Lagos and Cross River states are celebrating impressive revenues from their 2024 end-of-year festivities, known as Detty December, highlighting the untapped potential of Nigeria’s tourism and hospitality sector. This success signals an opportunity for other states and private businesses to harness tourism as a powerful tool for boosting revenue, writes Festus Akanbi.
According to thisdaylive.com, Nigeria is often described as a land flowing with the proverbial milk and honey. This is because apart from the universally accepted high quality of its human exports, its rich agricultural land and abundant mineral resources, in addition to its high youth population should have been a big advantage in the quest to reposition the nation’s economy.
Unfortunately, these endowments notwithstanding, Nigeria, like some other countries could not boast of a profitable tourism sector as emphasis has always been placed on the oil resources although there have been calls for diversification into other areas like the agricultural sector lately.
Analysts, however, argued that the fixation on the oil industry as a major source of revenue is bound to change as the success of the end of the year 2024’s tourism and hospitality show, dubbed Detty December, is opening a new vista in the nation’s economy.
Detty December, the Christmas season extravaganza, is a triumphant celebration of culture, music, and good vibes that have evolved in recent years during the traditional holidays’ influx of diaspora returnees, which heightened in 2018 when Ghana launched a successful “Year of Return” campaign actively encouraging people to visit their ancestral homelands.
For many in the vast Nigerian diaspora, it is a deeply personal homecoming, a chance to reconnect with their heritage, traditions, and families while immersing themselves in the lively energy of Nigerian life.
But as figures of revenue earnings from the fiesta begin to roll in, economic affairs commentators said the boom in the hospitality and tourism sector, occasioned by unprecedented visits to tourism sites and entertainment spots all over the country has already given economic planners a better idea of how to maximise the revenue potential of the tourism sector.
In a coincidence of sorts, figures of revenue haul from Detty December were released the same week when a report placed Nigeria in the second place in Africa’s 2024 Hotel Development Rankings, with 7,622 rooms across 50 hotels, driven by key developments from global hotel chains like Hilton, Radisson, Marriott International, and Leva Hotels, with Lagos leading the way with five new hotel deals.
In the latest ranking released last week, Egypt retains the top spot with 26,241 rooms, while Morocco follows closely with 7,169 rooms.
Untapped Goldmine
Although Nigerians, including those who visited home from the Diaspora for the ‘Detty December’ shows, may have returned to their bases, emerging figures of earnings from organisers of the various shows, hotels, and other tourist centres have confirmed the narrative that Nigeria is sitting on an untapped goldmine.
For instance, figures released by the Cross River Tourism Bureau showed that more than 300,000 tourists attended the recently concluded 32-day Calabar Carnival in Calabar, Cross River State.
READ: News: Detty December 2024, The Economic Impact and A Lens into Nigeria’s Economic Pulse
The bureau’s Managing Director, Ekpenyong Ojoi, disclosed that tourists’ attendance for the carnival increased by 42 per cent compared with 2023 statistics.
He said: “Calabar recorded over 300,000 tourists from November 1 to December 31, 2024, who came in for the Calabar Carnival to see the OMR, Marina Resort and the Kwa Falls.
“Most of the tourists were from Abuja, Lagos, and neighbouring Akwa Ibom State. Again, there was a tremendous increase in tourists to the destination when compared to the 2023 figures of over 190,345 tourists to our enchanted attraction sites, within the same period.
“The number of visitors to the destination for the 2024 Calabar festival outweighed that of 2023 by 42 per cent. An estimated 450,000 onsite spectators witnessed the Carnival Calabar event, the Cultural Carnival, the Children’s Carnival, and the Bikers Carnival events, as against the 279,486 onsite spectators recorded in 2023.
“Over 1.2 billion viewers watched the carnival events on DSTV channel 198 across the world. Live online streaming of over 100 million viewers was recorded within the festival period.”
Added to this is the 68 per cent rise in the occupancy rate of accommodation establishments in Calabar during the period as more than 90 per cent of hotels in Calabar had a 100 per cent occupancy rate between Dec.15, 2024, and December 29, 2024.“Revenue generated from hotel bookings is estimated at N2.79 billion ($1.74 million) with N25,000 per night confirmed hotel bookings in December alone for about 3,600 available bed spaces in Calabar Cluster, while revenue from food and breakfast alone stood at an estimated N900 million ($562,000),” Ojoi added.
