASTERN STANDARD TIME MONDAY JANUARY 27, 2014

The Washington Fellowship is the flagship program of President Obama’s Young African Leaders Initiative.

President Obama launched YALI in 2010 to support young African leaders as they spur growth and prosperity, strengthen democratic governance, and enhance peace and security across Africa. The Washington Fellowship, which begins in 2014, will bring 500 young leaders to the United States each year for academic coursework and leadership training and will create unique opportunities in Africa for Fellows to put new skills to practical use in leading organizations, communities, and countries.

The online application for the Washington Fellowship is currently available. Completed applications, including all supporting documents, are due by 12:00 midnight Eastern Standard Time, January 27, 2014. All applications must be submitted via the online application system. The application instructions provide detailed information regarding the financial provisions of the fellowship, eligibility and selection criteria for the program, and details on applying.

Please read the application instructions carefully prior to beginning the application. We recommend printing these instructions and referring to them while completing the application.

If you have questions about the application, please email washingtonfellowship@irex.org
Participating countries: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of the Congo (DRC), Republic of the Congo, Cote d’Ivoire, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gabon, The Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, South Sudan, Sudan, Swaziland, Tanzania, Togo, Uganda, Zambia, and Zimbabwe.

Apply here (copy and paste link to URL)- https://yaliapp.irex.org/Logon

Develop The Nigerian Tourism Industry

The so-called commitment of the Nigerian government to developing the tourism industry to help diversify the economy should be met with skepticism. The recent claim to a commitment to develop our economy through tourism isn’t new and has been pushed around with every new administration. Despite the huge potential tourism in Nigeria has and the revenue and jobs it will definitely provide the Nigerian government (Federal and State) will only be paying lip service for the foreseeable future, Why? Well because it is not oil, we don’t have visionary leaders and to develop tourism you will need to work harder for probably less revenue than oil brings in.

It does not require a genius to appreciate the enormous tourism resources that Nigeria is endowed with but the wisdom and the will to exploit them as mentioned are forever lacking. The opportunities are unbelievable: Land mass, naturally occurring structures, a large population of diverse peoples, a wide range of cultures with attendant ceremonies, festivals, cuisines, artifacts and crafts, whew!

I mean if the Osun festival in oshogbo, the Ojude Oba festival in Ogun State, Kwanghir masquerade festival in Benue state, through to the Argungu Fishing Festival in Sokoto State, to the Calabar Dance Festival and the Igboukwu festivals were better managed Nigeria will be a different place. Foreigners are always looking for new places to go for the love of Christ. Instead of wasting millions on stupid bullet proof cars for aviation ministers, we can invest in those festivals for one. Make it more organised, increase safety, develop the communities e.t.c. GOVERNMENT OF NIGERIA, all you need to do is to Provide INFRASTRUCture and your job is half done. It is called creating an enabling environment for US(Nigerians) to grow and we will pay back enough in tax to sustain infrastructural development (We the people promise today).lol!

It is perhaps important to note that a Nigerian Tourism Development Master Plan was developed and launched in 2006 by the Obasanjo administration with both funding and consultancy support of the United Nations and World Tourism Organisation. It has been reviewed and is said to be a thoroughly prepared 35 page working paper with a three phased action plan said to have the potential if judiciously implemented to radically transform the tourism industry by 2015.

According to reports though the tourism sector has seriously under-performed. In 2011 only 715,000 tourist came into the country, between 1995-2011, Nigeria’s highest earnings from tourism was a meager 688 million dollars in 2008. International tourism generated 0.72 per cent of Nigerias total export earnings in 2011, finally on the WTO rankings Nigeria is nowhere to be found on the top ten travel destinations in Africa.

So what does the Federal Government through the ministry of tourism do? Well more talk: Minister of Tourism talks about driving the Nigerian Project with ‘brand diplomacy’ or like you have seen on CNN ‘fascinating Nigeria project’ is the new slogan. Director General of N.T.D.C , Sally Mbanefo aims to grow the tourism sector into a 4 billion dollar industry. By establishing travel hubs as well as one stop tourism centers in the six geo-political zones.

So much for a the rhetoric of President Jonathans nebulous transformation agenda. They all should read the end of the third paragraph of this write up: FOCUS ON THE BASICS. Provide roads, electricity, water, tax system and an enabling business environment for locals and foreign investors to thrive Shikena!

If the government can focus on this and less on its proverbial ‘white elephant projects’ Nigeria will grow.

BOOM!

YOU WIN Business Competition

The Youwin Project Application for 2013 has commenced, Apply now.

The 2013 YouWIN Business competition is here once again, Apply Now

YouWiN – Youth Enterprise with Innovation in Nigeria – is an innovative business plan competition, by the federal government of Nigeria, aimed at job creation by encouraging and supporting aspiring entrepreneurial youth in Nigeria to develop and execute business ideas.
Click here to see Official procedure for application

https://www.youwin.org.ng/apply-now

It is not open for applications but save it as a reminder 🙂 Goodluck

Perhaps a couple reasons we fail

I. I am an introvert.

Many business men and professionals can’t be bothered connecting and engaging with others effortlessly, many of us look at people who seem to connect and engage with others “effortlessly” and say, “Well, I just can’t do that – I’m an introvert.” Even I/we struggle with this everyday, because really I think I am an introvert, a likable one but still an introvert nonetheless.

Well I have got bad news for introvert small business owners and introverts alike, being able to attract people to your cause, and articulate your goals and desires in a compelling way that elicits trust, loyalty and support is a skill you must hone.  It’s a non-negotiable according to a write-up on forbes.com. So I am learning like you should to do what’s required to learn how to connect with people more successfully. It is implied perhaps truthfully that today, we will not find work or generate new clients by sitting at our desk and trying to connect online, hiding behind your computer, or just asking your friends for help.  According to the write-up, LinkedIn is powerful, but it won’t get you work either lol!. 

It is only through engaging personally with colleagues, peers, competitors, and new supporters, demonstrating your skills and talents and your passion, and being of service in a powerful way that breeds more success.  Advice: Don’t let your introversion and the limited way in which you view yourself become an impassable obstacle to creating the success you long for. Whaaeey!

2. Thinking that your skills and talents are enough to get you work seems to be another problem.

Haven’t we all heard this ten thousand times – “But I’m really great at what I do!” Meaning, “Why am I not getting clients or these jobs I’m interviewing for? I’m very skilled and talented.”
The tough or sad truth is that we are in competition with thousands of others who are just as skilled and talented as you are (some even more).  That should not make you afraid; it’s just reality. I have struggled with this fact as a self-employed but career hopeful entrepreneur(whatever that means).

In business folklore though, the key to creating more success is to: 1) identify what you’re uniquely gifted at, 2) understand who you like to serve best and the outcomes you enjoy delivering most , 3) communicate and demonstrate that important differentiation in everything you do.

Know what makes you special – what makes you tick, what you’re passionate about, and how you are different – and use it to help the world and community around you.  Once you do that, you’ll understand that your competition can’t hold you back.

Information to hotels: get listed on http://www.totesphere.com, take advantage of our entirely free listings. 🙂

Have a lovely weekend……