Travel, hospitality businesses to rebound as international flights resume tomorrow

Travel and hospitality businesses, which have been impacted heavily by months of shutdown occasioned by coronavirus pandemic, are set to rebound as international flights resume in Nigeria tomorrow, September 5, 2020.

The businesses, which groan over poor patronage despite the easing of the lockdown, especially those that depend on foreign inflows, are preparing to receive clients in good numbers again, and raising hope of recovery for the badly battered travel and hospitality sector.

Hotels, especially the international branded ones, which depend on international flights for over 60 percent of their guests, are more excited over the resumption of international flights.

With the resumption, most hoteliers are predicting that occupancy rate, which hovers between 10 percent and 15 percent since the easing of the lockdown, would improve to at least 35 percent in a month’s time.
Brian Efa, general manager, Ibom Hotel & Golf Resort, Uyo, notes that the resumption would boost meetings, incentives, conferences and events (MICE), which are goldmine for hotels, and thereby improving occupancy greatly.

Wellington Mpofu, director of sales/marketing, Radisson Blu Anchorage Hotel, Lagos, sees huge boost on patronage when foreign passenger inflow begins, as well as, Ubong Nseobot, sales/marketing manager, Southern Sun Ikoyi Hotel, which opened to guests on September 1, 2020.

Also, Martins Ojo, a hospitality expert, states that occupancy and revenue are going to pick as many have adjusted to the new normal, and are ready to get back to business. He thinks occupancy rate will average 40 percent by September ending, as more flights come into the country.

As well, stakeholders in the aviation sector are hopeful that the economy would gradually rebound as movement of persons and goods would help boost the economy.

According to Seyi Adewale, CEO, Mainstream Cargo Limited, there is a catalytic effect of the aviation subsector and the planned resumption of international flights in particular, as this is important for the flow of goods, trade and tourism, investment and people.

Adewale explains that with international airspace shut, about 241,000 direct and indirect jobs are at stake and this has negatively impacted jobs and the economy.

“The Federal Government has lost revenues from taxes including Value Added Tax in the closed airspace period. According to IATA, the Gross Value Added Contribution to our GDP is $1.7 billion and you can see the immediate appreciation of the naira just to the news of opening our airspace on September 5, 2020.

“This only amplifies the impact and importance of international flight resumption to our economy. With the determined plan, businesses such as travels and tours, hotel and restaurants, catering and ground services, entertainment and culture, among others, can breathe again,” he states.

Also excited over the resumption, John Ojikutu, chief executive of Centurion Securities, and a member of Aviation Round Table (ART), the aviation industry think tank group, says the resumption of international flights is where the money is because about 50,000 international flights a year give the aviation sector about 80 percent of its earnings in commercial aviation as against over 100,000 domestic flights that hardly record the balance of the 20 percent in debts.

Ojikutu says the effect on the other sector would be significant, especially on hotels and other hospitality outfits, but may not be much on tourism.

“Summer has virtually gone but the Christmas season is approaching; we expect a rush by Nigerians in the diaspora into the country for the Christmas, and that can have a very big impact on the economy; brighten the business of the domestic airlines and possibly pay for their losses during the lockdown,” he states.

Saleh Rabo, president, Federation of Tourism Association of Nigeria (FTAN), is also excited that international flights are resuming tomorrow.

Rabo, who leads the umbrella body of tourism practitioners in Nigeria, notes that the resumption would boost business and bring the needed respite to the sector, which according to him, lost over N12 billion daily during the lockdown period, while the hotel subsector lost N2 billion daily.

But he urges the Federal Government and the Nigerian Civil Aviation Authority (NCAA) to be definite with the date of resumption, offer airlines flight timetable, safety guidelines and others incentives needed to ensure smooth take-off after many months of inactivity.

“We need government to be definite with this new resumption date to avoid cancelation of tickets and travel plans again. Many people who were issued tickets for the earlier botched August 29 resumption were disappointed when it was shifted to September 5. Starting with cancellation after many months of inactivity is not good for the industry and passengers,” he says.

In the same vein, Bilkisu Abdul, president, Nigeria Association of Tour Operators (NATOP), notes that flight resumption would improve traffic across the travel and hospitality sector, but not immediately as many people are still holding on still next year.

As the airspace opens up, the NATOP president thinks that more people will begin to travel as many people are now used to Covid-19 pandemic, hence need to observe the necessary precautions, but not to boycott trips because of the pandemic.

She also notes that tour operators and travel agencies who have been out of business for long because of the closure of airspace are beginning to reopen their offices to prepare for flight resumption, amid taking additional services, especially helping clients with information on further requirements at their intended destinations, helping with health clearance certificate, among other protocols.

But one drawback for the flight resumption, according to Abdul, is the very expensive airfare, which could discourage passengers, though she hopes that as time goes on, the airlines will offer incentives to woo passengers.

But as Rabo points out earlier, there should not be another cancelation to ensure that traffic picks up from this September.

Susan Akporiaye, president, National Association Nigeria Travel Agencies (NANTA), says a letter has been issued to the airlines advising them to commence flight operations, but most of the airlines are waiting to see if the airport would eventually open on the said date, before they bring in their aircraft.

However, BusinessDay’s checks show that some foreign airlines have already fixed dates to commence flight resumption, while others are waiting till September 5 to bring in their aircraft from their respective countries.

Virgin Atlantic has announced that it would commence four weekly flights from Murtala Mohammed International Airport from September 10, 2020.