Like Calabar, Like Lagos
Meanwhile in Lagos, the tourism and entertainment sector achieved a record-breaking revenue of N111.5 billion in December 2024, according to a report by MO Africa Company Limited. The report disclosed that the festive “Detty December” period attracted approximately 1.2 million visitors, including international and domestic tourists, adding that hotel bookings contributed N54 billion from 15,000 stays, while short-let apartments earned N21 billion from nearly 6,000 reservations, with nightly rates averaging N120,000.
“Nightlife also played a significant role, with the top 15 lounges and nightclubs generating an impressive N4.32 billion during the month, averaging N360 million daily. Recreational activities at beaches and resorts contributed 70% of N4.5 billion in leisure-related earnings, while event centres hosted 1,175 bookings, adding N1.2 billion. Luxury car rentals, with daily rates ranging from N200,000 to N2 million, earned another N1.5 billion. The report attributed much of the boom to returning Nigerians living abroad, who accounted for nearly 90% of the 550,000 passengers arriving at Murtala Muhammed International Airport during the holiday season,” the report said.
Leveraging Detty December to Drive Economic Growth
In light of this development, former Lagos State Governor, Babatunde Fashola has emphasised the transformative potential of tourism and diaspora remittances to boost Nigeria’s economy, especially during the festive season.
At Monday’s 55th convocation lecture of the University of Lagos (UNILAG), Fashola explained the importance of leveraging the country’s “Detty December” phenomenon to drive economic growth.
Fashola, the Chairperson of the convocation lecture, noted that tourism during this period, coupled with diaspora remittances, “already contributes 4 per cent to Nigeria’s GDP,” urging stakeholders to explore intentional strategies to capitalise on this seasonal economic potential.
According to him, ‘Detty December’ has the potential to enhance the country’s international image and create economic opportunities, particularly in the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector.
He encouraged Nigerians to prepare for future events by investing in accommodation and related infrastructure, highlighting the potential for residents to rent out their homes and earn income during tourism events.
He also emphasised the need for intentional efforts to capitalise on tourism opportunities, citing the positive impact of recent events on Nigeria’s international image.
“Tourism has a vast value chain,” Fashola noted, stressing the need for investment in accommodations, transportation, and other hospitality-related infrastructure to meet demands during peak tourism periods.
Across the world, tourism has evolved to become one of the fastest-growing industries. This growth has been driven by advanced technology in travel and an increased holiday culture. With an endowed geographical landscape that comprises coastal beaches, mountains, historical monuments, wildlife, UNESCO-approved heritage centres1, and diverse culture, Nigeria should be able to create a niche in global tourism.
According to a 2017 tourism report by the World Economic Forum, travel and tourism (T&T) currently contributes about 2% to Nigeria’s GDP compared to other African countries such as Seychelles, Cape Verde, and Mauritius where the T&T industry has been better harnessed, contributing 20%, 17% and 12% respectively to GDP. Although Nigeria recorded a total of 1.3 million international tourist arrivals in 2016, these three countries collectively attracted about two million international tourist arrivals.
Analysts say the development of tourism in Nigeria cannot be achieved without the collective efforts and investment commitment of a Public-Private partnership, with major efforts from local communities and state governments. Tourist sites such as the Mambilla Plateau in Taraba, Obudu Mountain Resort in Cross Rivers, and Yankari Games Reserves in Bauchi among others could be developed to world standards. The tourist market is global but states could create niches targeting tourists who have diverse and special interests.
For instance, Taraba State and the Obudu area of Cross River which have scenic mountainous attractions could create a tourist niche around mountain hiking. While Bauchi State could easily restore wildlife to Yankari to attract Safari revellers. There should also be a consolidation of successes recorded in flagship tourist events like the Detty December. This can be further achieved by training professionals such as tour guides, hotel and resort managers, caterers, taxi drivers, and security personnel, amongst others
