Lucrative prospects for Nigeria hospitality industry
from OKORO CHINEDU in Lagos, Nigeria
LAGOS – THE Nigerian hospitality industry must increase payment options to maximise growth.
This as customers now prefer to browse, research and transact online.
Local hotels have therefore been urged to offer their foreign customers as many digital payment methods as possible to ensure the tourism growth.
The World Travel and Tourism Council’s Economic Impact Report shows that Nigeria’s travel and tourism sector’s contribution to GDP is forecast to grow at an average rate of 5,4 percent between 2022-2032.
This is higher than the 3 percent growth rate of the overall economy.
The report goes on to point out that this will boost the sector’s contribution to GDP to nearly ₦12,3 trillion (US$27,3 billion) by 2032, which represents 4,9 percent of the total economy.
The DPO Group believes travel and tourism companies hoping to benefit from this growth, must take a close look at digital payment options as part of their competitive offering.
Chidinma Aroyewun, DPO Group’s country manager in Nigeria, said during the past four years operating as a licensed payment solution service provider in the country, it had seen hotels struggle to collect payment from international and virtual cards, especially from foreign customers due to limited payment facilities, and sometimes staff’s limited knowledge of payment options.
“This has cost hotels millions of Naira when they can’t charge checked-in guests or collect penalties from cancellations, resulting in many lost customers,” Aroyewun said.
“Being able to charge international cards and accept foreign currencies like US Dollars will not only boost venue revenue, but foreign currency inflow for the country as a whole,” Aroyewun said.
Cards are widely accepted around the world and are the preferred payment method of corporate travellers.
Credit cards in particular offer longer payment terms, come with built-in travel insurance, accrue more loyalty points and frequent flyer miles and, most importantly, can have their spend data integrated into the company’s expense systems.
– CAJ News