Nigeria’s commercial capital, Lagos, is proving to be a magnet for travelers every year during the festive period known as ‘Detty December’, with new data revealing how the city’s annual celebration contributed to the country’s economy.
Independent research by advisory firm MO Africa Company Limited shows that between November 19 and December 26 last year, Lagos’ Murtala Muhammed International Airport (MMIA) handled around 550,000 inbound passengers. Nearly 90% of these arrivals were Nigerians living abroad, flying in primarily for leisure and tourism.
Kayode Omosebi, CEO of MO Africa Company Limited, says his team surveyed hotels, airports, short-let agents, and nightclubs to compile the data.
The top five countries of origin were the United States, Canada, Italy, South Africa, and the United Kingdom, with most visitors heading to Lagos, Edo, Delta, Ondo, and Ogun states in Nigeria. Lagos alone attracted an estimated 1.2 million tourists. Of those, 60% were domestic travelers, driven by insecurity in southeastern Nigeria.
The influx of visitors brought a surge in hotel bookings and short-let apartment rentals. December hotel revenue in Lagos hit N54 billion ($36 million) from 15,000 bookings.
Loading...
Short-term apartment rentals contributed another N21 billion ($13 million), with nearly 6,000 bookings made at an average nightly rate of N120,000 ($74.7).
Lagos’ nightlife was a major winner, with the top 15 lounges and nightclubs generating N4.32 billion ($2.7 million). On average, clubs raked in N360 million ($224,000) per day, with some tables fetching as much as N1.2 million per night ($746.7).
Beaches and resorts accounted for 70% of the N4.5 billion ($2.8 million) generated from recreational activities.
Lagos’ event centers hosted 1,175 bookings, earning a combined N1.2 billion ($804,000).
Luxury car rentals also saw a boom, with N1.5 billion ($937,500) spent on 750 bookings. Daily rates ranged from N200,000 ($124.4) to N2 million ($1,244) for high-end vehicles.
Omosebi notes that Lagos’ hospitality sector is increasingly reliant on cryptocurrency platforms.
“Eighty five percent of conversion to Naira and payments were done through this exchange platform. A number of bookings were done through agents rather than through booking platforms, which speaks to trust concerns and the power-play of agents in the industry,” Omosebi says to FORBES AFRICA.
He adds that ‘Detty December’ could bring in up to $2 billion in foreign exchange by 2026, provided the government addresses infrastructure, security, and supply chain challenges.
“The industry is evolving and we would start seeing niche focused hospitality and tourism experiences… There’s massive opportunity in bespoke event centers for concerts and shows,” Omosebi says.
Loading...