The Federation of Tourism Associations of Nigeria [FTAN], umbrella body for the tourism private sector in Nigeria has written an appeal letter to President Muhammadu Buhari through the Economic Sustainability Committee headed by Vice President Yemi Osinbajo that the travel and tourism industry in Nigeria is presently losing over N12 billion daily as a result of the economic impact of COVID–19.
Signed by its President, Alhaji Saleh Rabo, detailed these losses to include: ‘‘Daily loss to hotel operators in Nigeria – N2 billion; Daily loss from tourism spend of inbound Nigeria Travellers – N4 Billion; Daily loss to international airlines in Nigeria – N1.1 Billion; Daily loss to domestic airlines in Nigeria – N285 Million; and Daily Loss from tourism spend of domestic Travellers – N5.6 Billion.’’
To mitigate these losses and rescue the sector, especially in terms of job loss, which its estimated to be in excess of over 2 million people employed in the industry will take unpaid vacations and be offered part-time works – where skeletal services are available, it is asking the federal government to urgently release a stimulus package of N150 billion to the sector, especially considering the fact that the sector was not included in the N500 billion stimulus package recently announced by the CBN.
In view of these losses, the federation in its letter stated that: ‘‘We hereby plead with the Federal Government of Nigeria to rapidly intervene and implement tourism business-friendly fiscal and monetary measures, in the next few months, up to the tune of One Hundred and Fifty Billion Naira [N150, 000, 000,000. 00].
‘‘Accordingly, the Federation of Tourism Associations of Nigeria (FTAN) hereby appeals to the Federal Government of Nigeria to include domestic Tourism and Hospitality business operators in the N500 billion Covid-19 intervention fund. The inclusion of Nigeria’s Tourism and Hospitality industry is expedient and justified, considering the enormous contributions of the industry to overall economic growth and employment of labour in Nigeria.’’
It further stated that: ‘‘Most importantly, aside from government fiscal and monetary intervention measures, Nigeria’s tourism industry, urgently require transformational tourism development policies and programs to both jumpstart and sustain exponential growth of the industry.
Such tourism industry-specific and incentivizing government policies and programs have hitherto been lacking – in spite of the measurable contributions of tourism and hospitality businesses to national development. ‘‘FTAN calls on the Federal government to, as a matter of national emergency, provide financial intervention and other palliatives to mitigate the impact of Covid-19 on the Nigerian tourism and hospitality industry.
The federation also calls for Programmes and Incentives.’’ Besides calling for tax reliefs and government patronage to immediately reflate travel and tour companies with operational funds, there is an urgent need for government officials’ travel management patronage, FTAN wants the N150 billion stimulus to be applied through the Economic Sustainability Committee on a combination of different forms of fiscal and monetary measures and palliatives including, but not limited to, the following: Interest-free loans; Loan Moratorium; Tax Holidays: Import Duty Waivers; Tour Operator Grants; and SME Financial Grants.
‘‘FTAN incontrovertibly believes that should the Federal Government of Nigeria fail to financially intervene to save Nigeria’s tourism and industry from the adverse economic impact of Covid-19, half of the over 2 million Nigerians working in the industry would irreversibly lose their jobs.
Additionally, the 40 percent annual purchase of agricultural produce by hospitality operators in Nigeria would be reduced to less than 10 percent, if not completely obliterated,’’ stated Rabo. Also, the federation recommended for a post COVID – 19 action plans to include the following: ‘‘Impact Assessment Team: The federal government should, as soon as possible, institute a team of tourism professionals to do a study on the impact of Covid-19 to Nigeria’s tourism and hospitality industry.
The team’s assessment of the sector should be with a view to further recommending measures for the economic sustainability of the sector post-Covid-19. ‘‘Stimulus Package Implementation Team: It is advisable that FTAN officials, being the representatives of tourism private sector in Nigeria, should be included in the post-Covid-19 economic stimulus package implementation team, with respect to the tourism and hospitality sectors.
FTAN officials are best suited to offer professional advice relating to the individual needs of every member association in FTAN, as well as, the different tourism sector-specific intervention needs in Nigeria.’’