Commerce Keep Lagos As Second 'Most Expensive City' For Tourists
Due largely to the presence of commerce, Lagos, Nigeria’s commercial capital, remains the second most expensive city for travellers, with an average hotel room rate of £117 (N28,241.46). It comes behind Moscow, which remains the most expensive city for business travellers.
Lagos is home to the head offices of many international oil corporations and multinational companies, whose expatriate staff fly frequently into the city for official engagements and they usually find their way into the many hotels that dot the city’s landscape.
The latest interim Hotel Survey conducted by Hogg Robinson Group (HRG) reveals that, for the 10th year running, Moscow remains the most expensive city for business travellers with an average room rate (ARR) of £263.07 (N63,499.83).
The survey shows evidence of early signs of recovery in hotel rates, but not to the levels expected by the market, explaining that, in some cases, it was four or five percentage points below what was expected.
Margaret Bowler, director, Global Hotel Relations at HRG, says “the early sign of recovery in hotel prices is encouraging; what is a surprise however is that in certain key cities, the rates are not as high as the market had expected,” pointing out that, in many cities, this is attributed to new supply.
On the whole, she adds, “occupancy is increasing faster which, coupled with continued high demand, means we will likely see rates climbing in certain markets in the second half of the year and beyond.”
These developments are generally happening in mega-cities and, according to Bowler, the survey also shows the rise and rise of the mega-city, noting that 11 of the top 50 cities surveyed by room rate are also classified as mega-cities like Lagos, which is projected to be a mega-city with a projected population of 25 million people by 2015.
BusinessDay had reported that in what seems to be a dramatic twist, Africa, the black continent, has turned a toast of foreign investors, notably from countries that had been lording it over the continent economically and politically.
Sub-Saharan Africa, particularly Nigeria, is seen today by foreign investors as a green field with many international hoteliers looking to tap into the immense investment opportunities that the country offers, such that over 40,000 new rooms in 207 hotels are expected to be delivered into the continent’s hospitality market in the next 24-36 months.
Analysts say Africa is a growth phenomenon of the 21st Century and, according to Michael Chu’di Ejekam, director, Real Estate in Actis, whereas the rest of the world is growing at 3.3 percent, Africa at 5.5 percent, Nigeria’s GDP is growing at approximately 7 percent per annum.
Source: Legit.ng
