TICO rates travel & tourism sector high for year 2015

A consortium of travel agencies midwife by Travel Investment Company Limited (TICO) has admitted that the Nigerian travel and tourism industry is recorded high by activities involving the movement of people from one place to another.
The group noted that the tangible elements include transportation, accommodation, and other components of the hospitality industry.

To them, major intangible elements relate to the purpose or motivation for becoming a tourist, such as rest, relaxation, and the opportunity to meet new people and experience other cultures, or simply to do something different and have an adventure.

In 2014, it noted that the industry contributed $7,580 billion in GDP and 277 million jobs to the global economy. During 2015, the industry’s contribution to global GDP is forecast to grow by 3.7 per cent and employment by 2.6 per cent. This demonstrates the sector’s enduring ability to generate economic growth and create jobs at a faster rate than the global economy, which is due to grow by 2.9 per cent in 2015.

The wake of 2014 saw major disruption in the industry including the consolidation of 4 of the largest travel consultancy agencies in Nigeria to form a consortium TICO (Travel Investment Company Limited).
This consolidation was a confirmation of the fact that the Nigerian travel industry was waking to the growing trends of diversified revenue generation models of the airlines and affiliate consultancies in the country and that key stakeholders are responding proactively to these changes.

The Managing Director, TICO, Mrs. Irene Uti-Egbeogu, said, “We believe that one of the potentials of the industry to create jobs lies in the very nature of affiliate consultancy such as our TICO Affiliate Program we fondly named as TAP. It typically involves empowering people with training to enable them deliver on travel and tour consultation to the mass”.

She added: “The future is promising especially with Nigeria’s growing affluent mass population which in turn means more spending and more opportunities in retail services.

This consortium was set up to offer much more than just commission earning to its members but works towards enhancing efficiency in operations of its members which would increase overall profitability which will in turn create opportunities to re-invest in their businesses in areas covering technology, education and training.”

However, forecasts by the World Travel and Tourism Council (WTTC) showed that the outlook for travel and tourism in Nigeria is positive, given that the consumer spending is bound to increase as well as boosted profitability of the travel industry with the increased investment by foreign investors and the creation of jobs by the industry’s development.

Having grown for the fifth consecutive year in 2014, the Travel and Tourism industry has continued to up its contribution to the real GDP of Nigeria with an average 1.9 per cent contribution rate. More industry developments have augured what with the re-positioning of the Nigerian travel industry and with increased foreign direct investment through the industry.

According to the President & CEO WTTC, David Scowsill: “At a time of global economic challenges, Travel & Tourism continues to grow faster than the global economy, and is an enduring source of job creation and a driver of growth for every region in the world,” and “Governments looking for a sector which can create jobs and drive economic growth should focus on Travel & Tourism.
“This industry requires the right regulatory environment in which to flourish, along with progressive policies on visa access, taxation, human resources planning, and sustainability”, he said.