Despite the growing confidence in the new Muhammadu Buhari administration’ s commitment to security across the country, especially in the north eastern part, where Boko Haram, an Islamic sect is throwing bombs, investors in the tourism and hospitality industry are still scared of starting new investments or expanding their already existing investments there.
According to BusinessDay investigations, the lingering security situation has resulted in the winding up major tourism ventures in the region, while no international hotel brand is willing to do business beyond Abuja, assumed to be secured because of the federal government’s presence.
Moreover, northern Nigeria has lost over N7 billion in five years (from 2010 to date) due the continued insurgence, according to tourism experts and a report of the rate of business confidence in states across the country.
Within the five years, the experts noted that the region witnessed the lowest tourists’ arrival, unconcluded business visits, no opening of an international branded hotel, amusements parks and bars almost closed, government lost revenue, while social life was almost completely knocked down.
“If you add the aggregate of profit hotels would have made at a much better occupancy rate within the five years, the new ones that would have opened, the revenue from the parks, new bars and restaurants that would have opened, the revenue accruing to government as tax and would have been flourishing since the five years, the amount is over N7 billion”, John Enejo, an Abuja-based hotelier who converted his hotel in Jos to a private school due to low patronage, said.
The loss of revenue over the five years, according to Business Confidence Report, will continue, as no northern city made it to the top 15 alternative investment destinations in 2013, and 2014 except Abuja, as the northern region has over time, enjoyed the lion’s share of insecurity.
While Kano and Kaduna seem more peaceful, feasibility studies and investment advice do not encourage hospitality investors to look their way because of the vulnerability of the cities to surprise violent attacks.
The development results in willing investors pulling back, those who cannot wait till the security issues are resolved are fast moving to the southern part, especially Lagos, while the more ambitious investors are going further to Ghana, and Gambia.
The most affected by the worsening security situation is the private sector, which employs majority of the workforce in the sector. Also, amusement parks, wildlife parks, bars and restaurants, and especially, indigenous hotel owners, who before the insurgence recorded about 40 percent occupancy but are today at less than 20 percent occupancy in cities like Kano, Kaduna, Jos and Maiduguri, with Abuja partially affected.
Most hotels in the region are struggling to pay staff as patronage keeps declining with each bomb blast, while discounted rates hardly woo guests, despite the high operational costs.
Also, tourists and guests hardly visit for the popular festivals in the region such as the Kano Durbar and Argungu Fishing Festival, which draw tourists and is today, often cancelled on security considerations.
“It is unfortunate that my clients cannot visit for the Argungu Fishing Festival in Kebbi State. The hotel I partner with, whenever they visit cannot guarantee their safety, and I cannot build my own hotel. There are many tour operators and tourism related businesses that are shut down today because of the insecurity issue.
“The worst for me is that the solution is still far, with the continued bombing since President Buhari was inaugurated”, Sani Yahaya, a once ran a flourishing tour operation, lamented.
But the regret for Yahaya is that nothing is heard about two international hotel brands that showed interest in Kano and Kaduna.
But the situation in Jos, the Plateau State capital, is not different. The once thriving tourism destination has not recovered from the ethno-religious crisis that keeps re-occurring in the state.
At present, only a few hotels are recording slightly above 20 percent occupancy rate in Jos, while some have closed down due to unsustainable patronage.
“A right thinking investor will take his investment to Lagos or more peaceful cities where that same room can fetch as much N30,000 per night instead of the N5,000 rate here”, a hotel staff said.
The insecurity which has so far killed social life in the Jos, has also made tourism nonexistence. Jos Museums, Jos Wildlife and Amusement Park are now bereft of visitors.
Tyem Bulus, a staff of the park said despite the improvement on the facility and introduction of new wildlife species, visitors are still reluctant to come because nobody wants to be a target or use his/her money to buy death.
The Yankari Game Reserve, which has not done well since being taken over by the Bauchi State Government, is one of the worst hit, as no tourist thinks of Bauchi because of its proximity to Bornu, the base of the Islamic insurgence.
Like Jos, Kaduna is not better as tourism activities in the city continued to nose dive as a result of the increasing level of insecurity in state.
As a result of the prevailing level of insecurity, many businesses, especially hotels, beer parlour operators, night clubs and other places of relaxation are gradually folding up, as their owners count their losses.
OBINNA EMELIKE
