Hospitality industry will continue to grow at moderate pace this year, driven by gradual economic recovery – Sunday

Olugbenga Omotayo Sunday is the CEO of Tojum Hospitality and also the convener of Hotel Managers Conference and Awards Africa (HMCA), an annual hospitality industry event, looked forward by stakeholders across Nigeria and Africa.

With many successful HMCA editions to his credit, Sunday, who is pushing boundaries for the meetings, incentives, conference and exhibitions (MICE) space in Nigeria, shares with Obinna Emelike, his insights on the hotel industry, trends to expect this year, industry growth, expectations from the 2025 edition of HMCA, among other related issues.

What trends do you see in the hospitality industry this year, both in the domestic and global markets?

The hospitality industry is expected to witness significant trends in the domestic and global markets this year. Some of the notable trends include sustainable hospitality, digital transformation, personalization, and wellness and self-care. With the growing awareness of environmental issues, hotels are shifting towards sustainable practices, such as energy-efficient systems, waste reduction, and eco-friendly amenities. The industry is also embracing digital technologies, including artificial intelligence, block chain (w technology that has the potential to transform the industry by providing secure, transparent and efficient solutions for various applications, including payment processing, identity verification, loyalty programmes, and supply chain management), and the Internet of Things (IoT), to enhance guest experiences, improve operational efficiency, and increase revenue.

How will the trends influence the industry?

These trends will significantly influence the hospitality industry in several ways. Sustainable practices, digital transformation, and personalization will contribute to creating unique and memorable experiences for guests. Digital technologies and sustainable practices will help hotels reduce costs, improve resource allocation, and enhance overall operational efficiency. Personalization, wellness, and self-care services will provide new revenue streams for hotels, while sustainable practices will attract environmentally conscious guests.

In your opinion, how did the Nigerian hospitality industry fare last year, and what are your projections for this year?

Last year, the Nigerian hospitality industry faced challenges due to economic uncertainties, security concerns, and infrastructure limitations. However, there were also opportunities for growth, driven by government initiatives to promote tourism and hospitality, as well as private sector investment in hotels, resorts, and other hospitality projects. This year, I project that the Nigerian hospitality industry will continue to grow, albeit at a moderate pace, driven by gradual economic recovery and stability, as well as ongoing infrastructure development.

Read also: HMCA gathers African hospitality stakeholders in Lagos, amid impressive turnout, solution-based discussions

Do you think the economic realities will play a part in the industry’s growth?

Economic realities, such as inflation, currency fluctuations, and security concerns, will undoubtedly impact the hospitality industry’s growth. However, hotels can mitigate these risks by diversifying their revenue streams, such as through meetings, incentives, conferences, and exhibitions (MICE) tourism, and implementing effective cost management strategies, including energy-efficient practices and supply chain optimization.

Considering the rising inflation and high cost of operation, what strategies do you recommend for hoteliers to stay afloat in business this year?

To stay afloat in the face of rising inflation and high operational costs, hoteliers should consider implementing dynamic pricing strategies to optimize revenue and stay competitive. They should also focus on reducing energy consumption, optimizing supply chains, and streamlining operations to minimize costs. Additionally, exploring alternative revenue streams, such as MICE tourism, wellness services, and food and beverage outlets, can help hotels maintain profitability.

What do you project as the average room occupancy rate this year, and why?

I project that the average room occupancy rate in Nigeria will be around 55-60 percent this year. This is due to gradual economic recovery, which will boost business and leisure travel, as well as ongoing infrastructure development, which will enhance accessibility and connectivity, attracting more visitors.

Do you subscribe to the view, especially by foreigners, that Nigerian hotels are overpriced?

While some foreigners may perceive Nigerian hotels as overpriced, it is essential to consider the high operating costs hotels face in Nigeria, including energy, water, and security expenses. Hotel pricing is also influenced by market dynamics, such as demand and supply, competition, and seasonal fluctuations.

Riding on a successful 2024 edition of HMCA, what are the expectations for this year’s edition?

Building on the success of HMCA 2024, this year’s edition will likely feature renowned speakers, including keynote speakers and industry experts, who will share insights on the latest trends, challenges, and opportunities in the hospitality industry. The conference will also provide ample networking opportunities for delegates to connect with peers, potential partners, and industry leaders. Additionally, the conference will feature an exhibition and showcase of the latest hospitality products and services.

How do you measure the impact of the conference on the industry?

Measuring the impact of the Hotel Managers Conference and Awards Africa on the industry is a multifaceted task that requires a combination of quantitative and qualitative metrics. To begin with, delegate feedback is a crucial indicator of the conference’s success. Surveys and feedback forms distributed to delegates provide valuable insights into their satisfaction with the conference content, speakers, and overall experience. This feedback not only helps to identify areas of improvement but also provides a benchmark for future conferences.

In addition to delegate feedback, attendance and engagement metrics also play a significant role in measuring the conference’s impact. Tracking attendance numbers, social media engagement, and online interactions helps to gauge the conference’s reach and influence. Furthermore, the number of new partnerships, collaborations, and business deals facilitated through the conference is a tangible indicator of its impact on the industry.

Testimonials and case studies from delegates and speakers provide a more nuanced understanding of the conference’s impact. These personal accounts offer insights into how the conference has influenced their businesses and careers, highlighting the practical applications of the knowledge and ideas shared during the conference. Industry recognition, in the form of media coverage, industry awards, and nominations, is also an important metric, as it reflects the conference’s reputation and standing within the industry.

Ultimately, the true measure of the conference’s impact lies in its ability to inspire change and drive progress within the industry. Evaluating the extent to which conference attendees implement new ideas, strategies, and best practices learned during the conference is crucial in assessing its long-term impact. By tracking these metrics, we can gain a comprehensive understanding of the conference’s effectiveness in achieving its objectives and identify areas for improvement to ensure that future conferences continue to meet the evolving needs of the industry.