SUSTAINABLE

TOURISM

The Building Blocks

 01. THE OPERATING ENVIRONMENT
02. SUPPLY SIDE – THE PRODUCT
03. DEMAND SIDE – THE MARKET

CONTENT 04. ON SUSTAINABILITY

The Operating Environment
Nigerian Nominal GDP (Nigerian Naira) and Real GDP growth (%) (2013 – 2022)
650.0 6.5
5.5
550.0
4.5
450.0 3.5
2.5
350.0
1.5
250.0 0.5
-0.5
150.0
-1.5
50.0 -2.5
2013 2014 2015 2016 2017 2018 2019f 2020f 2021f 2022f 2013 2014 2015 2016 2017 2018 2019f 2020f 2021f 2022f

 The hospitality and tourism 514.96

N
628733
o
m
i
n
4
568.49 494.58 404.64 375.74 397.26
893761 318077 952753 548652 961608
6 7 8 1 1
444.92 496.12 551.07 613.94

sector is quite sensitive to the

a
l
G
D
P

overall macroeconomic
(
U
S
D
b
n
)

environment. This is quite evident

5.4
R 6.31 2.65 -1.62 0.81 1.94 2.15 2.54 2.44 2.74
e
a
l
G

from historical industry trends.

D
P
G
r
o
w
t
h
(
%
)

 Positive consumer sentiment Source: USEIA, IMF, Perennia Hospitality

driven by a conducive Lagos Upper Upscale/Luxury Market Performance NGN (2014 - YTD Jul 2019)

macroeconomic environment is
₦ 60,000 58%

56%
always guaranteed to result in ₦ 50,000
54%

strong performance of the ₦ 40,000

52%

tourism industry in the long term, ₦ 30,000 50%

irrespective of periodic, cyclical ₦ 20,000

48%

shocks. ₦ 10,000
46%

44%

₦- 42%
2014 2015 2016 2017 2018 YTD Jul YTD Jul
2018 2019
Source: STR ADR RevPAR Occ

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Supply Side – The Product
Developing an attractive tourism destination requires a handshake between government policy and private sector
enterprise. Here are a number of key building blocks:

01 02 03 04

Policy Focus Strategic Infrastructure Security Transportation

Strategic focus of
government in promoting
opportunities for FDI and LDI
through enhanced ease of
doing business and stable,
coordinated government
policy at all ministries and
parastatals of the State.
Investment into strategic
infrastructural assets and
public works such as quality
road network, public utilities,
parks, reserves and clusters,
etc. will provide the needed
stimulus for growth of a State
or town as a destination.
Safe and stable security
situation in the State will lead
to enhanced attractiveness
and competitiveness as a
business and leisure
destination to both national
and international visitors.
Effective and efficient
transportation links via air,
land and water could propel a
destination into number 1
status for business, leisure
and MICE tourism nationally
and across and the sub-
region within a couple of
years.

Strategic Objectives X Develop an authentic, private-sector driven business, and leisure tourism experience
X Attract private sector capital through enhanced competitiveness of the State as an investment destination
X Promote the State as a national and international center for culture, MICE and leisure tourism

“Proudly local, nationally and globally attractive”

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 Demand Side – The Market

Business transient and

Local leisure guests, Local, national and Multilateral development Government business Not currently a major
Local

75%
visitors from international MICE agencies and local NGOs due to demand for room driver of room night
fewer extended stay in various sectors such as demand but expected to
neighbouring states and market share owing to nights, meeting and
visitors operating in the
Key oil & gas, manufacturing,
further afield in the
country and region due
state of the art MICE
facilities supported by
health, education,
development,
other spaces during the
ordinary course of
ramp us as the State
becomes an increasingly
Demand agriculture and financial
services industries
to improving air improving hospitality and international migration, governance and around popular destination to
connectivity and other aid agencies other demand drivers
Drivers municipal infrastructure the political cycle

Corporate Leisure Conference NGO Government Airline

Foreign
25% 20% 20% 15% 15% 5%

Product Pricing Position Promotion Process

Authentically local but
internationally acclaimed
Marketing standard hospitality
product, remaining true to
Mix the community but
delivering outstanding
guest experiences
Insightful pricing but also
in quality of product and
service delivery to an
increasingly well travelled
and therefore discerning
local and international
clientele
Significant breadth of
market positioning
consistent with pricing and
quality offerings
comparable with
internationally branded
assets of similar standing
The Operator will blend
aggressive digital
marketing (SEO, SEM, GDN,
social media and mobile)
with traditional above and
below-the-line strategies in
key source markets
Convenient online booking
platforms powered by IT
solutions with best rate
guarantee systems; and
partnerships with top
national and international
booking engines

The worst thing you can adopt is a “build it and they would come” strategy. You needn’t have
bothered at all!
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On Sustainability…
ECONOMIC VIABILITY
Ensure the
competitiveness of the
tourism offerings and
VISITOR FULFILMENT
profitability of enterprises,
Create experiences of a
to deliver economic
lifetime that are rich, varied
benefits to the local
and impactful, to ensure
community.
repeat visits many times
over.
CULTURAL AUTHENTICITY
Tourism experiences are
best served unashamedly
RESOURCE EFFICIENCY
authentic, consistent with
Ensure minimal
the local culture and
dependence on non-
practices, yet of
renewable resources, and
international quality.
ensure minimal disruption
to the natural environment
of tourism sites and
attractions.
Be you, always!!
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ICON Hotel Group

THANK YOU
JKUAT Drive off Thika Highway
P.O Box 6638-01000
Thika, Kenya
+(254) 728 791 909
ceo@iconhotelafrica.com