A recent Lagos hospitality report from Estate Intel has revealed that the sector is showing signs of resiliency in spite of the devastating effects of the COVID-19 pandemic. The report’s reflected that, despite the volatility caused by the pandemic, the real estate market had focused on sustainability, with positive trends appearing in the vast majority of the sectors observed. It also noted that despite oversupply concerns, the sector had outperformed key global centres in revenue. Even in the residential sector, demand continues to outpace supply, especially in the low and middle price market.
The report titled “2023 Lagos Development Pipeline Report Hospitality Overview: How does the business sector drive the hospitality industry?” asserts that the hospitality industry in Lagos is one of the few that has managed to thrive despite the economic downturn. In addition, it mentioned that in 2022, average occupancy rates hit a 10-year high of 68.4%, according to figures from W Hospitality Group. Also, in 2022, Lagos surpassed major international hotspots like Dubai, London, New York, and Hong Kong in terms of revenue per available room, having grown by 43% from the base year of 2019.
77% of hotel sales and demand in Lagos comes from organizations.
According to a study conducted by W Hospitality Group, 77% of hotel sales in Lagos come from organizations. This success was then linked back to surging demand, particularly from business and domestic tourists, against the backdrop of a restoration post-pandemic. The development pipeline accounts for about 36% of total stock, so this growth is expected to continue in 2023 despite concerns about an increase in supply. However, only 20% of the growth pipeline is being built now.
Folorunsho Coker, the head of the Nigerian Tourism Development Corporation, said that despite a 60% increase in revenue, the expansion of the industry was impeded by the global economic downturn. He stated that a global recession restricts growth and screws up the supply of funds and goods around the world. Holidays are not a priority because of the high unemployment rate, low earnings, and limited spending power. Coker asserts that refloating economies is the primary method for combating depreciation and emphasizes the importance of significant public investment in infrastructure projects.
Rising interest in visiting Nigeria contributes to the sector’s growth.
Similarly, Justina Ovat, the vice president of the Federation of Tourism Associations of Nigeria South-South and president of Women in Hospitality Nigeria, said that the sector had been hit hard by the COVID-19 pandemic due to the restrictions placed on travel and tourism. She noted that rising interest in visiting Nigeria has contributed to the expansion of the sector in recent years. Data from the Nigerian Bureau of Statistics shows that the sector expanded by 3.8% in 2019 and contributed 4.8% to the nation’s GDP. However, the pandemic greatly constrained travel and tourism, reducing revenue for the sector.
Efforts have been made to revitalize the industry regardless of the challenges the pandemic has caused. The Sustainability Plan is one such initiative that the Nigerian government has launched to assist small and medium-sized hotels. Also, to persuade customers and maintain their business, a number of hotels have instituted preventative health measures, such as routine cleaning and disinfection of their facilities. She asserts that, as one of the sectors hardest hit by COVID-19, the industry still needs to recover fully.
Many businesses were forced out due to the pandemic restriction.
Lastly, Ovat explained that, like several other nations, Nigeria’s industry was severely impacted, and the strain was felt even more acutely because there was little or no aid. Many businesses have closed their doors, some temporarily and others permanently. Nonetheless, there are signs of improvement due to numerous interventions, such as vaccines and enhanced hygiene in healthcare facilities. Since 2021, when restrictions on foreign travel were relaxed, the industry as a whole, including hotels and restaurants, has typically been operating again.
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COVID-19’s effect on the Hospitality sector. – Nigeria’s hospitality sector outperformed major global hubs – Estate Intel. – Express your point of view.
The report noted that despite the challenges faced by the sector, including infrastructure deficits, security concerns, and slow economic growth, the Nigerian hospitality industry remained resilient. The COVID-19 pandemic has significantly impacted the hospitality sector in Nigeria, and has also boosted the sector, providing higher quality facilities and services. The sector will need to take measures to adapt to the “new normal,” including enhancing health and safety measures, leveraging technology for contactless services, and exploring new revenue streams.
Hospitality sector was greatly affected during the covid 19 pandemic. But we have passed through that phase now and hospitality companies are getting back to their foot.
COVID-19’s effect on the Hospitality sector. Nigeria Hospital system was not really affected by the COVID-19 during that pandemic. Because causes of COVID-19 was not much. I no really believe Nigeria Government them because they were not sincere during those period
The pandemic caused quite a lot of challenges across all sectors. one of which is the effect on the hospitality sector. However, everyone affected should try and snap out of it whichever way
Covid really affect everywhere in the country we ate thank full is not that much like some country but still else we are affected covid also affect the hospitality
It is undeniable that Covid-19 affected even major countries health sector as at that period because the pandemic shock the world and everyone was left perplexed.
Covid 19 cannot be easily forget because it cause us alot and affect all our sector, it affect the hospitality sector because we are not prepared for this kind issue
The global economy downturn caused by the pandemic raised concerns from every angle. Seeing Lagos healthcare thrive during this period is wonderful.
Lagos hospitality resilience displayed was outstanding and worth praising. Other sectors too was not really affected too much like that in the country.
The hospitality industry took a major hit during the swine flu pandemic of 1918–19. But now that we’re out of that slump, hospitality businesses are gaining ground.
COVID-19 seriously have bad effect on the hospitality industry across the globe and this is the major sector that generates lots of revenue to some country and that is the sector that raise there economy but things are getting better now.
The global impact of Covid-19 on the health sector is apparent, as the outbreak shocked and bewildered everyone at the time.
It is evident that COVID-19 had an impact on even the health sectors of large nations at the time since the pandemic shocked the entire world. Yet we can’t stay relaxed forever.
The worldwide recession the pandemic generated sparked widespread alarm. It’s fantastic to see progress being made in healthcare in Lagos at this time.
Despite the impact of Covid 19 on businesses, that didn’t stop the hospitality nature exhibited by Nigerians because we are known for that. That is why Nigeria could outperformed major global hubs.
The Nigeria’s hospitality sector was able to outperformed major global hubs especially Estate Intel despite the COVID 19 impact because stakeholders and government effort in ensuring the revitalization of the sector and inclusive is that nature of Nigerians who are ever lively despite their challenges.