Nigeria’s economy has weathered a storm of challenges—inflation, currency fluctuations, and the dwindling oil fortune. Yet, amidst this economic tempest, a beacon of resilience shines: the hospitality and tourism sector. While other sectors may be struggling, this industry is not only surviving but thriving, driven by a surge in domestic tourism. This shift, I believe, signals a turning point, a chance to redefine the future of this vital sector.
“The growth of secondary cities as tourist hubs also presents significant economic benefits.”
This year, 2024, saw an exhilarating surge in domestic tourism. What was once overshadowed by the allure of international destinations has now become a vibrant market in its own right. With soaring exchange rates and a growing appreciation for local experiences, Nigerians are rediscovering the richness of their homeland.
The evidence is everywhere: new food and beverage outlets in Lagos, Abuja, and other urban centres continue to emerge, even in the face of economic uncertainties. These developments reinforce the Nigerian spirit—a steadfast commitment to finding joy and celebration regardless of the circumstances.
Emerging trends to watch in the hospitality and tourism industry in 2025
In addition to the rise of domestic tourism, here are other developments likely to shape Nigeria’s hospitality and tourism industry in 2025:
Growth of secondary cities as tourist hubs
While Lagos and Abuja dominate the hospitality scene, secondary cities such as Ibadan, Enugu, Calabar, and Jos are emerging as tourism hotspots. These cities offer unique cultural, historical, and natural attractions that appeal to domestic and international travelers. These cities, often overlooked in favour of the country’s economic and administrative capitals, possess a wealth of cultural, historical, and natural attractions that are beginning to capture the interest of both domestic and international travelers. What makes these cities particularly appealing is their potential to offer unique, immersive experiences that differ from the fast-paced, cosmopolitan vibe of Lagos and Abuja. They cater to travellers seeking authentic cultural interactions, serene environments, and historical explorations. Furthermore, the affordability of accommodation and activities in these regions compared to larger cities makes them an attractive option for cost-conscious tourists.
The growth of secondary cities as tourist hubs also presents significant economic benefits. These cities can leverage tourism to drive local economies, create employment opportunities, and foster the development of supporting infrastructure such as hotels, restaurants, and transportation networks. Organisations in the hospitality industry must take advantage of this growing trend and start positioning themselves to serve the growing appetite in other locations apart from Lagos and Abuja.
Rise of boutique and experiential accommodations
While chain hotels remain a staple in the hospitality industry, boutique accommodations offering unique, personalised experiences are rapidly gaining popularity among travelers. These properties differentiate themselves by highlighting local culture, architecture, and culinary traditions, creating immersive experiences that resonate deeply with guests seeking authenticity.
To capitalise on this growing trend, larger hotel chains have an opportunity to diversify their portfolios by creating subsidiaries or sub-brands focused on boutique and experiential accommodations. These boutique branches can infuse local elements into their offerings, such as incorporating regional design aesthetics, partnering with local artisans for décor, and curating menus that celebrate indigenous flavors. By doing so, they can attract a new segment of travellers looking for a more intimate and culturally rich experience.
Additionally, these boutique sub-brands can be strategically positioned in emerging tourism hotspots like secondary cities or rural destinations, tapping into the untapped potential of these regions. This approach not only helps larger chains expand their market share but also fosters community engagement by collaborating with local talent and businesses.
3. Increased focus on health and wellness
As Nigerians become more health-conscious, the demand for wellness tourism is expected to rise significantly in 2025 and beyond. Spas, yoga retreats, and fitness-focused vacation packages will become increasingly popular as travellers seek ways to recharge both mentally and physically. Hotels and resorts will play a crucial role in this shift by integrating wellness features into their offerings, creating holistic experiences for their guests.
The industry can leverage this trend by designing organic meal options designed to cater to health-conscious consumers. Additionally, many properties should introduce meditation zones, quiet spaces for reflection, and nature-focused activities such as guided hikes or wellness-centred outdoor excursions. This trend not only caters to the growing desire for physical well-being but also aligns with mental wellness, offering a retreat from the pressures of everyday life.
4. Bleisure travel growth
The lines between business and leisure travel are increasingly blurring, with more professionals seeking to combine work and vacation. This trend, known as “bleisure” travel, is expected to gain momentum in 2025 as business travellers take advantage of flexible work arrangements and the growing appeal of domestic destinations. To cater to this shift, hotels and resorts should seek to adapt by providing a range of amenities that appeal to both business and leisure needs. Co-working spaces equipped with high-speed internet, meeting facilities, and comfortable workstations will be essential for those blending business commitments with personal downtime. At the same time, these properties will enhance their recreational offerings, providing guests with the opportunity to unwind after a day of work with access to pools, spas, cultural activities, and dining experiences. This integration of business and leisure elements allows hotels to tap into a growing market of professionals who see travel as both a work necessity and a chance to explore new destinations, offering a balanced and fulfilling travel experience.
5. Sustainability at the forefront
As global awareness of environmental issues continues to grow, sustainability will play an increasingly central role in shaping the Nigerian hospitality and tourism industry. Eco-friendly hotels, built with green practices such as energy-efficient designs, renewable energy sources, and waste reduction initiatives, will become more prevalent in 2025. It is essential that hotels strategise to incorporate environmentally conscious features such as solar panels, rainwater harvesting systems, and organic waste composting, reflecting the industry’s commitment to reducing its carbon footprint.
The path forward: Innovate or stagnate
The modern Nigerian traveller is no longer willing to settle for mediocrity. Expectations have evolved to match global standards, whether it’s a staycation in a boutique hotel or a weekend retreat in a serene eco-lodge.
For hospitality businesses, this is both a challenge and an opportunity. In 2025, innovation will become the hallmark of success in this industry. Businesses must prioritise creating unique, high-quality experiences that merge luxury with local flavour.
The hospitality and tourism industry in Nigeria is at a critical juncture. As we move into 2025, the message is clear: embrace change, or risk being left behind. The key to thriving lies in innovation—adapting to new consumer preferences and leveraging Nigeria’s unique strengths.
Nigeria’s hospitality and tourism sector has displayed remarkable resilience, not merely surviving but flourishing despite the economic headwinds. This is a testament to the industry’s inherent strength and the ingenuity of its players. As we gaze towards 2025, a horizon of immense opportunity awaits those who embrace innovation, invest wisely, and unlock the full potential of this vibrant landscape.
However, realising this potential demands a collective effort. Entrepreneurs, stakeholders, and policymakers must unite to forge a world-class industry that truly reflects the vibrant tapestry of Nigeria—its rich culture, diverse landscapes, and indomitable spirit. This is not merely an economic imperative; it is a matter of national pride. By nurturing this sector, we can ensure that it remains a cornerstone of our economy, a source of prosperity for generations to come, and a showcase of the best of what Nigeria has to offer the world.
Moyo Ogunseinde is an international real estate developer, chartered architect, hospitality expert and a leader in the business of sports with over 20 years’ experience in designing and developing multi dollar architectural and real estate projects including Radisson Blu Anchorage Hotel and masterplan projects in Nigeria and UK. She is the Chief Executive Director of Radidblu Anchorage VI and URAGA Real Estate, managing the operations of commercial and residential real estate portfolio in key locations within Nigeria.
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