Why investment in infrastructure is key in driving tourism growth – Philda Kereng

In 2023, the United Nations Tourism (UN Tourism) was excited that about 1.3 billion people traveled around the world for tourism purposes.

The excitement stemmed from the fact that in 2023, the tourism sector impacted global economy with roughly $USD1.48 trillion from international tourism receipts, the highest figure recorded to date.

Sadly, Africa could only attract 66.4 million international tourism arrivals in 2023, despite its huge potential and billing as the last frontier for sustainable tourism in the world, while France and Spain attracted 100 and 80 million visitors, respectively last year.

The inability of the continent to woo huge number of tourists from across the world is a big concern for some stakeholders, who are also working to address the challenge.

Identifying one of the challenges, Philda Kereng, High Commissioner of Botswana to Nigeria, decried that little or no investments in tourism infrastructure accross the continent is the biggest obstacle that is hindering Africa from attracting huge number of visitors to her shores for tourism.

The former Botswanan Minister of Tourism, insisted that investments in tourism infrastructure, in addition to developing a value chain for businesses remain key to growing the industry in Africa.

According to her, the investments should be championed by both the government and private-sector tourism players.

Kereng held these views at the conference session of the 2024 Annual General Meeting (AGM) of the Federation of Tourism Associations of Nigeria (FTAN), which held in Abuja recently on the theme, “The Role of Private Sector in the Development of Tourism in Nigeria”.

According to the Botswanan High Commissioner, in her paper as the lead speaker at the AGM’s conference, tourism will thrive when the private-sector operators create a value chain for their businesses and events.

She posited that collaboration between the private sector operators and the regulators in the public sector was a matter of necessity as, according to her, while the latter formulates the policies, it is still the former that is vested with the task of driving those programmes and laws.

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In her opinion, the relationship must be mutually beneficial for any expected growth to take place in the economy, warning that there should be no competition between both sector operators.

Apart from the private-sector investments, the envoy also stressed the imperative of investment in infrastructure by the government, which she said is key to driving growth.

“Government needs the private sector to drive its policies, as the latter is the implementor of government policies. Therefore, policies enacted by the public sector must be all-inclusive.

“It is also important that the government or regulators in the public sector see the imperative of investment in infrastructure as essential for any meaningful growth to be achieved.

“Government needs to look at tourism growth in terms of infrastructure investment. This means that it is how much you put in that you expect to recoup from the investment. Countries that invested heavily expect to see a higher ROI than those who don’t. Infrastructure investment should also cover security deficiencies.

“Also, there must be a new way to approach industry challenges or implement policies in the sector. We can’t continue doing things the old way. Government needs the private sector, and vice versa,” she said.

Considering the above, Kereng charged private sector operators in the country to work towards positioning their businesses as relevant players in the industry.

“Since the government needs you to drive its policies, you need to position yourself and your businesses to be relevant. If you have to be relevant, you must show your worth with real growth in your operations so as to convince the government that you are truly relevant.

“See yourself as an influencer who can drive that growth through your various businesses. You have to influence the industry with real growth, having a business that is actually delivering and attaining that sustainability level, job creation and tangible staff.

“That is how you influence the public sector; by growing your businesses through sustainable strategies,” Kereng stressed.

In charting the way forward, Kereng advised private sector operators to, among others; develop their capacities, engage the services of the media, embrace technology, and to adopt a value chain approach in organising business events.

“For every event that you organise, there must be a value chain created. You grow by growing others for sustainable growth to take place,” she said.

The envoy also harped on collaboration between all sector players in the tourism industry, as she urged them to work together and communicate ideas on developing the country’s economy.

Earlier, in his opening address, Nkereuwem Onung, president of FTAN, noted that in choosing the theme for this year’s AGM, the association had acknowledged the efforts made by the private-sector in tourism development in Nigeria, including job creation and infrastructure development, while insisting that for sustainable growth to take place, the public sector operators need to play their part.

“Rather than make laws to tax and take toll from our businesses, we would like to see government being decisive on appropriate visa policy, stimulate market demands with appropriate marketing strategies, invest in tourism assets and attractions, fix the roads, provide security and maintain peace,” Onung said.

The FTAN president used the AGM platform to invite the public sector to have lunch with the private sector.

According to him, it has become imperative for the regulators to dialogue and with the private sector operators in the country in order to chart a new course for Nigerian tourism.

“We are told that Nigeria has secured hosting rights for 68th UN Tourism CAF meeting in 2025. What does it hold for the country? Will the country be at WTM, London? Where are the two tourism laws we procured last year,? Is it not yet time to engage us,? Where is the blueprint of the new ministry? Lunch is served.

“Let us work together to chart a new course for Nigerian tourism. Let us explore innovative solutions, foster partnerships, and drive growth,” Onung stressed.

The FTAN president assured that his group would continue drive the narrative of peace within the tourism ecosystem.

“We are open to continuous consultation with the tourism ministry, SON, tourism MDAs, ECOWAS, among other stakeholders. We need cooperation among industry players for collective advocacy as it is the prerequisite for shared prosperity,” he said.

Meanwhile, the 2024 AGM also featured a discussion session, which had as panellists leaders in the country’s tourism industry.

At the AGM, Munzali Dantata, former president of FTAN, was ratified as the substantive chairman of the Board of Trustees (BOT) after two months in an acting capacity following the resignation of Samuel Alabi earlier.