15 December 2016 Travel Trade Research TABLE OF

Transcript:15 December 2016 Travel Trade Research TABLE OF:
15 December 2016 Travel Trade Research TABLE OF CONTENTS: Formulating the Trade Strategy Summary Market Overview Tourism Value Chain Role Players Appendix The Nigerian outbound tourism industry has grown at a rate of 9% Y-o-Y in 2014, primarily driven by rising MICE tourism and the introduction of new flight carriers, especially Gulf carriers such as Emirates, Qatar and Etihad Travel Trade Landscape in Nigeria: Summary Source: Grail Research analysis In the Nigerian tourism value chain, leisure tourists mostly book via travel agents (primarily brick-and-mortar agents) and OTAs are mostly preferred by first-time tourists or for domestic bookings. Within MICE, tourists who travel for attending conferences book through organisers while meeting tourists are hold small businesses and therefore book directly through the travel gents The travel suppliers’ market is highly fragmented with more than 1,500 travel agents operating in the market mostly as ticketing agents, who are now diversifying their offerings and shifting towards selling complete packages. The travel intermediaries’ market has a relatively fewer number of tour operators, 100–120 players, which are preferred for buying packaged tours and for their expertise and knowledge of the destination market, enabling them to cater to the large corporations for MICE tourism Trade partners in Nigeria believe that diversity of offerings and affordability are the key drivers to sell South Africa, while the key inhibitors include time-consuming visa process, perception of xenophobic environment, limited air connectivity to South Africa and Nigeria’s decision to unpeg its currency from the US Dollar, which led to a significant devaluation of the Naira against other major currencies including South African Rand Trade expects SA Tourism to: 1) share regular updates on new products, 2) provide enhanced marketing support, 3) expedite visa processes and 4) focus the marketing investment on retaining existing tourists as it requires smaller investment than acquiring new tourists TABLE OF CONTENTS: Formulating the Trade Strategy Summary Market Overview Tourism Value Chain Role Players Appendix Nigeria recorded 9% Y-o-Y growth in outbound tourism, primarily driven by rising MICE tourism and improvement in air infrastructure. However, it is likely to be hindered by devaluation of the Naira and delay in visa processing Nigerian Outbound Tourism Market: Overview Note: 1Includes both Holiday and VFR tourists; 2Segment nomenclature is as per Euromonitor; Business includes actual tourists going outbound for MICE and Other Business Travel Source: 'Travel in Nigeria’, Euromonitor, Oct 2015; ‘Economists share their 2016 outlook for Nigeria, Kenya