Today's Trending

Nigeria losing $8bn in tourism revenue – RenCap

The Global Chief Economist, Renaissance Capital, Mr. Charles Robertson, says Nigeria is losing at least $8bn in tourism receipts.

yankari-game-reserve-690x436

Robertson, who stated this in an emailed note on Wednesday, stressed the need for improvements in airport quality and visa policy.

[pro_ad_display_adzone id=”60438″]

He said, “Why is Ghana 25 times more successful than Nigeria in attracting tourism revenues? Indeed, why is Nigeria the second least successful African country in attracting tourism receipts out of the 43 we have data for (only the DRC is worse)?

“One deterrent is the visa process, which we argue is sometimes an example of countries putting pride before economics. It can be an unpleasant experience for an east European or African to get a visa to visit the EU or US – and so it’s not surprising that some emerging markets and frontier countries make it hard for people in richer countries to visit them.”

According to him, patriotic countries like Turkey and Croatia do not jeopardise the economic benefits of tourism by insisting on visa reciprocity.

Robertson said, “We argue that deterring tourists is an economic mistake, especially when the EM or frontier economies are weak. Countries like Russia and Nigeria could do with the diversification that tourism might provide.”

He said during tough times, Spain and Greece had seen tourism revenues rise substantially as a percentage of the Gross Domestic Product in recent years, adding, “Many EM and frontier countries have not despite weak currencies and low jet fuel costs.

“We think Russia is missing out on at least $6bn of tourism receipts, while Nigeria is missing $8bn if only it could boost tourism receipts to Ghana’s equivalent level (and any improvement on the current $0.5bn in travel receipts would be welcome given currency shortages in Nigeria.”

He said countries like Cambodia, Georgia and Laos had seen huge increases in tourism revenues over the past 10 to 20 years due in part to open visa regime policies.

“He added, “We think frontier markets like Pakistan and Nigeria could see strong tourism growth in the coming years from an extremely low base, much as Cape Verde and Laos have done in the past 20 years.

“When we look at net tourism receipts (spending abroad by your citizens, minus spending in your country by foreign tourists), we can see which frontier countries are doing best (Croatia, Jordan, Mauritius, Morocco) and which are doing worst (including Nigeria, Pakistan and Romania).”

According to the RenCap economist, Russia will boost its GDP and current account receipts if it bring forward its 2018 plan to introduce temporary visa-free travel for the World Cup (and made this permanent)

He added, “Nigeria, via improvements in airport quality and visa policy, might in the long-term do far more to address its tourism deficit, than it gains from visa revenues, which the Finance ministry never gets to see.”

5 Comments on Nigeria losing $8bn in tourism revenue – RenCap

  1. This is not encouraging at all

    Like

  2. How this thing take happen

    Like

  3. The only man that is working under Buhari is this man called Lier Mohammed his names is truly working his name have millions of impact in his daily life, Liar mohammed, which is lying mohammed, keep it up, you will lie yourself to oblivion,

    Like

  4. I fault this assessment. It is not about visa policy in the case of Nigeria, it is about insecurity. We fear our police as much as we fear armed robbers and kidnappers.

    Like

  5. will we eat tourism ,rubbish

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: